FxPro Reverses Course, Raises Leverage Ahead of Brexit Vote
Bucking the trend put into place by most Forex brokers to raise the margin requirements on all trades in response to the upcoming Brexit referendum, FXPro has just informed its clients that they can trade this week at near-normal margin and leverage conditions.
Reversing the decision it put into place just last week, whereby it was going to limit leverage on major GBP pairs to 50:1 (2% required margin), and on minor GBP pairs to between 12.5 to 25:1, the London based FCA and CySEC regulated retail broker informed its clients via email that the company was increasing leverage allowances to near-normal levels of 200:1 while reserving the right to re-lower them depending on market conditions as this week progresses. It also warned its clients that fixed spreads may be allowed to float so as to reflect underlying market conditions around the time of the referendum.
Leverage on FxPro's cTrader platform will be limited to 100:1, tightening to 50:1 starting 12:00 GMT+3 on June 22, the day before the Brexit referendum.
FXPro had joined major retail brokers and banks such as Saxo, Oanda and FXCM that over the last few weeks have put higher margin requirements into place in anticipation of market volatility surrounding the June 23rd Brexit referendum.