Admirals Retail account terms update

March 15, 2021 14:30

Dear Traders,

 

The Australian Securities and Investments Commission (ASIC) has issued a regulation which will change the way that Australian retail clients, as well as all overseas retail clients of Australian financial services firms, are to trade FX and CFD instruments starting from 29 March 2021.

The following is a summary of how the new rules will change our services to all retail clients. Please note, these changes will not affect our new PRO Account for wholesale, professional, and sophisticated clients. Please read the details below.

What will change for retail clients?

Leverage

The key focus point of the regulatory product intervention is the reduction of maximum possible leverage rates (i.e the increase of margin requirements) as outlined below.

New margin rates will apply to all new FX and CFD positions of Retail clients on and after March 29, 2021:

CFD underlying asset

Current maximum leverage

New (from 29 March 2021)

FX Majors

Major currency pair is a forex instrument that consists of 2 of the following currencies in any combination: AUD, GBP, CAD, EUR, JPY, CHF, USD. 

500:1 (0.2%)

30:1 (3,33%)

Major indices, other FX and GOLD


Major indices are: [DAX30], [DJI30], [SP500], [NQ100], [JP225], [ASX200], [STOXX50], [FTSE100], [CAC40] and respective future CFDs.

500:1 (0.2%)

20:1 (5%)

Other indices

200:1 (0.5%)

10:1 (10%)

Commodities (other than GOLD)

500:1 (0.2%)

10:1 (10%)

Digital currencies

5:1 (20%)

2:1 (50%)

Shares, ETFs and all other underlying asset classes not named above

20:1 (5%)

5:1 (20%)

 

We do not plan to change margin requirements on existing positions of retail clients established before 29.03.2021 in foreseeable future. This exemption however does not apply to open positions in MetaTrader 5 accounts with “netting” position management system.

 

Margin close-out

In the event of an account's equity dropping below 50% of reserved margin, we will close one or more open positions, starting with the one with the largest floating loss, in order to increase this ratio. 

The level of 50% is the new industry standard and therefore we will also be changing our margin close-out ('stop-out') levels on Trade.MT4, Trade.MT5 and Islamic accounts for retail clients from 30% to 50% beginning March 29, 2021. Please make sure to adjust your account exposure or free margin levels to meet this requirement. 

 

Negative account balance protection

Starting from March 29, 2021, possible losses of our retail clients on CFD positions will be always limited to the amount of funds in retail client's CFD trading and wallet accounts. Our wholesale clients will remain covered with our negative account balance policy with a payout limit of 100,000 AUD.

 

Trading incentives and benefits.

We will no longer be able to provide you with any rewards or rebates related to depositing money with us or trading. However, you can still redeem any rewards or rebates you have remaining up to 29 March 2021, and we will be looking for other ways to keep you engaged!

 

Wholesale clients and PRO Accounts

Clients whose trading strategies require the availability of higher leverage rates may consider switching their trading activity over to our new PRO Accounts for wholesale clients. We note, however, that the above-described protections afforded under ASIC’s product intervention measures for CFDs will not apply to wholesale clients.

PRO Accounts offer leverage up to 1:500 for CFDs on major indices and FX, whilst maintaining the same spreads and commissions as our retail accounts.  

Please visit the PRO Account section of our website if you want to learn more about your eligibility and review applicable requirements. 

 

We are here to help you navigate through these changes

Please also note that due to extensive changes we will be also updating our Product Disclosure Statement, Financial Services Guide and Account terms to reflect this.

We are here for you now and after the new rules will come into effect.

Please do not hesitate to contact your account manager at Admiral Markets if you have any questions. 

Trade responsibly!

 

Kind regards,

Admiral Markets

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Admirals
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