Changes in trading terms for Stock CFDs and ETF CFDs

February 04, 2021 13:00

Dear Traders

 

National governments across the globe are applying even more extraordinary measures in order to prevent an anticipated economic downturn. The unprecedented amount of monetary stimulus not only provides much-needed support to our local communities, but also sends shockwaves through the financial system which in turn create imbalances and volatility breakout stories for the history books. 

In response to the challenges that online securities brokerage firms are facing, we decided to do the following changes in the trading terms of our Stock CFDs and ETF CFDs on our Trade.MT4 and Trade.MT5 accounts:

Leveraged trading in penny and low price stock CFDs

We will switch certain CFD instruments into close-only trading mode:

4 February 2021

7 February 2021

  • All stock CFDs and ETF CFDs if current market price is less than: 5 USD / 5 EUR / 5 GBP / 5 CHF / 25 DKK / 50 NOK / 50 SEK / 5 AUD / 500 JPY 
  • All stock CFDs where underlying stock issuers market capitalization is less than 1 Billion USD (or equivalent in other currencies)

 

Exposure limit per each trading account

Starting from 7 February 2021, the maximum exposure limit applicable to a portfolio of stock CFDs and ETF CFDs will be 100,000 EUR per each trading account. If the value of your open positions in these instruments increases above the limit, you will not be able to add more Stock CFDs or ETF CFDs to your CFD account. You are not required to close any of your open positions (unless you wish to do so) if the value of your portfolio of open positions appreciates beyond this limit.

 

Transaction fees for Stock CFD and ETF CFD

Our zero-fee trading offer in the segment of Stock CFDs and ETF CFDs will be discontinued on 15 February 2021. Starting from this day and going forward, every transaction in these instruments will be subject to a transaction fee as outlined below. Fees will apply to both new and old positions, including those opened prior to 15 February.  

Market

Transaction fee

Minimum fee

USA

0.02 USD per share

1 USD

Germany

0.1 % of trade value

1 EUR

France

0.1 % of trade value

1 EUR

UK / GBP-denominated

0.1 % of trade value

1 GBP

UK / USD-denominated

0.1 % of trade value

1 USD

UK / EUR-denominated

0.1 % of trade value

1 EUR

Other Europe / EUR-denominated

0.15 % of trade value

1 EUR

Other Europe / USD-denominated

0.15 % of trade value

1 USD

Other Europe / DKK-denominated

0.15 % of trade value

  30 DKK

Other Europe / NOK-denominated

0.15 % of trade value

  10 NOK

Other Europe / SEK-denominated

0.15 % of trade value

10 SEK

Other Europe / CHF-denominated

0.15 % of trade value

1 CHF

Australia

0.15 % of trade value

8 AUD

Japan

0.15 % of trade value

1250 JPY


With Stock and ETF CFDs, you have the unique option to go long and short in the market and trade on margin with leverage. Even with these changes, our transaction fees for stock & ETF CFD are still very competitive, as others often charge a minimum fee of 10 USD for US stock CFD. Our minimum fee is 10 times lower.

Leverage rate changes for CFDs on Stocks and ETFs

Starting from 15 February 2021 new adjusted leverage rates will be assigned to each particular stock CFD and ETF CFD to reflect liquidity conditions of the underlying security, the market capitalization of the underlying stock issuer, or assets under management (“AuM”) for ETFs. The general principle is that the less liquid stocks of smaller companies will be available with lower leverage. New higher or lower leverages will apply to all new positions in Stock CFDs and ETF CFDs. Previously established positions remain unaffected only until your next trading action in any of these instruments. When we execute a trading order of any type (including stop-loss orders, take profit orders, automated trade executions by a Robot/EA and partial closes), we will instantly apply new leverage to all your open positions in CFDs on stocks and ETFs. 

Here is what to expect:

Underlying security features

New margin requirements

(Retail clients)

Stocks:

  1. constituent of a major index: SP500, DJIA30, NQ100, DAX30, CAC40, STOXX50, FTSE100, IBEX35, AEX25, ASX200, Nikkei225, and
  2. issuer market cap above 50 Billion USD

5%

(Leverage 20:1)

 

Stocks:

  1. constituent of a major index: SP500, DJIA30, NQ100, DAX30, CAC40, STOXX50, FTSE100, IBEX35, AEX25, ASX200, Nikkei225, and
  2. issuer market cap between 5 - 50 Billion USD

ETFs:

  1. ETF AuM above 50 Billion USD

10%

(Leverage 10:1)

Stocks:

  1. price above 5 USD, and
  2. issuer market cap above 5 Billion;

ETFs:

  1. price above 5 USD, and
  2. ETF AuM above 5 Billion USD

20%

(Leverage 5:1)

All other stocks and ETFs not falling into any of groups above

50%

(Leverage 2:1)

 

We are ready to help and ready to onboard you

Challenging times bring about daily opportunities and risks. Some brokers have even stopped onboarding of new clients, in order to manage the risks they face. We are ready to welcome you on board of Admiral Markets, as fast as possible, including many free instant payment methods, for your quick start of trading with us. We are proud to say: We are the quality market leader, we were just awarded the “Best CFD Broker 2021” within our core market Germany by the DKI, Deutsches Kundeninstitut.

We are closely monitoring the developments in financial markets as they go through the unchartered territory of the economic development cycle. In times of high volatility like now, trading brings you huge opportunities - but also risks. It may be a good idea to focus on the high liquidity instruments, such as DAX30, DJI30, Gold and EURUSD now. These are the most traded instruments at Admiral Markets in 2020, and we give you the best trading condition here as always! 

Should you have any questions about how the above-described changes may affect your trading account, please do not hesitate to contact your account manager or our Customer Service team.

 

Best regards, 

Admiral Markets

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