As of October 11 2018, Admiral Markets Pty Ltd. has introduced a negative account balance policy to allow clients to trade and analyse the financial markets with confidence.
Being prone to volatility, investors who trade in the Forex and CFD (Contract for Difference) markets can be vulnerable to sudden price changes. When these movements occur in instruments being held in an open trade, this can have a significant impact on the value of those positions and could result in an investor's account balance falling below zero.
Should this happen, Admiral Markets may exercise its discretion to relieve clients of their repayment obligations by returning the negative balance to zero. This will protect the financial position of eligible clients, and will prevent them from falling into debt due to unsuccessful trades.
This policy follows global trends in consumer protection. In Europe, recent regulatory changes made by the European Securities and Markets Authority (ESMA) require European CFD providers to limit Retail client losses with automated negative balance protection.
|The CEO of Admiral Markets Pty Ltd., Cristian Moreno, commented, "Although negative balance protection is not an Australian regulatory requirement, we are proud to be leading the way with this initiative. Our new negative account balance policy will help give retail clients the peace of mind they need to trade confidently, and is just one of the ways we support our clients' investment journey."|
|Meanwhile, Co-CEO of Admiral Markets Group AS, Jens Chrzanowski, stated, "As a global company, Admiral Markets feels that the success of our clients is paramount. When our clients succeed, we succeed! Negative balance policies help ensure they have the best possible trading experience, and the entire Admiral Markets Group is proud to see the Australian subsidiary taking the initiative to voluntarily add this policy to their offering."|
Admiral Markets Pty Ltd.'s negative balance account policy will be provided on a purely discretionary basis for balances ranging from zero to negative AUD100,000. Find all terms and details of the policy here.
Risk disclosure: Forex and CFD trading carries a high level of risk that is not suitable for all investors. Presented information is not an offer, recommendation or solicitation to buy or sell. Before making any investment decisions, you should seek advice from independent financial advisor to ensure you understand the risks involved. Read more at admiralmarkets.com.au