Following a higher volatility across Russian ruble (RUB) pairs, the retail forex broker FxPro was forced to act. The broker informed on Friday that it is changing its margin requirements rules due to the turbulence on the forex market.
FxPro, providing ruble pairs’ trading, had to change its margin requirement for exposures in all RUB pairs to 10%, which will be effective from 10:00AM (server time) January 25, 2016 (Monday).
FxPro states that the reason is only the higher volatility, which poses increased risks for the broker.
The Russian ruble reached its all-time low against the US dollar this week, reaching the rate above the magic RUB80 level on the USD/RUB pair. The massive sell-off was caused due to oil price fall, continuing its pressure on the currency after previous falls due to Ukrainian conflict.
On the other side of planet, the New Zealand’s Financial Markets Authority issued an official warning on its website against the Cypriot broker Banc de Binary, join the Australian watchdog Australian Securities and Investments Commission (ASIC).
It has recommended all the traders not to trade with this broker as it is not authorized to provide its services in the country. The Banc de Binary broker has only the Cyprus Securities and Exchange Commission (CySEC) license, which is naturally not enough to entitle the broker to promote its services in New Zealand.
As the Australian and new Zealand territory is under strict supervision, only a small amount of brokers is authorized to operate in these countries, what poses an opportunity for an aggressive promotion of brokers, who do not take the authorization seriously.
Albeit the CySEC seems to be enforcing the rules somehow stronger recently, it is unable to reach all of them in other countries, outside its jurisdiction.
For any questions or recommendations, feel free to write us on firstname.lastname@example.org