Changes for retail clients: what you need to know
ASIC has changed the way we can offer our products and services to retail clients of our ASIC licensed entity. We’ve put together a summary of the main changes below to help you understand these and how they may affect you. The ASIC changes come into effect on 29 March 2021; however, Pepperstone will be implementing these changes on 28 March 2021.
Changes to leverage caps
A key change is leverage restrictions, which will affect the amount of margin retail clients are required to deposit to open any new CFDs or FX positions from 28 March onwards. Here’s how the changes look:
- 30:1 leverage on major currency pairs
- 20:1 leverage on major indices, gold and minor currency pairs
- 10:1 leverage on commodities (excluding gold) and minor indices
- 2:1 leverage on cryptocurrency assets
- 5:1 leverage on shares or other underlying assets
Compulsory margin close outs
Margin stop outs remain at 50% margin level. This means that you'll need to adequately fund your account and ensure that you have enough margin to support this stop out level.
It’s important to note that trades will be automatically closed out where you have insufficient funds to support these stop out requirements.
Negative balance protection
We’ll provide you with negative balance protection to limit the losses you can incur when you trade with us to the funds available in your CFD trading account.
Prohibition on inducements
Inducements are not available for Retail clients.
Will I be affected?
The ASIC changes will impact retail clients only, not wholesale clients.
You may be able to become a wholesale client (or 'Pepperstone Pro'). It's important to note that you'll lose some retail-only protections if you become a Pepperstone Pro, so you must consider this in your decision-making. If you're interested in finding out more about becoming a Pepperstone Pro, please visit our Professional Clients page.