Recent Changes to Australian Trading Conditions

Recent Changes to Australian Trading Conditions

Read in our blog post the new regulations introduced by the Australian Securities and Investments Commission (ASIC) – effective as of March 29, 2021 – which will impact retail clients of brokerage firms. Below, we will thoroughly explain these changes, which shall not affect our wholesale, professional, and sophisticated clients.


Current Positions

Retail clients will be able to maintain their existing leverage over all their currently open trades up until March 26, 2021. However, on March 29 forward, if they still want to maintain their open positions, they will need to ensure that their account is sufficiently funded. Otherwise, they will have to voluntarily close their positions, or else they may be subject to liquidation as the margin requirement will change.

If the client is a wholesale client, their current positions will NOT be affected by the product intervention.

Legal Documents

Our Terms and Conditions have changed.  As such, we urge our clients to take the time to familiarize themselves with the new set of legal documents that they will be required to acknowledge and abide by as of March 29, 2021.

Leverage Caps

Change in leverage restrictions will affect the margin amount retail clients are obligated to deposit in order to trade CFDs or Forex. Below are the proposed changes:


-        Examples

Suppose a client is trading EUR/USD at the price of 1.20000 and their account balance is USD 10,000. To place a trade of one lot (contract size = USD 100,000), the margin requirement will be as follows:

-        Before the ASIC Product Intervention on Mar 29, 2021:

At a leverage of 1:100, the initial margin requirement = contract size/leverage x price

                                                                                                 = 100,000/100 x 1.20000

                                                                                                 = USD 1200

This is the amount needed to open the trade.

-        After the ASIC Product Intervention on Mar 29, 2021:

At a leverage of 1:30, the initial margin requirement = contract size/leverage x price

                                                                                              = 100,000/30 x 1.20000

                                                                                              = USD 3999.9

This is the amount needed to open the trade.

50% Margin Close-out Level

An automatic stop-out will occur if a retail account's equity falls below 50% of the required margin. This percentage (margin level) is updated periodically on our platform.

Open positions existing before March 29, 2021, will be subject to the new 50% margin close-out requirement, which may need the client to fund their account and ensure that they cover the additional margin required to avoid their positions being closed-out.

It is important to note that once the equity* falls below 50%, the open position(s) may be subject to automatic stop-out.

                                                       Equity = Balance + Running Profit/Loss*

Prohibition on Inducement

Offering some inducements (such as trading credits and ‘free’ gifts) to retail clients is no longer allowed. This excludes certain circumstances like some discounts; educational, information, and research tools; and information services.

Negative Balance Protection

Protection against negative account balances will be provided by limiting a retail client’s CFD losses to the funds in their CFD trading account.

Affected Clients

These changes will only impact retail clients.

Additional Options

-    If traders would like to maintain the old leverage levels, they may do so by converting their account to become a Sophisticated Trader via the INGOT Brokers Wholesale Account. Click here to check the terms and conditions of becoming a Wholesale Trader, as well as their eligibility.

-        To maintain their current open positions, they can achieve that by funding their account.

Professional Account

For more information about the ASIC product intervention, do not hesitate to contact our expert customer support team via customerservice@ingotbrokers.com.au.

If you would like to be introduced to other entities outside of Australia, please consider professional independent advice in this regard and if you would like to be considered afterward, as a client of those entities, feel free to contact them at customerservice@ingotbrokers.com.

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