Announcement: Recent Changes to your Trading Conditions

Dear Valued Client,

Greetings from INGOT Brokers.

INGOT Brokers would like to announce that the new regulations introduced by the Australian Securities and Investments Commission (ASIC) – effective as of March 29, 2021 – 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

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

If you are a wholesale client, your current positions will NOT be affected by the product intervention.

Legal Documents

Our Terms and Conditions have changed.  As such, we urge you to take the time to familiarize yourself with the new set of legal documents that you 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 you are trading EUR/USD at the price of 1.20000, and your 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 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 you need 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 you need to open the trade.

50% Margin Close-out Level

According to ASIC regulations, the minimum automated stop-out level is 50%. this means that 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 you to fund your account and ensure that you cover the additional margin required to avoid your 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*

However, this percentage may be increased depending on your account type and experience level. To know the exact number please check your account information page.

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 you would like to maintain the old leverage levels, you may do so by converting your 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 your eligibility.

-        To maintain your currently open positions, you can achieve that by funding your 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.


INGOT Brokers Team

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