The June 23rd EU Referendum is getting closer, with every opinion poll moving the pound more quite a bit. The event takes place when markets are open, but liquidity may be thin in parts of the Asian session, and uncertainty may be abundant in the weekend ahead of the vote.
Brokers are getting ready for high volatility. Here are updates from currently 41 forex brokers, and more data will be added as it comes in.
Update: UK leaves the EU – it is official – expect more crashes
And what happened on the actual event?
Weathering Brexit: updates from 12 brokers (and counting)
The list is an alphabetical order:
- Admiral Markets: The broker is making changes on various pairs according to account sizes. All the information is here. Note that this applies to both the pound and FTSE. The changes are from June 20th to June 27th.
- AxiTrader: The broker is AxiTrader: “From market open on the 20 June, AxiTrader will be lowering the maximum leverage available on all products. As detailed on the website, for some products, the maximum leverage will be 20:1 while on others it will be 100:1. This will remain in place until market close 28 June.”. And “AxiTrader is raising minimum margin requirements to 5% on GBP positions, limiting leverage to 20:1.” More
- BMFN: As a precaution, effective Sunday, June 19th, at 5 pm EST, BMFN is increasing margin on all FX instruments to 2% or 50:1 leverage, margin on commodities will be raised to 5% or 20:1 leverage, all indices will require a margin of 10% or 10:1 leverage, and the company noted that the stop-out rate will be 100%, as per the update. More
- Capital Index: “Margin for all tradable assets up to 5%, stop out level up to 90%”
- CMC Markets: The broker makes a change on June 13th and another one on June 20th. This refers to stock indices, commodities and GBP pairs of course. All the information is here. Thanks to reader edzfx for the information.
- Darwinex: “Margin for EUR crosses up to 2% (from 0.5%-1%), margin for EUR/GBP up to 5%”
- DeltaStock: So far, nothing has been decided upon, but the broker is considering taking steps.
- DMM: “DMM FX has also issued an update advising that in order to further protect its clients’ positions, trading will be suspended from 07:10 (server time) for the following FX pairs: GBP/USD, GBP/AUD, GBP/CAD, GBP/CHF, GBP/NZD, GBP/JPY, EUR/AUD, EUR/USD, EUR/NZD, EUR/CAD EUR/CHF, EUR/JPY and EUR/GBP.”. This is the most extreme response.
- easyMarkets: This broker stands out from the crowd by committing to a leverage of 200:1. Here is a quote from the news: “At easyMarkets we will honour our promises to our traders just as we have done during every major market moving event. Just as our free guaranteed stop loss and fixed spreads protected traders during the CHF events of January 2015, so they will protect them during the Brexit.”
- ETX: Margin for GBP pairs and minor EUR up to 3%. GBP/CHF and EUR/CHF up tp 6%. More
- Forex.com: Also Gain Capital changes margins in stages, as reported in Forex Magnates:The company announced that after the market closes this Friday on June 17th it will put in place temporary changes to its margin rate requirements to help clients’ reduce risk – as volatility is expected around time of the June 23rd event. Minimum margin rates for all UK indices and GBP crosses including EUR/GBP will increase six-fold from 0.5% to 3% after the close of trading this week, and will thus affect traders when markets open again next Sunday. In addition, minimum margin rates for EUR crosses, EUR indices, and US Indices will be doubled from 0.5% to 1%, according to the update.
- Forex Club: “Due to this and in order to protect traders from related possible losses effective the night from Tuesday to Wednesday (22th of June) maximum leverage available for trading is not going be more than 1 to 20. Thus, margin requirements for positions that are already open will be adjusted and may be stopped-out in case there is not enough equity. More
- FreshForex: “FreshForex has also just announced a series of new margin requirements that will apply to all currency pairs with the British pound (GBP), euro (EUR) and Swiss franc (CHF) and contracts for the European indexes (CAC40, ESTX50, FTSE100). A full breakdown of the new requirements is listed on the company website and will come into force on 22 June until the market closes on 27 June.” More
- FXCM: The broker is said to be embarking on a strategy to change margins on both the pound and the euro pairs beginning on June 10th and extra measures on June 17th. Update: these are the affected pairs: “Following is a list of all the FX pairs that have been affected by the margin changes: EURUSD, GBPUSD, EURAUD, EURCAD, EURGBP, EURJPY, EURNZD, GBPAUD, GBPCAD, GBPCHF, GBPJPY, GBPNZD.”
- FxCrown: Margin for GBP and EUR crosses down to 4%.
- FxPro: The UK regulated broker has sent updates to its customers regarding Brexit, information about the event as well as the risks of high volatility. So far, it hasn’t made changes to margins. Update: “However LeapRate has learned that over the weekend FxPro has sent an email to clients (see details below) that the company has increased leverage allowances to near-normal levels of 200:1 (depending on position size, as outlined below), although it reserves the right to re-lower them depending on market conditions as this week progresses.”
- FXTF: The Japanese broker changes requirements to these pairs: “GBP/USD, GBP/JPY, EUR/GBP, GBP/AUD, GBP/CAD, GBP/CHF, GBP/NZD, and GBP/ZAR, including exceptions for some of the pairs across several of its platforms such as MT4 and high-speed FX”.
- FXCC: Also here, caution is warranted: “FXCC has announced the following preventive measures. From 13 June, the margin requirements were increased by 200% for all GBP pairs and 100% for all EUR pairs.”
- Gallant Capital: “Ahead of the UK referendum vote on Thursday 23rd June we are reminding you of a temporary increase in margin rates which will take effect on June 21st at 20:00 GMT +1 on several currency crosses and CFD markets. On June 27th therevised margin requirements will be returned to their previous normal percentage levels between 20:00-22:00 GMT+1. We will inform you beforehand if otherwise.”. Thanks to reader Ed for the information.
- Hantec: As a consequence of the potential for heightened market movements, please be advised that leverage for all accounts will be restricted to 25:1 commencing 19th June until 24th of June and potentially for a short while after this date depending on market volatility. More
- IC Markets: “IC Markets has targeted GBP-denominated currency pairs and the UK100 index as the key focus of its leverage reduction. As such, the broker has implemented a leverage of 1:50 (2%) for GBP pairs and the UK100 index, by far the index with the largest exposure into the UK capital market. By extension, EUR currency pairs and the Euro indices are also slated for an adjustment – both sets of instruments will see their leverage reduced to 1:100 (1%)”. More
- IG: Margin requirements will be increased on June 10th, 17th and 22nd.
- INTL FCStone: GBP and EUR pairs, gold, silver- 200% of min CME margin.
- Invast: “Net open positions for GBP crosses restricted, higher margin”
- Iron FX: The Cyprus based broker announced a change in requirements coming to effect on Friday June 17th and perhaps another change will come on June 22nd.
- JFD Brokers: “Margin for AUD/USD, USD/CAD, NZD/USD, USD/JPY down to 0.5% from 1.0%”
- Lite Forex: Changes will come to effect around the referendum, from June 20th to the 27th, related to all GBP, EUR and oil pairs. And: “Suspend the opening of new trades with the “close only” mode solely available for the following GBP and EUR pairs: GBPNOK, GBPSEK, GBPZAR, EURPLN, EURHUF, EURNOK, EURCZK, EURSEK, EURDKK, EURZAR, GBPTRY, EURTRY.”
- OANDA: Lower maximum leverage: “To help ensure our customers are more insulated from such movements, we will be temporarily lowering the maximum leverage available on GBP pairs to 20:1 after the market close on June 17, 2016. The affected pairs will return to prior leverage levels after the market close on June 24, 2016”
- OctaFX: Margin for EUR Pairs up to 0.5% , margin for Pairs up to 1%, and can be increased to 2% (1:50).
- Orbex: New measures applied and perhaps more will follow: As of Thursday, 16 June the margin requirements for GBP and EUR crosses will be increased to 4% (1:25 Leverage). Margin requirements for other symbols will be 1% (1:100 leverage). As of Monday, June 20th the Margin stop-out level will be at 50%.
- Pepperstone: “The new maximum leverage/margin requirements for GBP pairs and UK100 is 50:1 and 100:1 for EU pairs and EU indices.” More
- Saxo Bank: The Danish broker will hike margin requirements by 7%. “Saxo Bank’s main plan is apparently to hike margin requirements on GBP currency pairs to 7%, meaning max leverage of about 14:1 on GBPUSD, EURGBP and other GBP pairs. Leverage allowed in normal market conditions at Saxo Bank in GBP majors is 50:1, or margin requirement of 2%.”. Update: GBP 7%, EUR 3%, Indices 5-8%. More here.
- Rakuten: “Maring for GBP pairs up, GBP/USD to $140”
- Roboforex: “Close only” mode for GBP pairs. Since 23rd deposit for GBP instruments up to 20 times”.
- ThinkForex: Here are the changes: “With the Brexit vote taking place on the 23rd June 2016, ThinkForex has reported that it will increase margins on all GBP crosses and the UK stock index to U%, in anticipation of increased volatility during the UK’s vote on is a relationship with the European Union.This change will come into play from market open Sunday the 19th of June till rollover on Monday 27th 2016, however if volatility continues the changes maybe be extended.”
- Tickmill: The makes changes: Tickmill will lower the maximum leverage to 1:25 for all GBP pairs; 1:100 for all EUR pairs; and to 1:20 for the UK100 index. The adjustment will be active from June 20, 0:00 (GMT+3) until June 24, 24:00 (GMT+3). Once the market turbulence settles, the leverage rates will be returned to their original values.
- TradersWay: Also here, lower leverage is applied: “Due to these market factors, we have taken the decision to increase the margin requirements for all GBP pairs by a factor of four, with the change being effective from the 13th of June 2016. This means that your leverage on all GBP pairs therefore will be four times lower. E.g. if your account leverage is 1:400, then your effective leverage applied to GBP positions will be 1:100.” Thanks again to edzfx .
- UFX: “From Wednesday 22 June until Monday 27 June all the GBP pairs will be set for leverage 1:50 whereas gold will set for leverage 1:100. All UFX clients have been informed of the amendments.” More
- Vantage FX: The Australian broker is doubling the margin requirements in two stages: on June 13th and June 20th.
- XM: Here are the major changes: “XM explained in an update to clients that from 23:00 (GMT+3) this Friday June 17th, it will increase margin requirements on all its currency pairs to 1% which will effectively reduce leverage to 100:1, as well as on gold and silver. The company noted that all other instruments it offers will not be affected. ” More
- Z.com: Also the UK arm of GMO Click makes changes: “The news follows after the company made a similar announcement for its GBP-related currency pairs last week including in GBPUSD, GBPJPY and EURGBP which were changed to 2% margin or 50:1 leverage, and followed now with a 50% cut on leverage for EUR/USD to 100:1 as volatility may spread to additional currencies and securities.”
If you have more information, please share the information in the comments and we’ll update the article.
Also see all the Brexit updates
Thanks to Finance Magnates, Leap Rate and readers for the help.