As of October 11 2018, Admiral Markets Pty Ltd. has introduced a negative balance policy to allow clients to trade and analyse the financial markets with confidence.
Being prone to volatility, investors who trade in the Forex and CFD (Contract for Difference) markets can be vulnerable to sudden price changes. When these movements occur in instruments being held in an open trade, this can have a significant impact on the value of those positions and could result in an investor’s account balance falling below zero.
Should this happen, Admiral Markets may exercise its discretion to relieve clients of their repayment obligations by returning the negative balance to zero. This will protect the financial position of eligible clients, and will prevent them from falling into debt due to unsuccessful trades.
This policy follows global trends in consumer protection. In Europe, recent regulatory changes made by the European Securities and Markets Authority (ESMA) require European CFD providers to limit Retail client losses with automated negative balance protection.
The CEO of Admiral Markets Pty Ltd., Cristian Moreno, commented, “Although negative balance protection is not an Australian regulatory requirement, we are proud to be leading the way with this initiative. Our new negative balance policy will help give retail clients the peace of mind they need to trade confidently, and is just one of the ways we support our clients’ investment journey.”
Meanwhile, Co-CEO of Admiral Markets Group AS, Jens Chrzanowski, stated, “As a global company, Admiral Markets feels that the success of our clients is paramount. When our clients succeed, we succeed! Negative balance policies help ensure they have the best possible trading experience, and the entire Admiral Markets Group is proud to see the Australian subsidiary taking the initiative to voluntarily add this policy to their offering.”
Admiral Markets Pty Ltd.’s negative balance policy will be provided on a purely discretionary basis for balances ranging from zero to negative AUD100,000. Find all terms and details of the policy here.
About Admiral Markets
Admiral Markets is a leading online Forex and CFD trading provider. In addition to a wide range of financial instruments, Admiral Markets offers free educational materials, including analytics, webinars and seminars.
Risk disclosure: Trading in financial markets on margin carries a high level of risk and losses may exceed your initial deposit. Admiral Markets UK Ltd. recommends you seek advice from an independent financial advisor to ensure that you understand the risks involved with Forex, CFDs and margin trading (https://admiralmarkets.com/