Forex industry players are adjusting their operations to adhere to the new rulings of regulators. As the latter become stricter more and more brokers seek new ways to protect themselves and of course attract more traders. In particular, this is the reason why the traditional Market Maker Markets.com adopted STP model.
23 January, AtoZForex – In November we reported that CySEC Banned Retail Brokers Bonuses, restricting leverage and more. Almost two months later, bonus oriented Market Maker retail Forex Broker Markets.com appears to be adopting to the new industry landscape. In particular, markets.com will be adjusting its leverage, margin call process and margin close-out level. Not only that, the broker will also be implementing the market execution method ahead of new rulings from the Cyprus Securities and Exchange Commission (CySEC). The changes will come into force on the 29th of January.
Market Maker Markets.com adopted STP model
The correspondence sent to clients is very complex and embraces various changes. These changes include the introduction of a lower default leverage ratio, altered close-out level, and inactivity fee. Yet, the most crucial change is that the broker is changing its business model from market maker to STP model.
CySEC’s recent regulatory update is the reason behind the introduction of the new measures. Since the SNB Black Swan event CySEC is trying to improve its reputation. Now the watchdog is attempting to raise conduct standards across the industry.
New terms & conditions
You can not just say Market Maker Markets.com adopted STP model and finish it there. The measures that Market.com will implement are listed in details below:
- The company will adopt lower default leverage ratio of 1:50.
- Traders will have the option to choose 1:25, 1:100 and 1:200 leverage ratios. This will affect open positions.
- Current client trading accounts will remain at present leverage levels, unless a client decides otherwise.
- The company will restrict leverage ratios for less experienced retail clients.
- There will be negative balance protection.
- Margin close-out levels will be changed from 20% to 50.
- The company will terminate bonuses. Hence, bonuses awarded prior to the 29th of January will be canceled.
- Mode of trading will be changed to Market execution. This will be available for Markets.com Web/Mobile Trader and MT4 users.
- Accounts with no trade activity for over 3 months will pay $10 inactivity fee per month.
Additionally, Markets.com decided to launch a new complaints page on their trading platform. This is done in order to improve traders’ communication with the broker.
The above-indicated changes will be effective from the 29th of January.
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