ASIC introduced new rules on how retail investors can trade CFDs from 29 March 2021. The key changes are:
For more information on the latest ASIC regulatory changes click here.
The changes came into effect on 29 March 2021.
For more information on the latest ASIC regulatory changes click here
The nature and complexity of CFDs means they are not for everyone. ASIC, Australia’s corporate regulator has moved to limit some of the risks traders can experience when trading CFDs.
For more information on the ASIC regulatory changes click here.
No. The ASIC regulatory changes have been introduced for all providers onboarding clients in Australia.
For more information on the changes please click here
Leverage is a way to make larger trades than your capital would otherwise allow. It allows you to use a deposit, known as a margin, to increase the size of a position you take on an asset.
A leverage ratio is your total exposure compared to your margin. For example, investing $100 using a 5% margin would give you the same exposure as a $2000 non-leveraged investment. This is a leverage ratio of 20:1.
Leverage ratio limits changed across all products on the 29 March 2021.
This means that increased margins apply to new positions from 29 March 2021.
For more information regarding the new leverage ratio limits click here.
The different limits reflect the different rates of volatility and liquidity common to each asset class, helping protect your position from rapid price movements.
For more information on the new leverage ratio limits click here.
Margin close-out protection means that if the total funds in your CFD account fall below 50% of the margin required for all your open CFD positions, we will automatically begin closing your open CFD positions. This will happen as soon as market conditions allow.
We’ll keep doing this until your net equity is back above 70% of the margin required for all your remaining open positions.
No. CMC Markets is already using margin close-out protection. This means there will be no changes to current margin close-out protection for CMC Markets retail clients from 29 March 2021.
The order of margin-close out protection will be dependent on the preferences you have set up on your trading account.
There are a few ways to avoid a margin close-out.
You can:
Think of negative balance protection like a safety net that catches you if the market turns against your position too quickly for the margin close-out orders to slow your fall.
All trading carries risk, but following ASIC regulatory changes from 29 March 2021, this new protection means you won’t end up owing additional money to your provider if the market turns against you. You can only lose what has been initially deposited in your account.
For more information on the ASIC regulatory changes click here.
CMC Pro is an account for CFD traders who are looking for a provider that recognises their commitment to trading. Opening a CMC Pro account gives you access to a number of exclusive benefits, including higher leverage and cash rebates.
Check your eligibility for a CMC Pro account here.
There are no costs to become a CMC Pro client, but you will need to demonstrate you meet the “wholesale client” eligibility criteria under the Corporations Act.
You can check your eligibility for a CMC Pro account here.
CMC Markets Pro account holders are classified as wholesale clients. To be eligible for a CMC Pro account you must meet the “wholesale client” eligibility criteria under the Corporations Act.
To learn more about the eligibility criteria click here.
With all CMC Markets accounts you get the same access to our award-winning trading platform, wide range of instruments and advanced trading tools. The CMC Pro account will give you exclusive access to monthly cash rebates and priority perks, plus a dedicated account manager.
To learn more about CMC Pro click here.
If you’re not eligible for CMC Pro, you can still trade thousands of financial markets on our award-winning platform using a standard CMC Markets account. Learn more
Only clients that are new to CMC Markets will need to first open a standard CFD trading account before applying for a CMC Pro account. If you already have a CFD account with us, you can apply for a CMC Pro account - if you think you may be eligible.
You can learn more about CMC Pro and our eligibility requirements here.
As a CMC Pro client, you are not entitled to certain protections afforded to retail clients. This means CMC Markets is no longer required by law to provide you with the same rights and treatment as a retail client.
This includes:
Despite this, CMC Markets will continue to provide all relevant disclosure documents as required to be provided under the Corporations Act. CMC Markets will also hold wholesale client funds in a segregated client money trust account which meets and exceeds the requirements of the Australian Client Money Rules and ASIC Regulatory Guide 212.
To find out more about CMC Pro click here.
We’ll contact you by email to notify you when your application to become a CMC Pro client has been approved and you have switched over to a CMC Pro account. Your login details, account number and platform settings will remain the same.
Remember, while you are waiting for your CMC Pro account, you can still trade on your standard account.
