Forex.com has announced that it will be making some changes to its Japanese business. Clients of the brokerage can expect some changes with regards to the required margin rate for corporate customers. The required margin rates for five currency pairs will go up on the exchange platform.
The announcement of the increase applied to required margin rates for the five currency pairs was made in a notice published on the brokerage’s website. The notice also said that the changes will be applied over the weekend and they will be effective starting on Monday the 5th of August, 2019.
The five currency pairs to which the increased margin rates will apply are as follows:
AUDUSD: margin raised from 1.25% to 1.50%
USDCAD: margin raised from 1.00% to 1.50%
NZDCAD: margin raised from 1.25% to 1.50%
EURNOK: margin raised from 1.00% to 1.50%
USDCHF: margin raised from 1.00% to 1.50%
Changes applied to the margin rates of the aforementioned currency pairs will directly affect business clients who trade through MT4 and/or Advantage Trader. The changes only apply to the mentioned currency pairs and all other currency pairs on the exchange platform will have no changes applied to their leverage. The notice published on the website does not offer any explanation as to why these changes have been made by the brokerage.
State of forex trading in Japan
These changes applied to the Japanese business of Forex.com place tighter requirements for trading on the exchange. While they are placing these higher restrictions, other brokers in Japan are making efforts to improve the trading conditions offered to clients in a bid to attract more traders. Rakuten Securities And Monex Inc is one such broker trying to improve trading conditions. The brokerage recently lowered the required fees for trading U.S equities with the minimum fees for such trading being lowered to zero.
The changes will also be a big blow to MT4 clients in Japan. Forex.com is one of the few brokerages that offer MT4 in the country. Last year in July, Forex.com Japan availed MT4 Web to its clients. By increasing the margin rates, these clients may have no choice but to take the tighter requirements in their stride.
