Forex brokers up margin requirements ahead of US election

As expected Saxo and other forex brokers are sending out notifications to customers advising that margins for forex trading will be increased over the US election.

The margin uplift ranges from 1% for major currencies like GBP and EUR to around 10%-15% for more volatility and less frequency traded contracts like the Mexican Peso,  The MXN incidentally is trading near all time highs against the the USD.

Forex and spread betting brokers such as IG, Spreadex (Read our Spreadex Review…), ETX Capital and Core Spreads are generally becoming more risk averse when it comes to offering highly leveraged positions to clients over major events.

Two instances in recent years have seen unprecedented moves in the currency markets. Brexit has knocked Sterling and the CHF cap removal saw a huge drop.

Typically most forex traders look to make small turns on trades with very high leverage on platforms such as MT4. So a big move can wipe their account out. Especially if the move is sudden, which means that stops basically become ineffective due to slippage.  Unless of course they are guaranteed stops, but they only really apply to smaller trades.

For forex and CFD brokers, large sudden moves are a disaster because (the good ones) tend to hedge most positions so will have to cover the losses of clients in negative equity until they pay up.  Even if a client doesn’t end up owing money it means that their account will no longer be active, which is a loss of income for the brokers.

Compare Vetted Investing, Trading & Currency Accounts

Investing AccountsTrading PlatformsCurrency Transfers
Compare Investment Accounts

Compare Investment Accounts

Compare Trading Platforms

Compare Trading Platforms

Compare Currency Brokers

Compare Currency Brokers

Would You Like More Information On Featured Trading Platforms?



Visit IG


IG Reviews


Visit CMC


CMC Reviews


Visit Pepperstone


Pepperstone Reviews
Can't find what you are looking for? Visit our online trading provider comparison page.

Trading Risk Warning

ALL INVESTING INVOLVES RISK. Investing, Derivatives, Spread betting and CFD trading carry a high level of risk to your capital and can result in losses that exceed your initial deposit. They may not be suitable for everyone, so please ensure that you fully understand the risks involved.
ESMA & FCA Risk Warning – “CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. Between 68-89% of retail investor accounts lose money when trading CFDs. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. Capital at risk”