ASIC further regulates the selling of CFDs to Retail Investors
The Australian Securities and investment commission has announced the restrictions on selling. They would like to protect investors, as they are saying. New rules will also mandate negative account protection. It will ensure customers do not lose more than their trading strake. The rules that prevent bonuses and other encouraging activities will discourage overtrading. The bad news for the brokers is that the ASIC’s decision will limit how much leverage it will offer. The maximum of leverage can reach 30:1. The trading industry considers these rules to be huge harm for the customers. This is also very unfair for some of the safest brokers in Australia due to how carefully they regulate their CFD offers in the country.
Restricting it for everybody is pretty harsh and could lead to serious losses down the line. This will be a bombshell dropped by ASIC to the retail investors. Today, many FX brokerages in Australia understand that this news will change many things in the country. Commissioner Armour said that the leverage ratio limits will reduce the size and the speed of retail clients’ losses by reducing CFD exposure and sensitivity to market volatility. Australia has been very pragmatically building in retail FX and CFD trading, and this industry has built a nice reputation in the country, how many things will be restricted. It doesn’t mean that fewer people will join the foreign exchange market because when some restrictions were happening in Japan, traders there actually knuckled down and traded even more volume.
Trading in Australia
Forex trading in Australia is a huge field. The country’s dollar had grown in importance in the global market. Forex trading has risen in popularity in the Australian market because the whole global market is interconnected. Foreign exchange in Australia is one of the best sectors that are fully protected. Forex trading in Australia is fully legal. A large number of the most trustworthy Australian brokers are interconnected with the foreign exchanges and they are taking the best from it.
There are two ways to trade in the country. One is City Index CFD and the other is Forex trading. Each has its own benefits.
Why trading is good in Australia
International trading and investments are helping the Australian economy. It is providing jobs and better quality of life for people. The foreign exchange market is a huge opportunity for Australians to expand their businesses and savings. Australia is participating in international organizations such as WTO. This is adding the chances for the region to have an attractive financial market. Australia is already attracting many investors and innovation in the country.
Australia has a very well developed financial market including debt, foreign exchange, and derivatives. Australia’s largest market is of course foreign exchange market. Currently, the Covid-19 pandemic has caused sharp falls in the process, but still, the AUD and USD is the most traded currency pair in the Australian market. It goes without saying that the Australian dollar represents the economic situation in the economy of Australia. The Australian dollar had a determined exchange rate until 1983.
The reason why the AUD has been popular since the 2000s is that Australia’s trading numbers have doubled in recent years. More and more Australians are finding themselves interested in the foreign exchange market each year. They are educating themselves in Australian online classes for trading lovers. After they have got enough knowledge of the trading scene, they are leaving their 9-5 jobs and are starting to be more included in the FX market. During the coronavirus pandemic, the unemployment rate has risen and people were stuck at their homes without anything to do. So, they tried to make money in the global market where one doesn’t need to be hired in order to work.
