Category: News

Spain’s CNMV Implements Marketing Restrictions and Margin Requirements for Leveraged Products

Posted on by Adam Smith
CNMV

The Comisión Nacional del Mercado de Valores (CNMV), Spain's financial watchdog, has introduced new marketing restrictions and margin requirements for leveraged products. The European Securities and Markets Authority (ESMA) has published an opinion on these product intervention measures, supporting the CNMV's efforts to protect retail investors.

Under the new regulations, the CNMV prohibits the offering of training, technical seminars, courses, or sessions related to leveraged products, excluding turbos, to retail investors. The aim is to prevent misleading or inappropriate marketing practices. Additionally, advertising communications on contracts for difference (CFDs) targeting retail clients are strictly forbidden, including the sponsorship of events or organizations. The CNMV has also implemented restrictions on remuneration policies and cash deposits by customers.

  • The CNMV's intervention measures specifically target certain futures and options, categorized as "other leveraged products." These products are defined as financial instruments where the maximum amount at risk exceeds the initial investment or is unknown at the time of subscription. However, turbo products are exempt from these measures, as the total amount at risk is equal to the amount invested.
  • The newly implemented measures require providers of high-risk products to close a retail client's open positions when the value of the positions is reduced to half the initial margin. This aligns with the existing measures for CFDs. Furthermore, these high-risk products will be subject to the same initial margin protection as CFDs, with a potential exception for products with non-crypto asset underlyings if the trading venue permits a lower initial margin requirement.

ESMA acknowledges that the CNMV's measures do not include a "negative balance protection" provision. Instead, the CNMV aims to mitigate the risk of negative balances by applying margin close-out protection and initial margin protection, ensuring consistent and prudent account-level closure of positions. However, ESMA highlights that the CNMV allows for a lower amount of initial margin compared to the existing measures for products subject to lower margin requirements by trading venues.

ESMA agrees with the CNMV's assessment that other leveraged products bear similarities to CFDs and acknowledges the risks associated with crypto assets. The EU regulator will closely monitor whether these products pose detrimental consequences for retail clients similar to those observed with CFDs.

The CNMV's proposed marketing ban aligns with the existing 2019 CFD Resolution enacted by ESMA. It prohibits the provision of payments or benefits related to the marketing, distribution, or sale of CFDs to retail clients. ESMA has previously supported this restriction.

ESMA encourages other National Competent Authorities (NCAs) within the European Union to monitor potential risks and consider similar measures in their jurisdictions. NCAs may take product intervention measures but are required to notify ESMA and other NCAs at least one month before the intended implementation unless urgent action is necessary.

The CNMV's proactive approach to protecting retail investors and addressing risks associated with leveraged products demonstrates its commitment to ensuring the stability and integrity of the Spanish financial markets.

Vienna Stock Exchange Integrates Stock, Indices, and Funds Data into TradingView

Posted on by Adam Smith
Vienna Stock Exchange Integrates Stock, Indices, and Funds Data into TradingView

The Vienna Stock Exchange has joined the growing list of TradingView data providers.

The Vienna Stock Exchange is one of the oldest in the world, being in business since 1771. It operates the Prague stocks exchange, provides infrastructure for other European exchanges (in Budapest, Ljubljana, and Zagreb), and strives to strengthen financial education in the region by organizing workshops and seminars every year.

The exchange provides liquidity and visibility to its listed companies, while investors get access to the global financial markets as well as the local market: to help market players evaluate the latter, the exchange launched its main index, the Austrian Traded Index (ATX). Today, the exchange lists 817 companies and keeps adding more.

And now, data from the Vienna Stock Exchange is accessible on TradingView: open the symbol search, type in the “VIE:” prefix, and see all the stocks, indices, funds, bonds, depositary receipts, and warrants available for analysis.

The TradingView platform reliably connects to hundreds of data feeds, with direct access to 1,357,880 instruments from all over the world.

Retail Investors Concerned About Domestic Economic Slowdown, eToro Survey Reveals

Posted on by Adam Smith
Domestic Economic Slowdown

In a recent quarterly survey conducted by eToro, it was found that the primary concern among retail investors revolves around the slowdown of their domestic economies. This worry surpassed fears related to inflation and the impact of geopolitical conflicts. The survey, which encompassed over 10,000 retail investors across 13 countries and three continents, shed light on the sentiments prevailing among investors in the second quarter of 2023. Notable participating countries included the UK, the US, Germany, France, and Australia.

Despite central banks raising interest rates to combat inflation, the global economies showcased resilience throughout the year. This resilience has contributed to the surge in stock prices. However, many retail investors no longer perceive a strong market opportunity. According to the survey report, retail investors are now preparing themselves for an impending slowdown. Various metrics employed by eToro to gauge investor confidence experienced declines during the quarter. Confidence regarding the portfolio, the global economy, and the domestic economy dropped by five percentage points, settling at 71%, 40%, and 45%, respectively. (Read our comprehensive review of eToro)

eToro highlighted that "the threat of a home market recession surged to become the biggest perceived risk among global retail investors (18%), while far fewer identified inflation (17%) or international conflict (12%) as the top risks."

Furthermore, eToro noted that while retail investors were quick to purchase stocks after the market hit bottom in October 2022, the majority are now adopting a contrarian approach. This means that most investors do not believe in the "bull market narrative." In fact, only 11% of the surveyed investors believe that the markets have entered another bullish period.

Explaining this shift in strategy, eToro stated that retail investors are employing a "two-pronged 'barbell strategy'" by continuing to invest in successful tech companies while also seeking opportunities in underperforming commodity and bank stocks.

Despite the prevailing concerns, the survey revealed that a significant number of retail investors (31%) increased their investment portfolios during the last quarter, with only 12% decreasing their investments. Moreover, 31% expressed intentions to allocate additional funds to their investments over the next three months. Conversely, approximately 11% of respondents planned to reduce the size of their portfolios during the same period.

The survey conducted by eToro provides valuable insights into the sentiments of retail investors, highlighting their apprehensions regarding the slowdown in domestic economies. As these concerns overshadow worries about inflation and geopolitical conflicts, investors are adjusting their investment strategies accordingly to navigate the changing market landscape.

X Moves Towards Crypto Payment Services

Posted on by Adam Smith
X Moves Towards Crypto Payment Services

X, previously known as Twitter, is steadily progressing toward introducing financial services for its users, prominently featuring cryptocurrency payments. The recent announcement of a license acquisition in Rhode Island reinforces this development.

According to data provided by the Nationwide Multi-State Licensing System (NMLS), Rhode Island granted X the Currency Transmitter License on August 28, 2023. This license pertains to the transfer and receipt of financial funds, encompassing both traditional fiat currencies, such as dollars and euros, and cryptocurrencies like Bitcoin and Ethereum.

Consequently, with this license, X is now equipped to extend transfer, custody, and exchange services for digital assets to its expansive user base. This achievement aligns with Elon Musk's aspiration of evolving X into an 'everything app,' a vision reflective of the broader trend among social media magnates, increasingly venturing into the payment sector.

This Rhode Island license isn't X's maiden venture in this arena within the US. Previous licenses were secured in Michigan, Missouri, and New Hampshire in July, enabling X to offer its payment services across seven US states.

Although the precise timeline and manner of the crypto payment service's launch remain under wraps, industry insiders hint at its similarity to PayPal's offerings. A significant point of interest here is Musk's history as one of PayPal's co-founders, which may influence X's direction in this domain.

Earlier this year, X had expanded its financial services spectrum by integrating with the social trading platform eToro (Read our detailed article about eToro). This collaboration enabled users to trade stocks and other assets utilizing the $Cashtag symbol.

Orbex and HonorFX are Delighted to Announce Their Strategic Partnership Agreement, Marking an Expansion into the Asian Market.

Posted on by Adam Smith

[Dubai, September 2023] Orbex, a leading global forex broker, announced today that it has entered into a partnership agreement with HonorFX, a forex and CFD broker with offices in Dubai and Malaysia. As per the terms of the new agreement, Orbex will grant HonorFX access to its acclaimed suite of trading products and services.

The partnership will enable Orbex to cement its position as one of the leading brokers in the MENA region and expand its presence in Asia and beyond. This strategic move will not only enhance Orbex's already impressive growth trajectory but also expand the range of trading opportunities available to its growing client base. At the same time, HonorFX clients will be able to benefit from Orbex's multi-regulated and award-winning trading environment.

It’s also worth noting that HonorFX clients were duly notified of the decision and the migration process is now reportedly underway. The move will give HonorFX clients access to some of the most competitive terms in the industry such as low trading costs, exclusive analytical tools, expert education, and access to trade over 400 trading CFD instruments including forex pairs, stocks, indices, cryptocurrencies, energies, metals and more.

Orbex Chairman Abdallah Abbas expressed his enthusiasm for the partnership, stating, "We are thrilled to extend a warm welcome to HonorFX clients as they become part of our Orbex family. We are confident that this collaboration will further elevate our competitive position and empower us to provide an array of exclusive advantages to traders worldwide. We eagerly anticipate collaborating with HonorFX and assisting their clients in reaching their trading objectives! As we embark on this journey of integration with our esteemed partners at HonorFX, it is imperative to clarify that our valued Orbex clients can expect their trading experience to remain seamless and unaffected throughout this process.

About Orbex

Orbex Global Ltd is a leading global investment services firm that provides traders with award-winning forex and CFD trading services with some of the most competitive conditions. Since its inception in 2011, Orbex has committed to providing access to first-in-class trading and investing solutions that are backed by leading education, expert research tools and the 24/5 multi-lingual support.

HFM Introduces Copy Cent Account for Copy Trading

Posted on by Adam Smith
HFM Copy Cent Account for Copy Trading

HFM, a renowned global multi-asset broker, has announced that the Cent Account is now available for Copy Trading. Copy Cent is available to both Followers and Strategy Providers who have joined HFcopy Trading. Traders have the option to track their preferred Strategy Providers and initiate trade replication with only a few cents.

Why open a Copy Cent account:

  • Copy other traders with minimal funds.
  • Diversify your trading portfolio by allocating cents across various traders and markets.
  • Explore different trading strategies and markets.
  • Test and fine-tune your trading strategies with less capital. 

For more information about the advantages of the Copy Cent account visit the HFM website.

About HFM

HFM, previously recognized as HotForex, stands as the brand under HF Markets Group. This globally recognized multi-asset broker serves a diverse clientele of more than 3.5 million active accounts worldwide. Accumulating a remarkable track record spanning twelve years, HFM has secured over 60 esteemed industry awards. The company provides a range of account options, inventive products, platforms, tools, and educational materials. Alongside exceptional customer support, it offers unmatched trading conditions to facilitate individuals and institutional customers to trade Forex and CFDs online.

Orbex Introduces New Prepaid Card and Orbex Card App

Posted on by Adam Smith
Orbex Introduces New Prepaid Card and Orbex Card App

Orbex, a leading global financial services broker, has recently launched the Orbex Prepaid Card and Orbex Card app, catering specifically to its live account traders. This new offering by the broker is now accessible to clients residing in the Gulf Region, encompassing Bahrain, Kuwait, Oman, Qatar, Saudi Arabia, the United Arab Emirates, and also to all clients residing in Palestine.

As mentioned on the broker's website, the recently introduced Orbex Prepaid Card offers traders a convenient means to access and oversee their trading accounts and balances. Moreover, it provides traders with the flexibility to make online or in-store payments, conduct international money transfers, and conveniently withdraw trading funds and profits as cash from ATMs worldwide.

Prospective and current clients of Orbex who maintain a funded account now have the opportunity to apply for an Orbex Prepaid Card through their myorbexarea dashboard. To enhance convenience, they can download the Orbex Card app on their mobile devices from either the App Store or Google Play. Orbex offers an extremely competitive annual fee structure, starting as low as $0 per year for Ultimate Account holders. The Orbex Prepaid Card encompasses several notable features, such as:

  • Global ATM cash withdrawals.
  • Instant transfers to and from the client's Orbex card.
  • Online or in-store payments using the physical Orbex card or Apple Pay and Google Pay.
  • Instant deposits to Orbex trading accounts or wallets via the MyOrbex dashboard using the Orbex prepaid card.
  • Easy top-ups and quick deposits to trading accounts through the Orbex Card app.
  • Bank transfers to the client's personal account or to other recipients.

Orbex Chairman, Abdallah Abbas, expressed his thoughts on the recent introduction of the Orbex Prepaid Card and Orbex Card app, stating:

"At Orbex, we are embarking on a new phase of growth and innovation, encompassing global expansion, regulatory compliance, and the introduction of groundbreaking products that exceed our clients' expectations. The launch of the Orbex Prepaid Card represents a significant milestone for our company and its offerings. We recognize the importance for our clients to have swift and effortless access to their funds and hard-earned trading profits. Through the Orbex Card and App, our clients now have complete control over their trading balances, enabling them to enjoy instant transfers, top-ups, and even cash withdrawals at any time and from anywhere across the globe."

About Orbex

Established in 2011, Orbex Global Ltd stands as a prominent global investment services firm renowned for delivering top-notch forex and CFD trading services. With a steadfast dedication to excellence, Orbex offers traders highly competitive conditions and has garnered recognition through various prestigious awards. The company is committed to granting access to cutting-edge trading and investing solutions, bolstered by a wealth of educational resources, advanced research tools, and round-the-clock multilingual support, ensuring a comprehensive and exceptional trading experience for its clients.

Pepperstone launches Spread Betting on TradingView

Posted on by Adam Smith

Pepperstone launches spread betting on the Social charting platform TradingView

Pepperstone launches spread betting

Australia-based Forex and CFD broker Pepperstone has recently introduced "tax-free" spread betting for its users on TradingView, a platform that the broker integrated with early last year. According to the statement by the broker, from now on traders from the UK will have the opportunity to spread bet on different market instruments such as forex, commodities, indices, and shares directly on TradingView.

Pepperstone, which is in fact regulated by FCA, will enable its UK customers to access Spread Bet on the aforementioned instruments on TradingView's highly customizable charts which remove the need to "screen switch" while spread betting. (Read Why Trade with UK FCA Brokers)

“We were delighted to be named Broker of the Year earlier this year. At Pepperstone, we are client-obsessed, so being acknowledged for providing the best TradingView client experience was a real honour. The launch of spread betting in the UK now completes Pepperstone’s superior TradingView package, enabling our clients to trade the way they want to trade on the platform.”, said Tomas, Pepperstone Group CEO.

The integration of Pepperstone’s spread betting into TradingView specifically for UK traders seems to be a well-calculated strategic step. In the previous year, Pepperstone experienced a noteworthy surge in pre-tax profits from its operations in the UK, more than doubling to reach £4.6 million. Furthermore, the broker witnessed a substantial 36% increase in trading revenue, amounting to £10.7 million, over the course of the fiscal year that concluded on June 30th, 2022.

Top Brokers with Lightning-Fast Execution for Gold Trading

Posted on by Adam Smith

In the world of gold trading, speed can be the ultimate game-changer, and choosing a broker with swift order execution can significantly impact traders' success. After an exhaustive evaluation of the leading brokers in the industry, BlackBull Markets has emerged as the standout performer, offering unparalleled execution speed for gold trades, making it the preferred choice for traders seeking efficiency in this precious metal market.

The Importance of Order Execution in Gold Trading

In the realm of the gold market, swift price fluctuations are the norm, and executing trades at the right moment can determine the line between profitable trades and missed chances. Whether traders are employing scalping strategies or depending on automated systems, quick order execution guarantees the ability to enter and exit gold positions swiftly. This approach diminishes the possibility of slippage and optimizes the potential for profits.

Findings from Gold Trading Execution Speed Testing

Through a comprehensive examination of brokers specializing in gold trading, we assessed the speed of executing market orders. Our objective was to pinpoint the broker consistently offering the swiftest execution, thereby granting traders a notable advantage in the gold market. Following meticulous testing, BlackBull Markets emerged as the unequivocal leader, showcasing a remarkable average execution speed for gold market orders that surpassed all competitors. Its steadfast dedication to rapid execution positions it as a leading choice for traders in search of a dependable ally in the realm of gold trading.

Here's a glimpse of the average execution speeds for gold market orders among the brokers tested:

  • BlackBull Markets: 20.587 milliseconds
  • XM: 35.488 milliseconds
  • FXPro: 47.653 milliseconds
  • Admiral Markets: 85.559 milliseconds
  • Easy Markets: 104.461 milliseconds
  • Fusion Markets: 92.166 milliseconds
  • FP markets: 87.665 milliseconds
  • Pepperstone: 30.698 milliseconds
  • Eightcap: 276.66 milliseconds
  • IC Markets: 356.69 milliseconds

Testing Methodology for Gold Trading Execution Speed

To ensure the accuracy and relevance of our findings, our testing focused on the popular gold trading pair XAU/USD. We executed a total of ten buy and ten sell orders for 1 lot each of XAU/USD at regular intervals throughout a typical trading day.

By simulating real-time trading conditions, our methodology captured the brokers' execution speeds accurately. Utilizing standardized order sizes and a common gold trading pair created a level playing field for all brokers tested.

Throughout the testing period, we recorded the time taken for each gold order to be executed, measuring the order execution time from submission to confirmation. This data allowed us to calculate the average execution speed for each broker.

Conclusion

In the competitive world of gold trading, BlackBull Markets shines as a top choice for traders seeking lightning-fast execution, followed by Pepperstone and XM. With its industry-leading execution speeds, traders can seize time-sensitive opportunities and optimize their gold trading strategies with minimal slippage.