Online Forex Trading:Forex Magnates - Leverage in Japan to decrease to 1:50, consolidation on the horizon?
Article Summary:
By Oz Golan, Tradency for Forex Magnates
From August 1st all Forex brokers in Japan will be required to reduce their trading leverage to 1:50 by the FSA Japan (Financial Service Agency). The First effect will be
Article Content:
Leverage in Japan to decrease to 1:50, consolidation on the horizon?
By Oz Golan, Tradency for Forex Magnates
From August 1st all Forex brokers in Japan will be required to reduce their trading leverage to 1:50 by the FSA Japan (Financial Service Agency). The First effect will be on the retail users who will need to deposit more funds in order to trade the same positions they are holding. If they do not increase their funds, volumes are going to decrease and Brokers incomes will reduce accordingly. I speculate that these market conditions may create a financial challenges for Japanese Brokers, especially the mid – small size brokers who will not have enough capital to continue their marketing efforts to recruit new clients.
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