As one of the CySEC CySEC regulated brokers, FXTM has changed its leverage. As previously reported, CySEC ordered all brokers under its regulation to limit leverage. Accordingly, the  FXTM broker made changes to the maximum leverage offered.

FXTM will change the maximum leverage allowed from 1:1000 to 1:500. This change only applies to the forex; other instruments will not be affected. Client accounts with a leverage of 1:1000 will automatically change to 1:500. The change in leverage is effective from 15 February 2017. 

The changes are communicated in a circular that FXTM sends out to its clients. In the same circular it was also stated that for further information regarding changes in leverage and its impact on trading, customers can contact the FXTM broker's Customer Service via +357 2 555 8 777 or their respective Account Service Managers via email.

Various CySEC Rule Changes

CySEC has previously ordered brokers to limit leverage to 1:50 in the default setting. However, that does not mean that brokers cannot offer leverage of more than 1:50. Traders can still choose not to use the default leverage setting of 1:50 and take advantage of more leverage than that.

Not only limiting leverage, CySEC also prohibits any deposit bonus promotions. Promotional bonus offers are used to encourage trading activity on complex or speculative products, leaving traders vulnerable to risks. The company must also process client withdrawal requests within one day (same-day for client fund withdrawals). With these new regulations, companies are expected to act in accordance with the interests of clients.

CySEC seems to be tightening their rules. One of them is new rules for broker marketing practices that focus on sales tactics that are not too aggressive and misleading. In addition, CySEC is also submitting a standardization proposal for binary options trading. With these changes, client investments will receive more protection. So traders can invest more safely and comfortably. Previously,  the RoboForex broker also made changes to leverage according to CySEC regulations.