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Turkey to stop residents trading with retail FX brokers not licensed by CMB

Chris Hamblin, Editor, London, 11 July 2017

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A directive posted in Turkey's Official Gazette proposes to ban Turkish residents from holding accounts or trading leveraged foreign exchange products with certain foreign brokers, according to Leaprate.com.

The signature on the letter that contains the new regulations in the gazette is that of President Erdogan, accoring to the website. It reportedly aims to exclude foreign brokers not licensed by the country’s Capital Markets Board from trading leveraged forex products or contracts for differences on behalf of Turkish HNWs.

The website adds that Turkish restrictions on leveraged trading, especially in forex, have become so stringent lately that Copenhagen based multi asset broker Saxo Bank announced recently that it had decided to end operations through its Turkish subsidiary. XTB, a Polish forex brokerage, announced its intention to leave in May as a result of regulatory updates from the Capital Markets Board.

In February the CMB changed the rules for all leveraged products, increasing the minimum deposit size to 50,000 lira (€12,156). The regulator also cut the maximum leverage rate for any leveraged product from 100:1 to 10:1.

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