Dear Valuable Client,
Please note that due to the recent Notice of ESMA’s Product Intervention Decisions in relation to contracts for differences and binary options, EU regulated brokers, including Galactus Ltd, are obliged to implement a set of rules and restrictions in regards to the marketing, distribution or sale of – inter alia – CFDs to retail clients.
The measures that relate to the marketing, distribution or sale of CFDs include amongst others the below:
1. Leverage limits on the opening of a position by a retail client from 30:1 to 2:1, which vary according to the volatility of the underlying:
· 30:1 for major currency pairs;
· 20:1 for non-major currency pairs, gold and major indices;
· 10:1 for commodities other than gold and non-major equity indices;
· 5:1 for individual equities and other reference values;
· 2:1 for cryptocurrencies;
2. A margin close out rule on a per account basis.
3. Negative balance protection on a per account basis. This will provide an overall guaranteed limit on retail client losses;
4. A restriction on the incentives offered to trade CFDs; and
5. A standardised risk warning, including the percentage of losses on a CFD provider’s retail investor accounts.
Please note that the above measures will come into effect on the 1st of August 2018.
Our Company, as a CySEC regulated investment firm, is dedicated to the compliance with all applicable rules and legislations, including the above mentioned measures.