Admiral Markets Australia Implements Negative Balance Policy

Admiral Markets Pty Ltd, the Australian subsidiary of Admiral Markets Group AS, announced on Friday that it has added a Negative Balance Negative Balance In its most basic form, a negative balance represents an account balance in which debits exceed credits. A negative balance indicates that the account holder owes money. A negative balance on a loan indicates that the loan has not been repaid in full, while a negative bank balance indicates that the account holder has overspent.In the retail brokerage space, this phenomenon occurs when a position’s losses in an account exceeds the available margin on hand from a given trader. When a trader place In its most basic form, a negative balance represents an account balance in which debits exceed credits. A negative balance indicates that the account holder owes money. A negative balance on a loan indicates that the loan has not been repaid in full, while a negative bank balance indicates that the account holder has overspent.In the retail brokerage space, this phenomenon occurs when a position’s losses in an account exceeds the available margin on hand from a given trader. When a trader place Read this Term protection policy - despite it not being mandatory in Australian regulations.

In the European Union, thanks to Regulation Regulation Like any other industry with a high net worth, the financial services industry is tightly regulated to help curb illicit behavior and manipulation. Each asset class has its own set of protocols put in place to combat their respective forms of abuse.In the foreign exchange space, regulation is assumed by authorities in multiple jurisdictions, though ultimately lacking a binding international order. Who are the Industry’s Leading Regulators?Regulators such as the UK’s Financial Conduct Authority ( Like any other industry with a high net worth, the financial services industry is tightly regulated to help curb illicit behavior and manipulation. Each asset class has its own set of protocols put in place to combat their respective forms of abuse.In the foreign exchange space, regulation is assumed by authorities in multiple jurisdictions, though ultimately lacking a binding international order. Who are the Industry’s Leading Regulators?Regulators such as the UK’s Financial Conduct Authority ( Read this Term from the European Securities and Markets Authority (ESMA) contracts for difference (CFD) providers are required to limit the losses a retail client can sustain by imposing automated negative balance protection.

Basically, it ensures that a trader doesn’t lose more money than the balance on their account. This is even in instances where the market moves quickly.

While this is now a requirement for retail brokers in Europe, it is not a requirement in Australia. Nonetheless, Admiral Markets has said that as of October 11, 2018, it will relieve clients of their repayment obligations should their balance fall below zero by returning the negative balance below zero.

The Policy Will Be Applied At Admiral Markets' Discretion

It should be noted that this will be done at the firm’s discretion - so it may not be applied in all applicable situations - and will only be available for balances ranging from zero to negative AU$100,000 ($71,086). According to the statement from the broker, the move aims to protect its clients from falling into debt due to unsuccessful trades.

Commenting on the development, the CEO of Admiral Markets Pty Ltd., Cristian Moreno, said: “although negative balance protection is not an Australian regulatory requirement, we are proud to be leading the way with this initiative."

“Our new negative balance policy will help give retail clients the peace of mind they need to trade confidently, and is just one of the ways we support our clients’ investment journey.”

The Co-CEO of Admiral Markets Group AS, Jens Chrzanowski, added: “as a global company, Admiral Markets feels that the success of our clients is paramount."

“When our clients succeed, we succeed! Negative balance policies help ensure they have the best possible trading experience, and the entire Admiral Markets Group is proud to see the Australian subsidiary taking the initiative to voluntarily add this policy to their offering.”