This article is originally referred from CentroFX News
Following CySEC’s recent Circular (C168) regarding the provision of CFDs and other speculative products to retail clients under MiFID we would like to inform you that CentroFX is obligated set the default leverage of all trading accounts as well as all instruments to 50:1.
Higher leverage will be available only upon client’s request and such request will be executed at CentroFX sole discretion, provided that the client has passed the CentroFX Appropriateness Assessment.
Clients that did not pass the Appropriateness Assessment are not eligible to request higher leverage.
We would like to clarify that the accounts of existing clients that maintain open positions and have been classified by CentroFX as non-appropriate will be affected by the new conditions (irrespective of the traded financial instruments), whereas appropriate clients will have the right to request their accounts, if they wish, to remain unaffected (i.e. keep their existing leverage level irrespective of the traded financial instruments).
Further to the above we would like to inform you that the trading conditions of CFDs on Gold will be forced to 2% margin (i.e. 50:1) at all times. This change will affect any open positions on the above instrument.
New conditions will come in force January 1st, 2017.
Original Source: CentroFX News