Leverage change without permission | Forex Factory

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Leverage change without permission

  • #1
  • First Post: May 22, 2016 3:51am May 22, 2016 3:51am
Is it legal for a broker to decrease thee leverage (from 1:400 to 1:200) for an account with open trades?
  • #2
  • May 22, 2016 4:31am May 22, 2016 4:31am
Quoting abuhashim
Is it legal for a broker to decrease thee leverage (from 1:400 to 1:200) for an account with open trades?
​bet you will find it in the small print mate ,
people leave, but this thread will go on for ever
  • #3
  • May 22, 2016 4:39am May 22, 2016 4:39am
read their rules again if you didn't find contact their support
  • #4
  • May 22, 2016 6:09am May 22, 2016 6:09am
Quoting abuhashim
Is it legal for a broker to decrease thee leverage (from 1:400 to 1:200) for an account with open trades?
check your agreement you sign i believe most brokers say they can change your leverage at any time
  • #5
  • May 23, 2016 8:27am May 23, 2016 8:27am
Yes,brokerage reserves the right for itself to decrease the leverage.
  • #6
  • May 23, 2016 8:44am May 23, 2016 8:44am
Quoting abuhashim
Is it legal for a broker to decrease thee leverage (from 1:400 to 1:200) for an account with open trades?

Yes it is. When your account reaches a certain amount & during weekends the leverage will be decreased
MY SITTING, NEVER MY THINKING!
  • #7
  • May 24, 2016 1:57am May 24, 2016 1:57am
It's obviously down to the policy of the company, i mean if you find it written on their TOS and such then you got to be fine with it, but if it's out of blue then obviously it's absolutely wrong and you should complain and seek for explanation. But, i haven't seen any broker which changes leverage like that without a logic behind it.
  • #8
  • Feb 9, 2017 4:26am Feb 9, 2017 4:26am
If you have signed their agreement document, it is a great possibility that your leverage can be changed without your permission.

But, if there is not agreement or if you haven’t agreed to any T&C online, I would recommend you to first confirm from your broker for the reason of change & if they don’t have specific explanation, make sure you speak for the wrong or the loss that you faced.

Make sure they give back the loss that you suffered.
  • #9
  • Feb 9, 2017 6:06am Feb 9, 2017 6:06am
Yes it is possible. Some brokers have that in T&C and some brokers have schedule for leverage decrease in regards to your current balance. Your best bet is to contact your broker and clear the doubts.
  • #10
  • Feb 9, 2017 9:15am Feb 9, 2017 9:15am
One such broker that has done this recently is Exness which I also work with, they have this rule of changing leverage 15 minutes before news and 15 minutes after news, which I really hate and one of the worst part here, but I guess you can’t do much about these things. At least, the thing is there in rules, I would be absolutely gutted if it was hidden or sudden change. So, I am okay if the broker gives out their TOS and if we are not happy then just don’t trade with them.
  • #11
  • Feb 16, 2017 10:33am Feb 16, 2017 10:33am
Quoting Fedricks
One such broker that has done this recently is Exness which I also work with, they have this rule of changing leverage 15 minutes before news and 15 minutes after news, which I really hate and one of the worst part here, but I guess you cant do much about these things. At least, the thing is there in rules, I would be absolutely gutted if it was hidden or sudden change. So, I am okay if the broker gives out their TOS and if we are not happy then just dont trade with them.
  • #12
  • Jul 9, 2020 3:41am Jul 9, 2020 3:41am
I had it happen the other way round. My leverage jumped from 30:1 to 400:1. Before 30:1 was the eu standard and the 400:1 was just for the professional account that you had to apply for. I did not ask for this is this allowed? P.S. I live in the U.K.
  • #13
  • Jul 9, 2020 5:26am Jul 9, 2020 5:26am
Quoting saffa747
I had it happen the other way round. My leverage jumped from 30:1 to 400:1. Before 30:1 was the eu standard and the 400:1 was just for the professional account that you had to apply for. I did not ask for this is this allowed? P.S. I live in the U.K.
Is your broker in the EU? You should talk to your broker as it seems that they've recategorised you as professional. You may not want to be categorised as professional as you'll lose benefits like negative balance protection.
  • #14
  • Last Post: Jul 13, 2020 1:40am Jul 13, 2020 1:40am
Quoting abuhashim
Is it legal for a broker to decrease thee leverage (from 1:400 to 1:200) for an account with open trades?
Well, yes it is a risk, because it increases margin requirement for open positions which may suddenly lead to insufficiency of margin and forced position liquidations. Unfortunately brokers can do that if they fear that an extremely price move can make their clients owe them. But thankfully it doesn't happen out of a sudden and you can usually spot the onset of bad volatility where you should start to worry.
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