Homepage > News > Regulatory changes in the Bahamas – from February 26, leverage 1:200

Regulatory changes in the Bahamas – from February 26, leverage 1:200

From February 26, the legal changes adopted in the middle of last year enter into force in the Bahamas. Until then, archipelago-registered brokers must finally withdraw from offering leverage of more than 1:200.

In just a few days, traders from the Bahamas will lose access to the 1:500 leverage. The new regulations require a margin of at least 0.5% on CFD products. Therefore, the leverage available with Caribbean brokers will be limited to 1:200.

In addition to these changes, a requirement is also introduced, according to which brokers will have to ensure that the client’s equity doesn’t drop by more than 50% as a result of one transaction. Furthermore, protection against negative balances will become mandatory. The new regulations, introduced by the Bahamas Securities Commission, also include a complete ban on selling binary options to retail clients. Just like in the European Union, brokers will not be able to attract clients with enticements and bonuses. Negative balance protection will be required and each company will have to appoint a compliance officer.

Brokers remind you of the changes

Some brokers have adapted to the changes earlier, but there are also those who use the old regulations until the last moment. One of the companies that chose the latter option is ActivTrades. In emails they sent to clients, the broker informed that the new regulations will apply to both new and existing positions from 23:00 CET on Sunday, February 28, 2021. If the trader wants to keep an open position, he has to review his trading account to ensure that there will be enough available funds to cover the higher margin requirements.

ActivTrades also reminded that the new SC rules allow the use of leverage of 1:400 for professional clients. Traders wishing to apply for this status have to certain eligibility criteria are met, including capital over USD 0.5 million, work in the financial sector and concluding a minimum of 10 large transactions per quarter.

Author: Izabela Kamionka

Are you a trader?

Help others and rate your broker! Use the search engine or find your broker on the list.


Last news:

xtb broker

XTB MENA receives the DFSA license

X-Trade Brokers, better known as XTB, has obtained a third-class license from the Dubai Financial ...
Read More
Cypriot financial regulator cysec

CySEC suspends the license of the parent company of the FXGM broker

The Cyprus Securities and Exchange Commission (CySEC) suspended the license of the investment company Depaho ...
Read More
the Chinese province will test the common welfare policy, i.e. redistribution of income

Will Chinese stocks disappear from the US stock markets?

W obliczu nowych regulacji związanych z audytami spółek zagranicznych notowanych na giełdach w USA, Chiny ...
Read More
SCAM Alert

Watch out for: “to recover funds, transfer us 10%”

Fake Forex brokers and their partners have developed another tactic for extorting client funds. It ...
Read More

Add a comment

Your email address will not be published. Required fields are marked *


Note: Opinions and posts on represent personal opinions and views of their respective authors and should not be interpreted as recommendations to purchase or sell securities. assumes no responsibility or liability for such content.
Go to top