What is ASIC?

ASIC is the Australian Securities and Investments Commission and is Australia’s Financial Services regulator.

What have they announced?

They have announced, amongst other measures, that they are restricting the leverage offered on CFD and Spread Trading products. You can read ASIC’s announcement here.

These new measures wil not impact wholesale clients who open a TradeDirect365 Pro account.  Wholesale clients may continue to trade with leverage up to 200:1 depending on the market instrument.

If you are interested in applying for a TradeDirect365 Pro account, please review the criteria here.

What does this mean?

This means that for retail clients the amount of money you need in your account to open and maintain positions is going to rise significantly.  

Margins and leverage 

The minimum margin requirement is the deposit you need to have in your account to place a trade. ASIC has announced that all minimum margin requirements must increase. As a result, the leverage on your positions is reduced.

Here’s an example based on Wall Street 30 Rolling Cash @ 30,000 

Product 

Stake 

Margin Now 

Margin After 

Wall Street 30 Rolling Cash 

$1 

$150 

$1500 

You will now need to hold $1,500 in your account to open this position. The new deposit requirement is 10 times larger than before. 

These higher margins will apply to all the products we offer. Here are some more examples: 

Market

Current Leverage

Current Margin RateNew LeverageNew Margin Rate
Major Indices

200:1

0.5%20:1

5.0%

Major FX pairs

200:1

0.5%30:1

3.33%

Individual Shares

  20:1

5.0%5:1

20.0%

Gold

200:10.5%20:1

5.0%

What are my choices?

TradeDirect365 will continue to offer a full service. But increased margin requirements and other regulatory changes come into force on Monday 29th March.

But if you would like to continue trading on your Single Currency Trading account with the same margins and conditions that you’re used to, you can open an account with our new brand, TD365.com.

TD365.com? Tell me more…

TD365.com is our new brand which lives alongside TradeDirect365.

At TD365.com now, and continue to enjoy:

    • The same trading platform.
    • The same low margin requirements.
    • The same low cost, fixed spreads.
    • The same friendly, customer service team.

Visit the TD365.com website to see for yourself by clicking here

This all sounds great, but I’ve got some more questions

I want to transfer to TD365.com, but I’ve forgotten my TradeDirect365 username/password

That’s no problem. If you’ve forgotten your username, simply get in touch with our customer support team on Live Chat on the platform or on support@tradedirect365.com.au and we will be able to provide that for you.

Where is my money held with TD365.com?

Your money is held in segregated client accounts at Barclays Bank in London.

Who is TD365.com regulated by?

TD365.com is regulated by the Securities Commission of the Bahamas.

How do I fund my new account?

The cash balance on your account will be moved over if you choose to transfer to TD365.com. If you need to add funds at any point, the deposit process is exactly as before, and you will be able to deposit via card, bank transfer, and Skrill.

What happens to my username and password?

You will be prompted to enter a new username and password when you sign up with TD365.com. Your TradeDirect365 username and password will remain unchanged.

Is the Trading platform the same?

The platform is very similar to the one you’re used to with the same tight fixed spreads and choice of markets.

Is there an app I can download?

Both iPhone and android apps are now available to download.

Why are you not able to transfer my CFD account?

At TD365.com we are only offering “Single Currency Trading” accounts where your positions and p/l are calculated in your account’s base currency.

What about demo accounts?

At TD365.com we have demo accounts to help you familiarise yourself with the platform, should you need to.

What happens to my trading history?

All your trading history on your TradeDirect365 account is available for you on request.

I have more than one account with TradeDirect365. What do I do?

You will need to fill in a TD365.com transfer form for each of your accounts, so just visit our page here and complete the short checklist.

I also have an MT4 account. What happens to that?

We won’t be able to transfer your MT4 account to TD365.com, but we will offer you the option to add one when your account is open.

Can you give me further details of these leverage changes?
Sure! The details of the changes to leverage, and associated minimum margin requirement percentages, are shown below:
Market

Current Leverage

Current Margin RateNew Leverage

New Margin Rate

Major Indices

200:10.5%20:1

5.0%

Major FX pairs

200:1

0.5%30:1

3.33%

Individual Shares

  20:1

5.0%5:1

20.0%

Gold

200:1

0.5%20:1

5.0%

Here’s an example:

Existing margins:

You buy $1 Wall Street 30 Rolling Cash @ 30,250.

Our minimum margin requirement percentage on the Wall Street 30 is 0.5%. This is the same as leverage of 200:1

The margin is calculated as follows: $1 x 30,250 x 0.5/100

So, you would need to hold $151.25 in your account to open this position.

Increased margins:

You buy $1 Wall Street 30 Rolling Cash @ 30,250.

Due to ASIC’s rule change, our minimum margin requirement on the Wall street 30 is now 5%, equivalent of leverage of 20:1

The margin is calculated as follows: $1 x 30,250 x 5/100

You now need to hold $1,512.50 in your account to open this position. The new deposit requirement is 10 times larger than before.