LIMASSOL, Cyprus, June 22, 2016 /PRNewswire/ --
The Company Also Protects Clients From Potential High Volatility Risks Ahead of Brexit Vote by Hiking Margin Requirements for GBP and EUR Currency Pairs
Leading Limassol, Cyprus-headquartered online ECN foreign exchange (Forex) broker Vipro Markets has surprised Clients and the $5 trillion Forex market by announcing it will not charge commissions on all FX pairs during the Brexit week. Vipro Markets is a destination broker for some of the most sophisticated retail and institutional traders who generate large trading volume. Therefore any commission reduction or outright removal translates into thousands of dollars of immediate savings for such traders.
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Vipro CEO Valerijus Ovsianikas comments: "Vipro Markets has always had a mission to help our Clients succeed in trading. I believe that by offering commission-free trading during the Brexit week our Clients can cost-effectively improve their profitability whether they are active traders or hedgers."
Ovsianikas continues, "Our standard round trip ECN trading commission of just $4 per standard lot of $100,000 is already the lowest in the FX industry. By removing the trading commission in full for the Brexit week we give our Clients a competitive advantage not offered by other retail FX brokers."
The Company has also announced it has lowered the leverage on all GBP and EUR currency pairs as well as the UK100 stock index CFD for the same Brexit referendum week timeframe. The referendum is widely considered to be a high impact event for financial markets resulting most likely in higher volatility, potential price gaps/spikes, lack of liquidity, widened spreads and other unexpected market movements.
The margin requirement change will affect both new and existing orders of Company Clients. The standard leverage rates will be reduced until market close on June 24 as follows:
The Forex market's daily volume is around $5 trillion and major currencies such as the Euro and British pound rarely move more than 1% on a daily basis. However, many top tier banks providing liquidity to the interbank Forex market and also Vipro Markets have estimated that GBP crosses could move as much as 10% should Britain vote to leave the European Union.
Vipro CEO Valerijus Ovsianikas comments: "Vipro Markets has taken this unprecedented approach of lowering the standard leverage to protect our valued Clients from possible extreme market moves and therefore potential losses during Brexit week. Most small and medium size retail Forex traders use leverage of 1:100 to 1:500 which means a $1 million account could control a massive $100 million trading position. Such an account could be completely wiped out with just a 1% negative move in the underlying market. I believe our precaution to lower the maximum leverage will help our Clients weather the storm and exploit any emerging trading opportunities once the Brexit vote has passed and markets gradually return to normal trading conditions."
Ovsianikas adds: "Having been almost 20 years in the FX industry I believe the Brexit vote can result in extreme market moves similar to what we saw during the referendum on Scottish independence on September 18, 2014 and also the EUR/CHF Flash Crash that shocked the financial markets on January 15, 2015. We generally recommend that our Clients preemptively lower their risks during such high impact events as the outcomes and possible market directions are hard to predict and protect against. Having said that, should our Clients wish to trade during Brexit week then we are 100% committed to deliver uniquely robust, reliable and low-latency quality trade execution."
Vipro Markets focuses primarily on providing trading services in Forex and also CFDs based on global stock indices such as the DAX30, SP500, Nikkei 225 and others. The average spread on the most traded EUR/USD currency pair is 0.3 pips and the average execution speed is 200 milliseconds. The Company is also very pleased to offer one of the industry's lowest average spreads on WTI crude oil and precious metals including gold and silver. Vipro Markets uses state-of-the-art trading infrastructure with key trading servers located at Equinix LD4 data center in London and synchronized backup systems in New York. The Company's trading infrastructure can execute extremely high volume of trades simultaneously with high speed and accuracy.
Vipro operates a full STP (straight through processing) and NDD (no dealing desk) business model in accordance with its Investment Firm licence. This means all client trades and risk are automatically passed along to liquidity providers. The Company therefore has no conflict of interest with its clients and generates income solely from commissions and spreads.
About Vipro Markets:
Headquartered in Limassol, Vipro Markets Ltd is a global full STP ECN broker authorized and regulated by the Cyprus Securities and Exchange Commission (CySEC) with licence number 278/15. The Company has distinguished itself among ECN Forex brokers by providing top-notch trading services with low average spreads, industry-lowest ECN commissions and ultra-fast execution though its state-of-the-art London trading servers. Vipro Markets clients can trade FX, precious metals, WTI crude oil and many global stock indices through PC, Mac, iPad/iPhone and Android devices.
Trading in derivative financial instruments may not be suitable for everyone and we therefore advise clients to make themselves familiar with all the risks involved. Please review the Vipro Markets Client Agreement and other legal documentation available from Vipro Markets website before entering into any transaction with us.
For further information, visit https://www.vipromarkets.com or contact Vipro Markets on: +357 25247650.
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