Forex traders seeking new ways to play
Upon the limitations introduced by the Capital Markets Board (SPK) on forex trading, intermediary institutions have prepared a plan B. The said institutions that have shrunk their companies in Turkey are getting in touch with institutions abroad and will carry their customers out.
The Capital Markets Board's (SPK) decision to rearrange the leverage ratio as 10:1 and bring the collateral limit of TL 50,000 ($13,775) to the forex trading, where 80 percent of the traders lost all of their money in three months, has given a flip to the intermediary institutions, which provided about 40 percent of their income from this market. The forex traders that tried to create public pressure by laying off their staff, prepared a plan B when the possibility of a loose restriction weakened.
According to the information received, some of the intermediary institutions started to work with companies abroad. The said institutions want to make all of their current customer portfolio transactions from abroad when an agreement is reached with a company abroad. The manager of a forex company who wanted to remain anonymous, drawing attention to the the imposed minimum margin of TL 50,000, said they want to make an institution-based agreement so they do not miss out on the existing client base and that they want to continue the process, even from outside the country. The most important reason why forex companies are accelerating their quest abroad is the meeting with Deputy Prime Minister Nurettin Canikli last Thursday. Moreover, Canikli's tweet, "It is now clear that the SPK's regulations on the forex market are in place and rational," has clarified that they will not step back from the decision.
While intermediary institutions have been exploring forex trading since 2012, investors in this platform have been tricked by misleading advertisements, promising a leverage ratio at 100:1 as these advertisements did not mention the possibility of losing the minimum margin or being hit by a margin call.
While the SPK can no longer remain indifferent to the complaints of the victims coming to the agenda of the assembly, some circles still think that they are delayed. It is claimed that some forex companies are allegedly cheating investors by taking the opposite position and making adjustments on the screen basis.
Furthermore, the SPK continues to impose penalties on forex companies. According to a statement published in the SPK's Weekly Bulletin, a decision was made as a result of the investigation concerning Işık Menkul Değerler to impose a fine of TL 22,000, due to the fact that TL 26,000 is not revealed in the profit and loss account and the distribution of the customer accounts is not included in the advertisements for leveraged transactions. Moreover, Support Investment and Capital Real Estate Securities were also subject to administrative fines.
The Capital Markets Board's (SPK) decision to rearrange the leverage ratio as 10:1 and bring the collateral limit of TL 50,000 ($13,775) to the forex trading, where 80 percent of the traders lost all of their money in three months, has given a flip to the intermediary institutions, which provided about 40 percent of their income from this market. The forex traders that tried to create public pressure by laying off their staff, prepared a plan B when the possibility of a loose restriction weakened.
According to the information received, some of the intermediary institutions started to work with companies abroad. The said institutions want to make all of their current customer portfolio transactions from abroad when an agreement is reached with a company abroad. The manager of a forex company who wanted to remain anonymous, drawing attention to the the imposed minimum margin of TL 50,000, said they want to make an institution-based agreement so they do not miss out on the existing client base and that they want to continue the process, even from outside the country. The most important reason why forex companies are accelerating their quest abroad is the meeting with Deputy Prime Minister Nurettin Canikli last Thursday. Moreover, Canikli's tweet, "It is now clear that the SPK's regulations on the forex market are in place and rational," has clarified that they will not step back from the decision.
While intermediary institutions have been exploring forex trading since 2012, investors in this platform have been tricked by misleading advertisements, promising a leverage ratio at 100:1 as these advertisements did not mention the possibility of losing the minimum margin or being hit by a margin call.
While the SPK can no longer remain indifferent to the complaints of the victims coming to the agenda of the assembly, some circles still think that they are delayed. It is claimed that some forex companies are allegedly cheating investors by taking the opposite position and making adjustments on the screen basis.
Furthermore, the SPK continues to impose penalties on forex companies. According to a statement published in the SPK's Weekly Bulletin, a decision was made as a result of the investigation concerning Işık Menkul Değerler to impose a fine of TL 22,000, due to the fact that TL 26,000 is not revealed in the profit and loss account and the distribution of the customer accounts is not included in the advertisements for leveraged transactions. Moreover, Support Investment and Capital Real Estate Securities were also subject to administrative fines.