Trading 212 Margin Call

Adam Rosen - Lead financial writer

Updated 24-Oct-2024

Trading 212 Margin Call

When the amount of equity in your Trading 212 trading account drops below a predetermined threshold, you will receive a Trading 212 margin call. If this occurs, you will need to add additional funds to your Trading 212 account in order to compensate for any potential losses.

A stop order is one of the safeguards that can be implemented to prevent Trading 212 margin calls from occurring. Not only inexperienced traders but also more seasoned Trading 212 investors can benefit greatly from the utilisation of stop orders because they function similarly to an insurance policy.

If your Trading 212 account's margin falls below this figure, the Trading 212 may issue a margin call, in which case they will request that you bring the account back up to a level where it is above the minimum required margin for the account.

The Trading 212 margin call occurs when an investment has a Trading 212 margin balance that is lower than the required minimum by the broker.

Trading 212 margin call percentage

When an investor's Trading 212 margin account falls below a predetermined threshold due to losses sustained by an Trading 212 investment, the investor is subject to what is known as a Trading 212 margin call. When a Trading 212 margin call occurs, the brokerage will request that additional funds or securities be added to the margin account in order to get back above the level that is known as the Trading 212 maintenance margin.

When using a Trading 212 margin account, both the investor and the Trading 212 broker begin their investment in the securities with the same amount of money. It is only natural that this would shift up and down in tandem with the Trading 212 traded asset price. The maintenance margin is the minimum amount of an investor's own money that must be held in the Trading 212 account at any given time. It is expressed as a percentage.

When you have a margin call on your Trading 212 brokerage account, the sooner you pay the required amount to Trading 212, the better off you will be. Brokers like Trading 212 have no incentive to assist you in placing money back into the Trading 212 account or to give you more time to locate the funds, so they may not do either of those things. Their own bottom line serves as an incentive for Trading 212, which is why margin calls are made by Trading 212 in the first place.

Acquiring Knowledge of Trading 212 Margin Calls

A margin call is issued to the respective Trading 212 investor by the broker when the balance in the investor's Trading 212 margin account falls below the required minimum margin. A Trading 212 margin call is a demand made by the broker to a Trading 212 customer that requires the customer to make additional deposits into their Trading 212 account or sell some of the securities in their Trading 212 portfolio in order to meet the demand.

In the event that the client does not respond to the Trading 212 margin call, Trading 212 may sell some of the customer's securities in order to bring the Trading 212 account back up to the minimum acceptable level.

There is no guarantee that a customer will receive a margin call from Trading 212, which would require them to add more money to their Trading 212 account. Trading 212 might instead sell some of the customer's securities in order to bring the Trading 212 account back up to the maintenance margin without first notifying the customer.

Buying on Trading 212 margin

When you buy on margin, you use the money from your Trading 212 broker to purchase a greater quantity of securities than you have available funds to purchase. Make sure you have a solid understanding of what it means to buy on margin with Trading 212, as well as what you need to do if you do not have the financial means to do so, before you go ahead and open a Trading 212 margin account.

The difference between the value of the assets held by the Trading 212 brokerage and the amount of money borrowed from the Trading 212 broker is what is referred to as the margin account. Typically, Trading 212 will determine a minimum required value for a fixed amount that the portfolio must hold. A Trading 212 margin call is issued by the brokerage firm whenever the equity drops below the Trading 212 maintenance margin.

If a trader does not keep the required Trading 212 minimum balance in their Trading 212 trading account or the required maintenance margin, Trading 212 will sell their position. Brokerage firms like Trading 212 will sometimes employ this strategy in order to protect themselves from the defaults of their customers. In order to fulfil the requirement for collateral, the trader is required to place a cash deposit with Trading 212 equal to the minimum required amount.

Trading 212 Maintenance Margin Requirements

A message that alerts Trading 212 traders to the necessity of keeping the required Trading 212 minimum balance, also referred to as maintenance margin, in their Trading 212 accounts is called a margin call.

The closing of the Trading 212 margin

Check out the margin level on your Trading 212 trading platform; this will tell you how much money you are shelling out to Trading 212 in order to safeguard yourself against the possibility of incurring losses. Every Trading 212 trader who uses margin has what's called a margin close out level, which indicates how much money the trader has lost or gained as a result of using Trading 212 margin.

When and why do Trading 212 margin calls take place in a transaction?

If a Trading 212 investor borrows money from their brokerage to purchase leveraged stocks, Forex, commodities or other financial instrument, there is a possibility that their Trading 212 margin account will be subject to a margin call. It is not necessary to make use of any Trading 212 borrowed funds in order to have a margin account; however, investors who do make use of Trading 212 borrowed funds will be subject to interest payments on those Trading 212 margin funds.

When the value of an investor's Trading 212 account drops below the minimum maintenance margin required by th Trading 212 firm, or when a margin call occurs, the investor will receive a Trading 212 margin call. In situations involving calls for Trading 212 margin, the ratio of investor equity to the market value of the securities held in the Trading 212 account is the most important consideration.

Who Determines What the Trading 212 Minimum Maintenance Margin Should Be?

Multiple entities, including the financial regulators and brokerages like Trading 212, are responsible for determining the minimum required for Trading 212 maintenance margins. There is also a possibility that Trading 212 will require higher house maintenance margins. Depending on the requirements of the traded industry on Trading 212 and the exchange, individual brokerages like Trading 212 may typically establish higher minimums, ranging from 10 percent to 40 percent.

House minimums are subject to the brokerage's discretion and may be adjusted at any time without prior notification. Minimums can also change depending on the underlying stock. For example, if a specific stock suddenly becomes more volatile, brokerages may respond by rapidly increasing their maintenance margin limits.

The majority of brokerages will give investors between four and five business days to complete any necessary maintenance tasks. An exchange call will be made in the event that the account falls below the minimum required by the exchange.

A Guide to Staying Ahead of a Margin Call

The simplest way to stay away from a margin call is to simply not open a margin account in the first place. When things go wrong, buying on margin is one of the riskiest ways to invest specifically because it magnifies losses. This makes buying on margin one of the riskiest ways to invest. Therefore, if you want to avoid the difficulties of a margin call, the easiest way to do so is to refrain from opening any margin accounts.

But there are ways that you can lessen the impact of the risk as much as you possibly can. In the event that you are confronted with a margin call, ensure that you have money and/or other assets that can be easily liquidated saved away.

Choosing investments that are inherently less risky is yet another strategy that can be utilised in an effort to reduce the likelihood of being subjected to a margin call. Due to the fact that they are much less volatile, bonds do not have nearly the same potential for growth as stocks do. In a market decline, they are also less likely to experience a decline of the same magnitude as stocks can.

Trading 212 Borrowed money should not be used in any way

Avoiding a Trading 212 margin call can be accomplished in the most straightforward manner by avoiding the use of Trading 212 borrowed money to purchase financial instruments like stocks, currencies, crypto, commodities and indices on Trading 212. Limiting Trading 212 purchases to only be made with funded cash that is already in the Trading 212 account. Investors are not required to use the Trading 212 account in a margin trading capacity, despite the fact that many brokers like Trading 212 will want to set up new accounts as margin trading accounts right from the start.

Make Your Trading 212 Margins Narrower Than the Absolute Maximum

There is no requirement for Trading 212 to permit an investor to use borrowed funds for up to fifty percent of the total Trading 212 transaction amount; however, the Trading 212 may choose to do so. An Trading 212 investor would still receive some of the benefits of margin (extra buying power), but they would do so with a Trading 212 larger equity buffer if they used Trading 212 borrowed funds to the extent of 10 percent.

Avoid Volatile Trading 212 Securities

A potential reduction in the risk of Trading 212 margin calls can also be achieved by avoiding volatile securities on the Trading 212 trading platform. It is also possible to reduce risk by holding Trading 212 securities with inverse correlations. However, there is a risk associated with this strategy, and that risk is that the correlations of assets that are uncorrelated or inversely-correlated can change rapidly during times of significant market volatility with Trading 212.

Keep a close eye on your various margin accounts

The purpose of Trading 212 margin calls is to protect the interests of the Trading 212 brokerage as well as the trader. Waiting until a Trading 212 margin call to act of negative or low Trading 212 trading balances is not good. Trading 212 investors should keep a close eye on their respective accounts.

When do the Trading 212 margin calls begin to be issued?

Brokerages like Trading 212 have the authority to issue margin calls, also known as Trading 212 demands for immediate satisfaction, and Trading 212 may choose to do so during times of heightened market volatility. When the amount of equity in an investor's Trading 212 account drops below a certain minimum threshold, the majority of brokerages like Trading 212 are required to notify the investor of a margin call before trading begins each morning.

When trading with Trading 212, do you have to worry about margin calls?

On the US stock market, an investor may use margin trading to buy and sell options; however, the investor must have available cash to serve as collateral. In the event that the investor's position moves against them, they may receive a margin call requesting additional cash or securities so that the equity ratio can be restored.

Is there a difference between a Trading 212 margin call and liquidation?

The failure of a broker to meet a margin call can result in the broker's business being liquidated. When a brokerage firm exercises its right to sell securities held in a margin account in order to satisfy a margin call, this practise is referred to as "liquidation." However, this is not the same as missing a margin call because there was not enough money in the account.

How to Meet a Trading 212 margin call obligation

The Trading 212 margin call equals the difference between what is required and what you currently have in your Trading 212 balance. If this occurs, you will be required to make the necessary deposits to Trading 212 in order to continue trading using your margin with Trading 212.

The Consequences of Ignoring a Trading 212 Margin Call for Your Investment

Trading on margin can make you look like a genius if you make profits, but if you suffer substantial losses, it can be disastrous for your financial situation. A margin call is a time bomb that could explode at any moment, and it's unlikely that your broker will grant you an extension. In the event that this takes place to you, you are going to want to sell those stocks as soon as possible.

If you have a margin account of $250,000 and someone fails to make their margin call, they could suddenly be responsible for six figures worth of debt. When an investor is unlucky enough to have their margin call missed, that is just the beginning of their string of losses. The losses that you incurred during this time period may then turn into debt that you are responsible for paying.

If you are unable to repay the debt you owe to a brokerage, this can have extremely severe repercussions. It is possible that an investor who has multiple accounts at that brokerage will be required to sell the assets that are held in those accounts. It's possible that you'll have to liquidate stocks and other securities held at other brokerages in order to pay off the debt.

Your debt is going to be reported to the various credit agencies by the brokerage, and as a result, your credit score is going to take a significant hit. If you have a low credit score, it may be difficult to get approved for loans or open a margin account in the future, even if you decide you want to try doing either of those things.

And even if all of that damage is done to you, there is still the distinct possibility that a brokerage will file a lawsuit against you, which will consume a significant amount of time and money.

How Do The Trading 212 CFD Margin Compare Against Other Brokers?

  • Trading 212 Broker CFD Margin

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  • IC Markets Broker CFD Margin

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    IC Markets CFD stocks: 110
    IC Markets US CFD stocks: Yes
    IC Markets UK CFD stocks: Yes
    IC Markets CFD Indices: 25
    IC Markets Commodity CFD: 20
    IC Markets ETF CFD: 30
    IC Markets Forex CFD: Yes

    🀴 IC Markets is Used By: 180,000
    ⚑ IC Markets is Regulated by: Australian Securities and Investments Commission (ASIC), Financial Services Authority (FSA), Cyprus Securities and Exchange Commission (CySEC)

    πŸ’΅ What You Can Trade with IC Markets: Forex, Majors, Energies, Metals, Agriculturals,
    πŸ’΅ Instruments Available with IC Markets: 232

    πŸ“ˆ IC Markets Inactivity Fees: No
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    πŸ’° IC Markets Account Base Currencies: USD, GBP, EUR, CHF, JPY, SGD, AUD, CAD, HKD, NZD

    IC Markets Risk warning : Losses can exceed deposits

  • Roboforex Broker CFD Margin

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    Roboforex CFD stocks: 8,400
    Roboforex US CFD stocks: Yes
    Roboforex UK CFD stocks: Yes
    Roboforex CFD Indices: 30
    Roboforex Commodity CFD: 20
    Roboforex ETF CFD: 50
    Roboforex Forex CFD: Yes

    🀴 Roboforex is Used By: 10,000
    ⚑ Roboforex is Regulated by: Financial Services Commission (FSC) License 000138/437

    πŸ’΅ What You Can Trade with Roboforex: Forex, Minors, Majors, Exotics, Indices, Metals,
    πŸ’΅ Instruments Available with Roboforex: 100

    πŸ“ˆ Roboforex Inactivity Fees: No
    πŸ’° Roboforex Withdrawal Fees: Yes
    πŸ’° Roboforex Payment Methods: Credit cards, VISA, MasterCard, JCB, Debit cards, Bank Transfer, Electronic wallets (eWallets), Neteller, Skrill, Perfect Money, AdvCash, BPAY, China UnionPay, FasaPay, CashU, WeChat Pay, ecoPayZ, AstroPay, Sofort, Giropay, Poli, Wepay, iDEAL, Payoneer,
    πŸ’° Roboforex Account Base Currencies: USD, EUR, XAU

    Roboforex Risk warning : Losses can exceed deposits

  • AvaTrade Broker CFD Margin

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    AvaTrade CFD stocks: 625
    AvaTrade US CFD stocks: Yes
    AvaTrade UK CFD stocks: Yes
    AvaTrade CFD Indices: 32
    AvaTrade Commodity CFD: 27
    AvaTrade ETF CFD: 59
    AvaTrade Forex CFD: Yes

    🀴 AvaTrade is Used By: 200,000
    ⚑ AvaTrade is Regulated by: Central Bank of Ireland, Australian Securities and Investments Commission (ASIC), Financial Services Authority (FSA), South African Financial Sector Conduct Authority (FSCA), Financial Stability Board (FSB), Abu Dhabi Global Markets (ADGM), Financial Regulatory Services Authority (FRSA), British Virgin Islands Financial Services Commission (BVI)

    πŸ’΅ What You Can Trade with AvaTrade: Forex, Minors, Cryptocurrencies, Majors, Exotics, Indices, UK Stocks, US Stocks, Energies, Metals, Agriculturals, ETFs, IPO, Bonds,
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    πŸ“ˆ AvaTrade Inactivity Fees: No
    πŸ’° AvaTrade Withdrawal Fees: No
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    AvaTrade Risk warning : 71% of retail CFD accounts lose money

  • FP Markets Broker CFD Margin

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    FP Markets CFD stocks: 9,000
    FP Markets US CFD stocks: Yes
    FP Markets UK CFD stocks: Yes
    FP Markets CFD Indices: 14
    FP Markets Commodity CFD: 6
    FP Markets ETF CFD: 250
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    🀴 FP Markets is Used By: 10,000
    ⚑ FP Markets is Regulated by: Australian Securities and Investments Commission (ASIC), Cyprus Securities and Exchange Commission (CySEC), Financial Services Authority (St. Vincent and the Grenadines)

    πŸ’΅ What You Can Trade with FP Markets: Forex, Minors, Majors, Exotics, Indices, Metals,
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    πŸ’° FP Markets Account Base Currencies: USD, GBP, EUR, CHF, JPY, SGD, AUD, CAD, HKD, NZD

    FP Markets Risk warning : Losses can exceed deposits

  • NordFX Broker CFD Margin

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    NordFX CFD stocks: 65
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    NordFX CFD Indices:
    NordFX Commodity CFD: 20
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    🀴 NordFX is Used By: 10,000
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    πŸ’΅ What You Can Trade with NordFX: Forex, Majors, Metals,
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  • XTB Broker CFD Margin

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    XTB CFD stocks: 1,800
    XTB US CFD stocks: Yes
    XTB UK CFD stocks: Yes
    XTB CFD Indices: 42
    XTB Commodity CFD: 22
    XTB ETF CFD: 114
    XTB Forex CFD: Yes

    🀴 XTB is Used By: 250,000
    ⚑ XTB is Regulated by: Financial Conduct Authority (FCA), FCA number FRN 522157, Cyprus Securities and Exchange Commission (CySEC), CySEC Licence Number: 169/12, Comision Nacional del Mercado de Valores, Komisja Nadzoru Finansowego, Belize International Financial Services Commission (IFSC) under license number IFSC/60/413/TS/19, Polish Securities and Exchange Commission (KPWiG), Dubai Financial Services Authority (DFSA), Dubai International Financial Center (DIFC),Financial Sector Conduct Authority (FSCA), XTB AFRICA (PTY) LTD licensed to operate in South Africa

    πŸ’΅ What You Can Trade with XTB: Forex, Minors, Cryptocurrencies, Majors, Exotics, Indices, UK Stocks, US Stocks, Pennystocks, Energies, Metals, Agriculturals, ETFs,
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    πŸ“ˆ XTB Inactivity Fees: Yes
    πŸ’° XTB Withdrawal Fees: No
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    πŸ’° XTB Account Base Currencies: USD, GBP, EUR

    XTB Risk warning : 76% - 83% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

  • Pepperstone Broker CFD Margin

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    Pepperstone CFD stocks: 253
    Pepperstone US CFD stocks: No
    Pepperstone UK CFD stocks: No
    Pepperstone CFD Indices: 14
    Pepperstone Commodity CFD: 16
    Pepperstone ETF CFD: 250
    Pepperstone Forex CFD: Yes

    🀴 Pepperstone is Used By: 89,000
    ⚑ Pepperstone is Regulated by: Financial Conduct Authority (FCA), Australian Securities and Investments Commission (ASIC), Cyprus Securities and Exchange Commission (CySEC), Federal Financial Supervisory Authority (BaFin), Dubai Financial Services Authority (DFSA), Capital Markets Authority of Kenya (CMA), Pepperstone Markets Limited is incorporated in The Bahamas (number 177174 B), Licensed by the Securities Commission of the Bahamas (SCB) number SIA-F217

    πŸ’΅ What You Can Trade with Pepperstone: Forex, Minors, Cryptocurrencies, Majors, Exotics, Indices, Energies, Metals,
    πŸ’΅ Instruments Available with Pepperstone: 100

    πŸ“ˆ Pepperstone Inactivity Fees: Yes
    πŸ’° Pepperstone Withdrawal Fees: No
    πŸ’° Pepperstone Payment Methods: Credit cards, VISA, MasterCard, Debit cards, Bank Transfer, Electronic wallets (eWallets), PayPal, Neteller, BPAY, POLi, UnionPay, FasaPay, QIWI, Payoneer,
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    Pepperstone Risk warning : CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. Between 74-89 % of retail investor accounts lose money when trading CFDs. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money

  • XM Broker CFD Margin

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    XM CFD stocks: 1,240
    XM US CFD stocks: Yes
    XM UK CFD stocks: Yes
    XM CFD Indices: 28
    XM Commodity CFD: 15
    XM ETF CFD: 250
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    🀴 XM is Used By: 10,000,000
    ⚑ XM is Regulated by: Financial Services Commission (FSC), Cyprus Securities and Exchange Commission (CySEC), Australian Securities and Investments Commission (ASIC)

    πŸ’΅ What You Can Trade with XM: Forex, Stock CFDs, Commodity CFDs, Minors, Majors, Exotics, Equity Indices CFD, Energies CFD, Precious Metals
    πŸ’΅ Instruments Available with XM: 1000

    πŸ“ˆ XM Inactivity Fees: Yes
    πŸ’° XM Withdrawal Fees: No
    πŸ’° XM Payment Methods: Credit cards, Debit cards, Bank Transfer, Electronic wallets (eWallets), Moneta, ABAQOOS, PRZELEWY24, Neteller, PerfectMoney, WebMoney, UnionPay, FasaPay, CashU, Payza, QIWI, SOFORT, Giropay, Payoneer, Skrill,
    πŸ’° XM Account Base Currencies:

    XM Risk warning : CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 77.74% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

  • eToro Broker CFD Margin

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    eToro US CFD stocks: Yes
    eToro UK CFD stocks: Yes
    eToro CFD Indices: 30
    eToro Commodity CFD: 31
    eToro ETF CFD: 65
    eToro Forex CFD: Yes

    🀴 eToro is Used By: 20,000,000
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    πŸ’΅ What You Can Trade with eToro: Forex, Minors, Cryptocurrencies, Majors, Exotics, Indices, UK Stocks, US Stocks, Energies, Metals, Agriculturals, ETFs,
    πŸ’΅ Instruments Available with eToro: 2000

    πŸ“ˆ eToro Inactivity Fees: Yes
    πŸ’° eToro Withdrawal Fees: Yes
    πŸ’° eToro Payment Methods: Credit cards, VISA, MasterCard, Maestro, Debit Cards, Bank Transfer, PayPal, Neteller, Skrill, WebMoney, Giropay, eWallets,
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    eToro Risk warning : 51% of retail investor accounts lose money when trading CFDs with this provider.

  • FXPrimus Broker CFD Margin

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    FXPrimus CFD stocks: 50
    FXPrimus US CFD stocks: Yes
    FXPrimus UK CFD stocks: Yes
    FXPrimus CFD Indices:
    FXPrimus Commodity CFD: 20
    FXPrimus ETF CFD: 50
    FXPrimus Forex CFD: Yes

    🀴 FXPrimus is Used By: 10,000
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    πŸ’° FXPrimus Withdrawal Fees: Varies
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    πŸ’° FXPrimus Account Base Currencies: USD, GBP, EUR, SGD, PLN

    FXPrimus Risk warning : Losses can exceed deposits

  • easyMarkets Broker CFD Margin

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    easyMarkets CFD stocks: 50
    easyMarkets US CFD stocks: Yes
    easyMarkets UK CFD stocks: Yes
    easyMarkets CFD Indices:
    easyMarkets Commodity CFD: 20
    easyMarkets ETF CFD: 50
    easyMarkets Forex CFD: Yes

    🀴 easyMarkets is Used By: 142,500
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    πŸ’΅ Instruments Available with easyMarkets: 200

    πŸ“ˆ easyMarkets Inactivity Fees: No
    πŸ’° easyMarkets Withdrawal Fees: No
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    πŸ’° easyMarkets Account Base Currencies: USD, GBP, EUR, CHF, JPY, SGD, AUD, CAD, CNY, CZK, HKD, ILS, MXN, NOK, NZD, PLN, SEK, TRY, ZAR

    easyMarkets Risk warning : Your capital is at risk


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