{"id":96465,"date":"2023-10-28T02:09:23","date_gmt":"2023-10-28T02:09:23","guid":{"rendered":"https:\/\/arielle.com.au\/?p=96465"},"modified":"2026-01-22T04:45:56","modified_gmt":"2026-01-22T04:45:56","slug":"asic-cfd-leverage-restrictions","status":"publish","type":"post","link":"https:\/\/arielle.com.au\/asic-cfd-leverage-restrictions\/","title":{"rendered":"Australian CFD Traders Must Know About These ASIC Restrictions"},"content":{"rendered":"Reading Time: <\/span> 6<\/span> minutes<\/span><\/span>\n

Australian investors need to know about leverage ratio limits when trading Contracts For Difference (CFDs), as well as the implications of not abiding by ASIC restrictions.<\/p>\n\n\n\n

New changes came into effect to protect traders on 29 March 2021, but what exactly do the ASIC leverage restrictions mean for the average retail investor?<\/p>\n\n\n\n

Most non-professional investors are haemorrhaging their hard-earned money when leveraging CFDs. <\/p>\n\n\n\n

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Important!<\/h3><\/div>

During one volatile period, ASIC reported<\/a> that “CFD issuers lost more than $774 million in one five-week period – and more than 15,000 retail client accounts fell into negative balance owing a total of $10.9 million.”<\/p><\/div><\/div><\/div><\/div><\/div>\n\n\n\n

Over 81% of retail investors lose money trading CFDs. That’s a stat that almost every leading CFD broker<\/a> is obliged to display on their online platform \u2013 to protect you.<\/p>\n\n\n\n

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Don’t make any rash moves until you’ve read through this guide.<\/p>\n\n\n\n

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What Leverage Restrictions Did ASIC Implement?<\/strong><\/h2>\n\n\n\n

You’ve probably heard of the Australian Securities and Investments Commission (ASIC) restrictions, and while some feel they inhibit investors’ ability to maximise gains, the reality in most cases is that there’s been a substantial reduction in losses since their introduction.<\/p>\n\n\n\n

(Related: eToro vs Interactive Brokers: Which Is Best For Aussies?<\/a>)<\/strong><\/p>\n\n\n\n

Upon introduction, there have been:<\/p>\n\n\n\n