Interactive Brokers Increases Margin For Stocks and Forex (UPDATED)

Interactive Brokers has announced that they will be increasing their margin requirements for stock markets and currency markets (forex) as follows:

Stock Markets

The margin requirement for stock markets will increase from 25% to 30% (a 5% increase). This increase will affect all stock markets including US, European, and Asian stock markets. The new margin requirements will apply to US stock markets from October 8th (Wednesday). The new margin requirements will apply to European and Asian stock markets from October 9th (Thursday). Any stock markets or stock trades whose margin requirements already exceed 30% will not be affected by the margin increases.

Currency Markets (Forex)

The margin requirement for currency markets (forex) will increase from 2.0% to 2.5% (a 0.5% increase). This increase will affect all cash based currency markets and all trades that involve the cash based currency markets. For example, if a trading account without any EUR currency is holding a long trade in a European stock (i.e. a stock valued in EUR), the margin requirement for the trade will be affected by the new currency market margin requirements, in addition to the new stock market margin requirements. The new currency market margin requirements will apply from October 8th (Wednesday).

How Does This Affect Your Trading?

Any new trades that you make will need to be covered by enough margin to meet the new requirements. This includes any new stock trades, any new currency trades, and any new trades on any markets that involve a currency that you do not have enough of (e.g. trading a futures market that is valued in a currency that you are not holding in your trading account).

Any existing trades that you are holding will also need to meet the new margin requirements. Again, this includes any existing stock trades, any existing currency trades, and any existing trades on any markets that involve a currency that you do not have enough of. If you are currently holding any trades that might be affected by the new margin requirements, make sure that your trading account is compatible with the new margin levels by the time that they take effect. Any trading accounts that are not compatible with the new margin levels will be adjusted automatically by Interactive Brokers, which could result in trades being exited at prices which you do not want.