Retail brokers hike margins ahead of French election

IG Group, FXCM and Saxo take first steps to reduce risk for clients, while others will take action later this week

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Unprecedented scenario: latest figures show four candidates sitting within the polls’ margin of error – unheard of in French electoral history

Retail foreign exchange brokers are increasing the margin rates required from their clients in the run-up to the second round of the French presidential election on May 7, in an effort to prevent customers from accumulating over-leveraged positions and incurring heavy losses.

Several retail brokers, including IG Group, FXCM and Saxo Bank, have already started tightening the margin rates on numerous currency pairs and European indices, which could be prone to a kneejerk reaction when the ballots