Fed's 4% Rate Ceiling Pushes Brokers to Recut Leverage Caps
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The Federal Reserve's quarter-point hike to a 3.75%-4.0% range is rippling through broker risk desks. Higher funding costs mean rollover and swap charges on MT4 and MT5 accounts are being repriced across major FX and CFD brokers.
FCA- and CySEC-regulated firms are understood to be reviewing leverage tiers for retail clients, particularly on interest-rate-sensitive pairs, as volatility around policy meetings increases margin call frequency.
Liquidity providers are also widening spreads during rate announcements, prompting brokers to update execution disclosures so traders understand slippage risk in a higher-rate environment.