Fusion Markets

3 – If I have migrated already to the VFSC, Can I switch back and use this?  
A – Yes you are welcome to do so, however, ASIC may make further changes to the restrictions or these criteria in the future and migrating to the VFSC is better long-term way to avoid any changes to your trading conditions. 

The only countries where migration is an option within the hub are countries are the following (The only non-AU countries that we should approve accounts for on FM-AU):  

1) Singapore  

2) Malaysia  

3) UK  

4) Italy  

5) Germany  

6) South Africa   

7) Kenya  

8) Nigeria 
  
4 – Is this the same as being a Wholesale investor under ASIC? 
 A – While the sophisticated investor qualification allows you to retain the same trading benefits as a Wholesale investor in terms of conditions and costs, you may find that if ASIC was to make any further restrictions or changes to these criteria in the future, the sophisticated investor tier could be made redundant or have its entry level qualifications increased at short notice.  
 
5 – Does this cost anything or give me any other special benefits? 
 A – Registering as a sophisticated investor is simply a way of not qualifying for the upcoming ASIC leverage changes that are meant for “Retail” traders by acknowledging that you have prior experience and understanding of the risks of trading as a sophisticated investor. While you will lose some protections that a retail trader may enjoy, this allows you to retain your prior trading conditions such as the right to use a higher leverage. 
  
6 – What is the negative balance protection? Can I get access to this as a wholesale client or as a client of the VFSC license? 
 A – While all clients of Fusion Markets under ASIC and VFSC have negative balance protection in their accounts in the form of the margin stop-out system, they can still incur and be liable for negative balances if market conditions go against them and the system cannot exit their trades at the expected price. Under the new retail trading conditions that ASIC is imposing (1:30 leverage, negative balance protection etc.), clients will still have the same system running on their accounts, however they will not be liable for negative balances incurred.  

 
7 – What does it mean when you say $1000,000 notional value? 
 A – A standard lot of FX refers to $100,000 notional value in the FX markets, so to qualify a client must trade the equivalent of 20 x $10,000 NV (or 10 standard lots) per quarter for at least 4 quarters.  
 
8 – What happens if I don’t want to apply for this? 
 You can continue to trade with the full retail client protection. You will still benefit from our tight spreads, fast execution and industry leading support, but with a higher margin requirements on all your positions.  
 
9 – Does this affect my Taxes? 
 A - The wholesale investor definition is a Corporations Act definition. It does not change your tax status. 
  
10 – How will I know my account has been set to Pro status? 
 A – Once you sign the agreement, unless you are notified otherwise, you will be considered as a Fusion Markets “Pro” account.  
 
11 – If I upgrade to Pro client status, will I get better spreads and commissions 
 A – Fusion Markets was founded with the aim of being the world's lowest cost broker and we are happy to offer our best pricing to all clients who trade with us, no matter if they are retail or wholesale. So you will be able to continue trading with the best trading conditions in the industry no matter what criteria you fall under.