This article will explain easyMarkets’ FX zero cut, loss cut adoption method, and leverage for your reference. When trading, you should be careful about loss cuts. Traders cannot always decide the timing of loss cuts as they like. Be careful, as loss cuts will be automatically performed if a certain threshold is exceeded.
easyMarkets Company Information
Here’s a summary of easyMarkets’ company information:
🌍 Basic Overview
easyMarkets is an international online FX/CFD broker (financial instruments trading company) based in Cyprus. As an international FX broker, it offers contracts for difference (CFDs) on foreign exchange, stock indices, commodities, cryptocurrencies, and stocks. Founded in 2001, it has over 20 years of operating experience.
Established: 2001 (originally named Easy Forex)
Headquarters: Limassol, Cyprus
Industry: Online brokerage/financial services (FX/CFD trading services)
Management: Private
CEO: Koula Lamprou (as of 2025)
Group parent company: Blue Capital Markets Ltd (holding company)
📊 Regulations and Licensing
easyMarkets is licensed by financial authorities in multiple countries and regions and operates internationally. Please note that we are not registered as a financial instruments business operator in Japan (we are an overseas broker).
Key Registrations and Regulations:
🇨🇾 CySEC (Cyprus Securities and Exchange Commission) License
🇦🇺 ASIC (Australian Securities and Investments Commission) License
🇸🇨 FSA (Seychelles Financial Services Authority) License
🇻🇬 FSC (British Virgin Islands Financial Services Commission) License
🇿🇦 FSCA (Financial Sector Conduct Authority of South Africa) License
(*Regional restrictions apply)
💼 Trading Services/Features
easyMarkets’ Key Services and Features:
🔹 FX (Foreign Exchange) Trading (Many Currency Pairs)
🔹 CFDs (Stock Indices, Commodities, Stocks, Cryptocurrencies, etc.)
🔹 Trading Platform
・ Proprietary Web/Mobile App
・ MetaTrader 4 (MT4)
・ MetaTrader 5 (MT5)
・ TradingView Integration
🔹 Unique Features
・dealCancellation (trade cancellation feature)
Freeze Rate (rate pause feature)
Zero Cut (no margin calls), etc.
🔹 Fixed spreads (some products)
🔹 Japanese website support available (but not exclusively for Japan)
📍 History and Brand
Founded in 2001 as Easy Forex, the name was later changed to easyMarkets.
With over 20 years of operating history, the company operates in over 160 countries worldwide.
2020: Signed a sponsorship agreement with Spanish soccer club Real Madrid CF (an iconic partnership)
easyMarkets Loss Cuts
We will explain the loss cut (forced liquidation) rules at easyMarkets, including some unique aspects of this brokerage.
1️⃣ What is a Loss Cut?
A loss cut is a mechanism that automatically closes positions to prevent further losses when an account’s equity (funds) falls below a certain level.
At easyMarkets, a loss cut is triggered when the margin maintenance ratio (Margin Level) falls below a certain level.
2️⃣ easyMarkets Loss Cut Rules
Loss cut trigger level: When the account’s margin maintenance ratio falls below 30%
→ This is a more common setting than the 50% or 20% set by many other brokers.
Trigger Condition: Account Balance to Margin Ratio (Margin Maintenance Ratio)
Margin Maintenance Ratio = (Equity ÷ Required Margin) × 100%
If this ratio falls below 30%, your position will be automatically closed.
Applies to: All CFD and FX positions
Zero-Cut Support:
easyMarkets uses a zero-cut system, meaning no additional margin calls will be required even if your account balance goes negative.
In other words, easyMarkets is responsible for the negative balance.
For individual investors, the maximum loss is limited to the deposit amount.
3️⃣ Characteristics of Loss Cuts
Fixed Level Safety Design
Since it is low at 30%, some positions may remain unaffected.
Use in conjunction with Zero-Cut
Reduces the risk of your account going negative even in the event of sudden currency fluctuations.
Impact on Trading Strategy
High leverage reduces the margin required for a loss cut.
There is also the risk of unexpected losses during sudden market fluctuations.
easyMarkets’ Stop-Out Levels by Account Type
We’ve compiled easyMarkets’ stop-out levels (= stop-out levels) by account type to the extent possible. 👆
📌 Common Standards (Many Account Types)
Margin Call (Maintenance Margin Ratio): 70%
→ If your margin ratio falls below 70%, your broker will issue a “margin call” warning.
Loss-Out (Stop-Out/Maintenance Margin Ratio): 30%
→ For many account types, positions will be automatically liquidated if your margin ratio falls below 30%.
👇 This level is consistent across all major account types on EasyMarkets.
📊 Summary of Stop-Out Levels by Account Type
| 口座タイプ | ロスカット水準（証拠金維持率） | マージンコール水準 |
|---|---|---|
| スタンダード口座（Standard） | 約 30% | 約 70% |
| プレミアム口座（Premium） | 約 30% | 約 70% |
| VIP口座 | 約 30% | 約 70% |
| MT5 / ダイナミック口座 等 | 明示なし／推定 同様の水準 | 明示なし／推定 同様 |
Note: Some sources state the stop-out level as 50%, but this may be outdated or based on different conditions. The official and commonly used notation is approximately 30%.
🧠 Supplement: How to Read Stop-Out Levels
Margin Maintenance Ratio (Margin Level)
Equity ÷ Required Margin × 100 = Margin Maintenance Ratio
If this value falls below the stop-out level, the position will automatically close.
Common Rule Trends
At EasyMarkets, the same percentage rule is often used regardless of account type, with 30% being considered the standard.
Exceptions and Mixed Information
While account specification comparison sites sometimes list 50%, official information and reviews from multiple sites generally indicate a 30% standard.
Strategies for Avoiding Loss Cuts
The easyMarkets loss cut avoidance strategy, regardless of account type or leverage, is primarily centered on maintaining a safe margin maintenance ratio. In overseas FX, loss cuts are triggered at a margin level below 30%, so risk management is extremely important. Here are some specific methods.
1️⃣ Deposit Sufficient Margin
Loss cuts are triggered when the margin maintenance ratio (Margin Level) falls below 30%.
Especially when trading with high leverage, leaving some surplus funds in your account can help avoid loss cuts during market fluctuations.
Example Strategy: Maintain a margin maintenance ratio of 100%-200% or higher.
Example: Margin Maintenance Ratio = Equity ÷ Required Margin × 100
2️⃣ Set a Low Leverage
While high leverage can increase profits, it also directly leads to loss cuts.
Recommendation: Reduce leverage as much as possible.
Example: Keep it to around 1:30-1:100 (maximum 1:400-1:500 is possible with overseas FX, but this is risky).
3️⃣ Diversify your positions.
If you are heavily weighted toward a single currency pair or CFD, sudden fluctuations can lead to immediate stop losses.
Strategy Example: Spread Margin Risk Across Multiple Stocks
4️⃣ Setting Stop-Losses and Stop-Losses
easyMarkets also offers deal cancellation and freeze rate features, but the basic strategy is to place stop-loss orders.
By determining your “tolerable loss” price in advance, you can prevent your margin maintenance rate from dropping and directly avoid stop-losses.
5️⃣ Regularly Check Your Account
Forex and CFDs fluctuate 24 hours a day.
Especially during sudden market fluctuations, your margin maintenance rate may drop momentarily. Therefore, regularly check your account status and make additional deposits or position adjustments.
6️⃣ Utilize Unique Features of Overseas FX
deal cancellation: Allows you to cancel losses within a certain time after a trade.
Freeze Rate: Pauses trading at your desired price to prevent losses from expanding.
Strategically combining these strategies can reduce the risk of stop-losses.
The Difference Between Stop Loss and Zero Cut on easyMarkets
Loss cut and zero cut on easyMarkets may seem similar, but they have distinctly different mechanisms and purposes. To avoid confusion, let’s clarify.
1️⃣ Stop Loss (Forced Liquidation)
Definition
A mechanism that automatically liquidates positions to prevent further losses when the margin maintenance ratio (Margin Level) falls below a certain level (30%).
Key Points
Trigger Condition: Margin Maintenance Rate < 30%
Applicable to: All FX and CFD positions
Objective: Prevent losses before your account balance goes negative
Result: Open positions are automatically closed, and any remaining account balance remains.
Example
Account Balance: ¥100,000
Position Loss: ¥80,000
Positions are automatically closed when the margin maintenance rate falls below 30%.
Balance: ¥20,000 (¥80,000 loss)
2️⃣ Negative Balance Protection (Zero Cut)
Definition
This mechanism resets your account balance to ¥0 without requiring you to deposit additional funds, even if your trading losses increase and your account balance falls below ¥0 (negative).
Key Points
Activation Condition: When market fluctuations are sudden and the balance becomes negative even after a stop loss.
Purpose: Prevents customers from incurring additional debt.
Result: Account balance is reset to ¥0, no additional deposit required.
Example
Even after a stop loss, the market suddenly changes and the account balance becomes -¥20,000.
Zero Cut Activated → Balance is ¥0, and the investor does not incur a ¥20,000 debt.
3️⃣ Summary of the Differences
| 項目 | ロスカット | ゼロカット |
|---|---|---|
| 発動条件 | 証拠金維持率が30%未満 | 口座残高がマイナスになった時 |
| 目的 | 損失拡大の防止 | 投資家の追加負債防止 |
| 結果 | ポジション強制決済 | 残高0円にリセット、追加入金不要 |
| タイミング | 証拠金維持率低下時 | ロスカット後でも急変動で残高がマイナスになった時 |
💡 Note: Overseas FX (including easyMarkets) ensures safety through a two-tiered approach: limiting losses with stop loss and preventing potential debt with zero cut.
Frequently Asked Questions
We have compiled a list of frequently asked questions (FAQs) from users about easyMarkets, including points specific to overseas FX trading.
1️⃣ Account & Deposit Information
Q1: What do I need to open an account?
Identification (passport or driver’s license)
Address verification (utility bill, etc.)
Email address and phone number
Q2: What is the minimum deposit amount?
Standard account: Starting at approximately $100
Premium/VIP account: Starting at several thousand dollars (depending on account type)
Q3: Are Japanese yen accounts available?
Accounts for Japanese residents allow the option of Japanese yen. Deposits and trades can also be made in USD or EUR.
2️⃣ Trading & Platform Information
Q4: What trading platform do you offer?
Proprietary web/mobile app
MetaTrader 4 (MT4)
MetaTrader 5 (MT5)
TradingView integration available
Q5: Are spreads fixed or variable?
Some currency pairs and CFDs have fixed spreads.
May fluctuate depending on market conditions.
Q6: What is the maximum leverage available?
Maximum 1:400 (depending on account type and country of residence)
High leverage can bring greater profits, but also increased risk of stop-losses.
3️⃣ Stop-loss and Zero-loss Cutoffs
Q7: What is the stop-loss level?
Triggered when the margin maintenance ratio is below 30% (all account types)
Q8: What is a zero-loss cutoff?
No additional deposit required even if your account balance goes negative.
Your balance will be reset to 0 yen.
Q9: What is the difference between stop-loss and zero-loss cutoff?
Stop-loss: Prevents losses by automatically settling positions.
Zero-loss: No additional deposit required even if your balance goes negative.
4️⃣ Deposits and Withdrawals/Fees
Q10: How do I deposit or withdraw funds?
Credit card/debit card
Bank transfer
E-wallets (Skrill, Neteller, etc.)
Q11: Are there any fees?
Deposits: Many are free.
Withdrawals: Fees may apply depending on bank transfer or card.
5️⃣ Japanese Support/Regulations
Q12: Is Japanese support available?
Website and support are available in Japanese.
However, the broker is not registered with the Financial Services Agency in Japan.
Q13: Is trading safe?
Licensed by multiple institutions, including Cyprus (CySEC), Australia (ASIC), and Seychelles (FSA).
Japanese residents are treated as overseas FX brokers and are not protected under Japanese law.
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