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Author Topic: ESMA Faces FCA Resistance to 1:30 Leverage Cap  (Read 1195 times)

Offline vontogr

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ESMA Faces FCA Resistance to 1:30 Leverage Cap
« on: April 05, 2018, 01:41:06 PM »
As far as I understand it all brokers regulated in EU will be forced to apply maximum leverage of 1:30.
What does it mean for you?
https://www.financemagnates.com/forex/regulation/exclusive-esma-faces-fca-resistance-130-leverage-cap/

Online reinerh

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Re: ESMA Faces FCA Resistance to 1:30 Leverage Cap
« Reply #1 on: April 10, 2018, 04:07:13 PM »

that be the end of fx trading with europe brokers for sure.........................................

they killed the entire fx industry in usa as well.

Offline vontogr

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Re: ESMA Faces FCA Resistance to 1:30 Leverage Cap
« Reply #2 on: April 16, 2018, 10:08:55 AM »
Well European Union likes to regulate everything.
It is a way to hell though as at the end there will remain nothing to regulate.

Online Eliza Abrams

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Re: ESMA Faces FCA Resistance to 1:30 Leverage Cap
« Reply #3 on: April 18, 2018, 02:37:13 PM »
That isn't always a bad thing, in my opinion.
ESMA banned binary options throughout the EU with the same mandate, and I think most traders with at least a little bit of experience would agree that binary options and their brokers are hardly a good thing.

That said, a 1:30 leverage cap is ridiculous, in my opinion.

Offline Paul.Trafford

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Re: ESMA Faces FCA Resistance to 1:30 Leverage Cap
« Reply #4 on: May 31, 2018, 01:50:45 PM »
That would be a drastic change of the trading conditions. As far as I understood it is not accepted yet. Once everything is finalized all brokers will have 2 months to implement the changes. However the support team of the broker I currently use advised that they are working on solution (quite interested what that could be :D) but no details till is completely set so will wait

Online Eliza Abrams

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Re: ESMA Faces FCA Resistance to 1:30 Leverage Cap
« Reply #5 on: May 31, 2018, 02:09:46 PM »
I thought they'd be implementing the changes around June-July this year?

Offline primi

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Re: ESMA Faces FCA Resistance to 1:30 Leverage Cap
« Reply #6 on: June 01, 2018, 07:33:51 AM »
You can declare yourself a professional investor but I haven't looked into it yet. Then these changes don't apply. From memory there are some income requirements and they are too high for most retail traders.

Online HFT Group

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Re: ESMA Faces FCA Resistance to 1:30 Leverage Cap
« Reply #7 on: June 01, 2018, 07:50:41 AM »
Aussie brokers without UK offshoots are going to see an influx until tighter regs are implemented there also.

Online reinerh

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Re: ESMA Faces FCA Resistance to 1:30 Leverage Cap
« Reply #8 on: June 01, 2018, 06:14:45 PM »
That isn't always a bad thing, in my opinion.
ESMA banned binary options throughout the EU with the same mandate, and I think most traders with at least a little bit of experience would agree that binary options and their brokers are hardly a good thing.

That said, a 1:30 leverage cap is ridiculous, in my opinion.

its like 1:3 for most pairs.

only the few majors are 1:30 the way i understand it.


Offline primi

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Re: ESMA Faces FCA Resistance to 1:30 Leverage Cap
« Reply #9 on: June 01, 2018, 07:01:55 PM »
1:30 for major currency pairs and 1:20 for all other pairs as far as FX is concerned.

Online reinerh

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Re: ESMA Faces FCA Resistance to 1:30 Leverage Cap
« Reply #10 on: June 02, 2018, 12:33:00 AM »
1:30 for major currency pairs and 1:20 for all other pairs as far as FX is concerned.

this is from pepperstone, so as low as 2:1

but maybe the rules are like chewing gum so far = nobody really knows kinda..............

 Forex instruments ranging from 2:1 with a maximum of 30:1 for major currency pairs

Offline Tradenow

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Re: ESMA Faces FCA Resistance to 1:30 Leverage Cap
« Reply #11 on: June 02, 2018, 01:49:15 PM »
ESMA is the end of retail forex in the EU and that's wanted.

Quote
The European Union is Hit

The choice is to stay, go or close.  If it can happen in the United States, it can happen in the European Union.

The most badly hit places by these restrictions are the United Kingdom (in the process of exiting the European Union) and Cyprus (had a Financial Crisis in 2012-13 that resulted in bail-ins by banks).

Money flows out of European Union and into different jurisdictions to enrich communities who will treat these escapees best.  Its an opportunity for new regulators to come about and create an environment that is not draconian, but still fosters Forex firms looking to do best by their clientele.  That happy medium can be created elsewhere and it just may end up happening.

The European Union could soon lose brokerages based in its territory for fairer shores because it starts with a ripple and then it becomes a wave.

ESMA may have started that process.

Source: https://freevestor.com/esma-leverage-retail-forex/

Its time to move on...
« Last Edit: June 02, 2018, 01:56:28 PM by Tradenow »

Online Eliza Abrams

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Re: ESMA Faces FCA Resistance to 1:30 Leverage Cap
« Reply #12 on: June 05, 2018, 02:21:19 PM »

Guys, keep in mind that the new restriction will officially come into take effect from 1st August 2018, aka in two months.
The measures include a leverage cap of 1:30, as well as provision of negative balance protection on a per account basis, among others.

Additionally, ESMA also introduces a ban on binary options trading as of July 2, 2018. The new regulations have already been published in the Official Journal of the European Union (OJ) and will remain in force for three months from the date of application.

Online Eliza Abrams

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Re: ESMA Faces FCA Resistance to 1:30 Leverage Cap
« Reply #13 on: August 01, 2018, 03:01:47 PM »
  UKs financial watchdog has come up with a statement following the entry into force of ESMAs restrictions on CFD trading, which include a leverage cap of 1:30, among others. The FCA expressed concerns that firms may try to get around ESMAs measures by selling other similarly complex products to retail clients.

If we have evidence that these products are causing similar harms, we will work with ESMA and will, if necessary, support further action to extend the scope of its intervention, the FCA stated in its official notice.

Offline Paul.Trafford

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Re: ESMA Faces FCA Resistance to 1:30 Leverage Cap
« Reply #14 on: August 07, 2018, 02:20:34 PM »
I found normal Brokers to search and offer alternatives for the traders. With that low leverage they probably lost significant level of clients.
Anyway, hopefully in 3 months they will decide to remove restrictions and get the things back to normal 😊

 

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