European Brokers are lowering leverage? | Forex Factory

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European Brokers are lowering leverage?

  • #1
  • First Post: Feb 2, 2017 3:08am Feb 2, 2017 3:08am
http://www.leaprate.com/2016/11/cyse...verage-at-50x/

http://www.financemagnates.com/forex...-leverage-cap/

I just saw this news, arghh, does it mean I can't trade with high leverage soon?
There is no Guarantee Winner for the Game
  • #2
  • Feb 2, 2017 4:36am Feb 2, 2017 4:36am
Funny. About time. Reminds me of the situation back in the old days when early men decided to breakaway from their colonial masters. I was wondering when that law will be enforced. Clients think having large leverage is an added advantage.
  • #3
  • Feb 2, 2017 6:55am Feb 2, 2017 6:55am
CySEC regulated brokers have already started complying with the new regulations and are lowering their default leverage to 1:50. Since the regulator also banned bonus programs I am assuming they will remove those as well. I am not sure what the situation is with the FCA-regulated brokers though.
  • #4
  • Feb 2, 2017 8:44am Feb 2, 2017 8:44am
There are worse things - Belgium banned all retail fx and CFDs alltogether. I can live with 50x.
  • #5
  • Feb 6, 2017 5:27am Feb 6, 2017 5:27am
Well, I'm scalper, thus leverage is important for me.. I don't usually hold overnight position.
There is no Guarantee Winner for the Game
  • #6
  • Feb 6, 2017 8:30am Feb 6, 2017 8:30am
Quoting mlawson71
CySEC regulated brokers have already started complying with the new regulations and are lowering their default leverage to 1:50. Since the regulator also banned bonus programs I am assuming they will remove those as well. I am not sure what the situation is with the FCA-regulated brokers though.
According to mass media sources, they will apply the same policy.
  • #7
  • Feb 6, 2017 8:49am Feb 6, 2017 8:49am
Keep calm and ...

The FCA thing is just a proposal (for now). CySec capped the (!!!!!!)DEFAULT(!!!!!!) leverage at 50 - it means when you have opened a new trading account your leverage is set to 50, you can still opt in for higher leverage. It's nothing more than a, um, default desktop background when you've installed windows - you can still set it to those lovely half-naked ladies with that big eyes later.
  • #8
  • Feb 6, 2017 9:23am Feb 6, 2017 9:23am
Quoting JensG
Keep calm and ... The FCA thing is just a proposal (for now). CySec capped the (!!!!!!)DEFAULT(!!!!!!) leverage at 50 - it means when you have opened a new trading account your leverage is set to 50, you can still opt in for higher leverage. It's nothing more than a, um, default desktop background when you've installed windows - you can still set it to those lovely half-naked ladies with that big eyes later.

I prefer to have FCA broker, CySec's broker have too much scary Story...
There is no Guarantee Winner for the Game
  • #9
  • Feb 6, 2017 9:28am Feb 6, 2017 9:28am
Quoting SeanSalsa
{quote} I prefer to have FCA broker, CySec's broker have too much scary Story...
Well, lets put it that way: if all I know about the business is its regulatory body I'd agree with you. FCA did a good job thus far. For a lot of people "regulated by the FCA" is a bit like "made in Germany" on a car or "made in italy" on various food products.
  • #10
  • Feb 6, 2017 10:20am Feb 6, 2017 10:20am
Quoting JensG
{quote} Well, lets put it that way: if all I know about the business is its regulatory body I'd agree with you. FCA did a good job thus far. For a lot of people "regulated by the FCA" is a bit like "made in Germany" on a car or "made in italy" on various food products.

Well, true, the risk of not being Ripped off by FCA broker is lower, but doesn't mean never will be.
Finger Cross!!!
There is no Guarantee Winner for the Game
  • #11
  • Feb 6, 2017 5:00pm Feb 6, 2017 5:00pm
I am trading under EMIR regulation (Hanseatic broker) and they are still offering :200 So, no final deal/decision yet taken.
I think CySEC and European regulators are scaring for now.
But I would be happy to see lower leverage.
  • #12
  • Last Post: Feb 9, 2017 5:39pm Feb 9, 2017 5:39pm
Regarding the FCA proposal:
http://www.leaprate.com/2017/02/fca-...-bonus-issues/
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