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-   -   ASIC deals massive blow to Australian CFD industry (https://www.forexfactory.com/showthread.php?t=945909)

Mr4x86 Jan 24, 2020 8:48am | Post# 81

Pokies in WA are allowed in the Casino in Perth, and that's it. They do not exist anywhere else in the state. The closest thing to gambling outside Crown Casino Perth is your local TAB with sports betting, but there are zero pokies.

How much per trade? Well its a hedge so 2 pairs. $1700 / 2 = roughly $850 per trade no?

I'll share one of my ideas I'm working on since they're indices that brokers will most likely never scrap - US30 / US500. They pretty much move in perfect tandem but 9 times out of 10 US500 moves up just a little bit more than US30 (read historical charts for both these symbols).
Lot sizing is thus: Sell 1 index US30 Buy 10 indices US500 (thats what is needed to keep pip sizes equal and the hedge to work properly).
Try it on a demo account with 10k - Do the trade once per night at the beginning of the US market open (which is 10:30PM WA time). I have a script that automatically closes out both trades when the average gain across both pairs is 20 pips ie: when the correlation briefly changes as the US500 overtakes US30, or if the US30 falls faster than the US500. Obviously since the market is open during the hours that I am asleep I need a script to catch the moment it happens, but often its fine to just close it out the next day. With Apple now topping both of these indices, the correlation should stay very tight for some time, making potential draw down minimal.
Rinse and repeat the following trading night. Works better / faster when market is going up and on swap-free accounts that give you a few days grace period on admin charges in case it takes a couple of days for the stars to align in your favour...

Anyway I have a few others similar to this that I probably shouldn't share involving instruments available only with my broker so far because I don't want them to turn around and widen the spread / stop offering that product / find some other way to stop me being profitable with this system...

RCtrader Jan 25, 2020 4:12pm | Post# 82

ASIC deals massive blow to Australian CFD industry, but is it really that bad? https://financefeeds.com/asic-deals-...ry-really-bad/ If you can please share your views, it would be greatly appreciated.
All these regulators simply copy-paste one another. They invent problems and cures for them. If they downsize leverage then I hope they go for 1:100.

LloydOz Jan 26, 2020 1:49am | Post# 83

{quote} All these regulators simply copy-paste one another. They invent problems and cures for them. If they downsize leverage then I hope they go for 1:100.
And maybe the complaints they receive all look pretty much the same, too.

"Me broker, them they ripped me off and now I is broke an' with the ecomony an' climate changin, and me credit card outfit, well, them they keep hassling me missus. Marky, Ricky, Danny, Terry, Mickey, Davey, Timmy, Tommy, Joey, Robby, Johnny, Brian an Willy thems all screaming in the sandpit for some left overs.

Youse blokes need to stop them criminals".

RCtrader Jan 26, 2020 3:04am | Post# 84

{quote} And maybe the complaints they receive all look pretty much the same, too. "Me broker, them they ripped me off and now I is broke an' with the ecomony an' climate changin, and me credit card outfit, well, them they keep hassling me missus. Marky, Ricky, Danny, Terry, Mickey, Davey, Timmy, Tommy, Joey, Robby, Johnny, Brian an Willy thems all screaming in the sandpit for some left overs. Youse blokes need to stop them criminals".
It's sad. The moment I see them making so many mistakes in one single sentence, I cannot stop wondering what makes them think they are going to be successful in the world of finance?

matthew89 Jan 26, 2020 8:06pm | Post# 85

{quote} All these regulators simply copy-paste one another. They invent problems and cures for them. If they downsize leverage then I hope they go for 1:100.
I hope they go for 1:100, but it looks like they are going for 1:20 on all major and minor pairs.

Merka Jan 27, 2020 5:53pm | Post# 86

{quote} I hope they go for 1:100, but it looks like they are going for 1:20 on all major and minor pairs.
If they are going for so low leverage than there is no point to stay with Australian brokers.
I was having an account with XM Australia at 500:1 leverage but they closed it on December.
I still have an account with ICMarkets Australia at 500:1 but I think I will close it as soon as the new regulation kick in and move back to Europe at 30:1.

For anyone interested there is Dukascopy Switzerland (NOT Dukascopy Europe) that offers 100:1 as standard leverage for forex but it can be increased up to 200:1 based on request acceptance.

LloydOz Jan 28, 2020 1:31am | Post# 87

Should you wish to bump up the leverage there is an easy and legitimate method for doing so. For every $100 of your own money, borrow $10,000 from someone else and deposit that into your account. That would make the leverage on your own money ear bleedingly high, even at 1:20.

This someone else may be your other half, or your elderly retired parents. They would be pleased to mortgage the family home to help you out. You would offer to pay any fees associated with this, because it will be of no significance in the scheme of things.

LloydOz Jan 28, 2020 1:43am | Post# 88

{quote} For anyone interested there is Dukascopy Switzerland (NOT Dukascopy Europe) that offers 100:1 as standard leverage for forex but it can be increased up to 200:1 based on request acceptance.
Passing on the leverage aspect of Dukascopy Swiss for a moment, what many may find to be exceptionally virtuous is that they offer a Miss Dukascopy competition. Complete with pictures for those who are of a visual disposition.

https://www.dukascopy.com/fxcomm/mis...y/?language=en

finessence Jan 28, 2020 2:33pm | Post# 89

Some (if not all) Australian brokers have subsidiaries registered in offshore jurisdictions, e.g:
XM in Belize;
IC Markets in the Seychelles;
FP Markets in St. Vincent and the Grenadines etc.

If ASIC goes ahead with the leverage cap, these brokers will most probably still offer 1:500 through their offshore entities. If so, there will be this curious combination of vaguely regulated offshore subsidiaries of otherwise solid brokers. The obvious question is, are they going to keep up the standards there?

matthew89 Jan 28, 2020 7:14pm | Post# 90

{quote} If they are going for so low leverage than there is no point to stay with Australian brokers. I was having an account with XM Australia at 500:1 leverage but they closed it on December. I still have an account with ICMarkets Australia at 500:1 but I think I will close it as soon as the new regulation kick in and move back to Europe at 30:1. For anyone interested there is Dukascopy Switzerland (NOT Dukascopy Europe) that offers 100:1 as standard leverage for forex but it can be increased up to 200:1 based on request acceptance.
OK interesting, definitely going to look into moving to a swiss broker after the ASIC goes ahead with the new regulations. I'm a sensible retail trader, and just want to continue trading with 1:100 leverage. Can anyone recommend any other reputable international brokers that offer at least 1:100 leverage?

turnip15 Jan 30, 2020 2:23pm | Post# 91

IG Bank in Switzerland may be worth looking at.

https://www.ig.com/en-ch/help-and-su...roduct-details

matthew89 Jan 30, 2020 4:13pm | Post# 92

IG Bank in Switzerland may be worth looking at. https://www.ig.com/en-ch/help-and-su...roduct-details
IG Bank only offers UK clients 1:30 leverage, can anyone recommend any other reputable international brokers that offer at least 1:100 leverage for foreign clients?

Merka Jan 30, 2020 5:21pm | Post# 93

{quote} IG Bank only offers UK clients 1:30 leverage, can anyone recommend any other reputable international brokers that offer at least 1:100 leverage for foreign clients?
Unfortunately there are not many options available.
Mainly you need to escape from European,Canadian, American jurisdictions.
What's left in Switzerland (you already know that), Republic of San Marino, Principality of Monaco, Andorra, Jersey, Principality of Liechtenstein etc...
In other words, small independent countries in Europe but not part of European union where the economy in based on banking and financials deregulation.
These countries may have also brokers that can offer different standards.
I have hope also on UK after Brexit, from 2021, because it will be out from European union.

skyhigho Jan 31, 2020 12:42am | Post# 94

any updates for asic new rules?

matthew89 Jan 31, 2020 1:00pm | Post# 95

any updates for asic new rules?
Read this report:

https://download.asic.gov.au/media/5...ugust-2019.pdf

Its what the ASIC are proposing, go to page 46 for the new restrictions on leverage. Its most likely going to be 1:20 for all major and minor currency pairs. Not good news...

finessence Jan 31, 2020 1:28pm | Post# 96

any updates for asic new rules?
Be the first to know

https://asic.gov.au/about-asic/news-...r-news-alerts/

mankindeg Feb 5, 2020 8:05am | Post# 97

{quote} Indeed a valuable lesson.... members can see the nervous brake down of a snake oiler that sees how spreading of facts hit his business model based on spreading lies. The way you act tells me you are somehow linked to the forex industry. Whether to a broker, a signal seller, educator, whatever.... you profit from spreading the lie. To sell the message of beeing profitable is more important to you than actually being profitable.
As a neutral observer: Nope.
He completely destroyed you in the debate and you screamed and cried, because you ran out of arguments.

Constantino Mar 21, 2020 1:03pm | Post# 98

{quote} I have to chime in, but I found this FXbook and...actually many more. I'm still fairly new to this game...but this has given me hope. You seemed a little harsh to the gentleman who posted his FXbook...mind you I didn't read all of this forum... I've reached out to this guy, found him via linkedIn... chatted a bit. Nice dude...he manages $3 million where I think 10% is his own money...and he takes a 15% cut of profits. 5 years running on one account of around 200K, only two months of DD...one was -24% but he quickly recovered. Currently he's...
what;s his myfxbook link bro?

finessence Mar 30, 2020 10:24am | Post# 99

In case you missed it:
https://www.financemagnates.com/fore...amid-covid-19/

...a bit of a silver lining then, in all this corona mess... stay safe


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