Ireland looking to ban leveraged Forex and CFD trading

Ireland looking to ban leveraged Forex and CFD trading for retail clients

Breaking Forex News... The Central Bank of Ireland, which also acts as the countrys financial regulator, has announced that is has published a consultation paper on distribution of CFDs, which include in its definition leveraged Forex pairs trading.

One of the avenues being considered by the CBI - a total ban on leveraged Forex and CFD trading for retail clients.

The new rules would also create a problem for Ireland-based international brokers.

you can find the story at leaprate

The CBI’s move matches similar proposals and rules impositions made recently by other European regulators:

1. United Kingdom – the FCA has issued proposals banning bonus payments to retail clients, and limiting Forex and CFD leverage to 50x. Feedback on the FCA’s proposals are due tomorrow, March 7.
2. Cyprus – CySEC has banned bonus payments, and limited introductory leverage to 50x (with higher leverage allowed for experienced traders).
3. Germany – BaFin requires negative balance protection.
4. France and Holland – advertising ban on leveraged products.
5. Belgium – total ban on leveraged trading products.

in 10yrs forex trading will be ban every where

The Central Bank of Ireland has given brokers a second option – to introduce enhanced investor protection measures, namely:

-Introducing a maximum leverage limit of 25:1;
-brokerages are required to provide negative balance protection to all retail customers and to prominently display a detailed standardised risk warning;
-prohibiting bonuses and other promotions.

Brokers have until 29th May this year to protest this decision.

I am assuming brokers will go for this option.

look like where heading to 25:1 leverage in the near future

The Central Bank of Ireland refers to a review of a sample of the largest CFD providers in Ireland, which has found that in the two-year period up to 31 December 2016, 74% of retail clients lost money with an average loss of €2,700.


Well, now we know that the true percentage of people losing money is around 74%..

At least its not 95% as many claim. And its a severe crackdown on retail forex industry happening right now all over the world will lead to a low-risk trading environment such as 1:50 leverage, no bonuses etc. what is of course very good for newbies. Broker margins will shrink and only most reliable will stay in the game.