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UK: able to trade with more than 1:30 leverage?

  • Post #1
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  • First Post: Mar 28, 2019 7:49am Mar 28, 2019 7:49am
I know that the regulations came in in 2018, but just wondering if anyone in the UK is able to trade with more than 1:30 leverage - I am guessing not.. at least with a reputable broker.

I have not traded live in a few years, but pumped up with a strategy that deserves to be tested live... but SL is only 5 pips, and to trade a decent percentage of the account means that it is a non starter for just opening positions to grow the account decently.

1% is doable, but ideal would be 1%... that requires more leverage, or at least less margin...

Any brokers you know of?
Quoting rolandW
I know that the regulations came in in 2018, but just wondering if anyone in the UK is able to trade with more than 1:30 leverage - I am guessing not.. at least with a reputable broker. I have not traded live in a few years, but pumped up with a strategy that deserves to be tested live... but SL is only 5 pips, and to trade a decent percentage of the account means that it is a non starter for just opening positions to grow the account decently. 1% is doable, but ideal would be 1%... that requires more leverage, or at least less margin... Any brokers...
A solution is actually pretty simple. Open an account with a branch outside of UK, i.e., take IG, open with their Swiss or Australian branch (search their website).
Buy low, sell high.
Quoting rolandW
I know that the regulations came in in 2018, but just wondering if anyone in the UK is able to trade with more than 1:30 leverage - I am guessing not.. at least with a reputable broker. I have not traded live in a few years, but pumped up with a strategy that deserves to be tested live... but SL is only 5 pips, and to trade a decent percentage of the account means that it is a non starter for just opening positions to grow the account decently. 1% is doable, but ideal would be 1%... that requires more leverage, or at least less margin... Any brokers...
Luckily, I am from Brazil; as a retail trader I need minimum 1:100 trading leverage (according to my trading plan actually).
Quoting HappyMan
{quote} A solution is actually pretty simple. Open an account with a branch outside of UK, i.e., take IG, open with their Swiss or Australian branch (search their website).
I wouldn't have thought that would work?

I thought ESMA regulations were such on the citizen of a geographical area, and not the broker? May be wrong, and I will give it a try though... Could solve some big issues!
You can’t simply open an account with an ESMA regulated broker with a branch overseas. Many have tried.

There is an answer though, open an account with a reputable Australian broker, such as IC Markets or Eightcap.

I trade with IC Markets and they are perfectly good. I opened an account late last year when the ESMA regs annoyed me sufficiently. I didn’t lie on the application (by pretending to be from Aus etc) just answered all the questions honestly, and now I have an account with 500:1 leverage which I have been trading for months with no problem.

HOWEVER, there is a down side, there is no negative balance protection. The broker I use in the UK (FxPro - also very good) has negative balance protection, as do all ESMA regulated brokers, but I’ve yet to find a non ESMA broker that offer it.

Not a deal breaker as such, but it does affect how much I’m prepared to risk on each trade with them.
Quoting Forex-Jedi
You can’t simply open an account with an ESMA regulated broker with a branch overseas. Many have tried. There is an answer though, open an account with a reputable Australian broker, such as IC Markets or Eightcap. I trade with IC Markets and they are perfectly good. I opened an account late last year when the ESMA regs annoyed me sufficiently. I didn’t lie on the application (by pretending to be from Aus etc) just answered all the questions honestly, and now I have an account with 500:1 leverage which I have been trading for months with no problem....
Sorry to hear about that. When I opened an account with IG, by accident, I opened an account with their Australian branch. Could be a data point for some. Also, I've read somewhere on ff that residents of UK opened accounts with Swiss branch of IG.
Buy low, sell high.
Quoting Forex-Jedi
You can’t simply open an account with an ESMA regulated broker with a branch overseas. Many have tried. There is an answer though, open an account with a reputable Australian broker, such as IC Markets or Eightcap. I trade with IC Markets and they are perfectly good. I opened an account late last year when the ESMA regs annoyed me sufficiently. I didn’t lie on the application (by pretending to be from Aus etc) just answered all the questions honestly, and now I have an account with 500:1 leverage which I have been trading for months with no problem....
Thanks, advice taken, and now have an Aussie broker with at least 1:100 leverage (requested higher). Account almost up and running, waiting for payment acceptance.
Subs. Thanks and
Regards
I'm from the UK & have been with IC Markets for a couple of years. I recommend them and also check out Global Prime (Aus based as well). They are also excellent. (In my experience!)
IC Markets Australia will stop offering services to all non-Australian clients at the end of this month ... but they have a plan: to migrate everyone to their company in Seychelles !!

Are all Australian brokers doing this, and what's the general consensus here about having money in IC Seychelles ?
I thought last year that the ESMA margin restrictions would put a big disadvantage on my trading. However, this is not the case. I am long-term trend-following and usually size my positions to 1% of account capital, using 2 x ATR20 from entry price to find the stop-loss level. I'm trading any of the 28 common forex pairs, including AUD and NZD, but no exotics: sometimes I am in DJIA, Gold and Brent.

I find on average my margin per open position is about 4%. In theory I could therefore be running 25 forex positions simultaneously. In practice I don't find that many at any one time so I'm not likely to ever reach the margin limit. If the strategy continues to work well I might increase the trade size to 1.5%: the margin in these would still not keep me out of positions that meet my strategy rules.

Don't forget if you find a broker that offers greater than ESMA margin, you're possibly also saying goodbye to the other protections that the FCA etc. offer and these could turn out to be far more important.
  • Post #12
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  • Last Post: Jul 4, 2019 1:09pm Jul 4, 2019 1:09pm
The FCA confirmed its decision to permanently restrict the sale of CFDs and CFD-like products on a national level earlier this week.

The only instrument you can trade with leverage over 1:30 is… government bonds.
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