UK online broker shares hammered by ESMA leverage proposals | Forex Factory

Options

Go to
Permalinks
Print Thread

Similar Threads

Non ESMA broker with Micro Lots 75 replies

Reliable Broker with nano lot, micro lot broker, leverage 1:400, 1:500 35 replies

Differences in Trading Behavior under new ESMA leverage rules 2 replies

Looking for China H shares and China A shares index CFD broker 1 reply

good broker needed for a online broker venture 3 replies

Attachments: UK online broker shares hammered by ESMA leverage proposals
Exit Attachments

UK online broker shares hammered by ESMA leverage proposals

  • #1
  • First Post: Dec 18, 2017 6:34am Dec 18, 2017 6:34am
Shares of the leading FCA regulated UK online brokers traded down sharply on Monday morning, following proposals made late Friday by pan-European financial regulator ESMA to enact fairly severe restrictions on leveraged FX and CFD tradingg.

https://www.leaprate.com/forex/regul...500-17-cmc-14/
  • #2
  • Dec 18, 2017 10:16am Dec 18, 2017 10:16am
30:1 crazy
  • #3
  • Dec 18, 2017 10:46am Dec 18, 2017 10:46am
Quoting PoundTrader
30:1 crazy
This will be the end for retail fx in Europe! (This is their goal) Look at what happened to the market in US and Japan. Very few people still trade FX compared to 7-8 years ago.

Considering the fact that now volatility is close to all time low, forex will become quite unattractive for small traders. We will have to deposit at least 4K to trade with just 1 Lot and one pair. So multi currency trading will becomes very expensive. In order to apply diversified trading systems with large number of positions, traders will have to deposit at least 20-30K. Anything smaller is just not worth it. With such low leverage it takes forever to double your account.

So it seems that Cripto currencies are the future. But you have to trade them on unregulated markets.

We are screwed!
  • #4
  • Dec 18, 2017 11:15am Dec 18, 2017 11:15am
Quoting alphaomega
{quote} This will be the end for retail fx in Europe! (This is their goal) Look at what happened to the market in US and Japan. Very few people still trade FX compared to 7-8 years ago. Considering the fact that now volatility is close to all time low, forex will become quite unattractive for small traders. We will have to deposit at least 4K to trade with just 1 Lot and one pair. So multi currency trading will becomes very expensive. In order to apply diversified trading systems with large number of positions, traders will have to deposit at least...
how would you see cryptos as the future in the same European brokers if this enacted?

"ESMA’s proposal is to impose a hard 30x leverage cap on all Forex and CFD trading in Europe. And, for more volatile instruments (which it didn’t as yet define), maximum leverage of as low as 5x."
i would think that BTC ( and cryptos as a group) with up to 30% a day price change would surely be considered to be "more volatile" vs. EurUsd, or gold, etc.
there is always, always another trade!!
  • #5
  • Dec 18, 2017 11:24am Dec 18, 2017 11:24am
Time to increase my risk per trade before this comes into force!
  • #6
  • Dec 18, 2017 11:24am Dec 18, 2017 11:24am
better to make forex centralized market that kill leverage ..
so in futures you need about 1k or less to open 1 lot (day trading margin)
and in forex 4k !!
  • #7
  • Dec 18, 2017 11:36am Dec 18, 2017 11:36am
indeed, it will the end for retail fx
  • #8
  • Dec 18, 2017 11:43am Dec 18, 2017 11:43am
Quoting DavidRP
indeed, it will the end for retail fx
not necessarily.
for the time it would force traders to ASIC brokers, mainly, and probably to a lessen extent to some bigger names broker, though in a lessen regulated jurisdiction.

as FOREX.com said, only approx 20% of their volume comes from EU and US traders....i am sure they have and can have licence in less regulated places if not yet set up.
same for many others, FXPRO, XM, etc...
there is always, always another trade!!
  • #9
  • Dec 18, 2017 11:44am Dec 18, 2017 11:44am
Quoting profitfarmer
{quote} not necessarily. for the time it would force traders to ASIC brokers, mainly, and probably to a lessen extent to some bigger names broker, though in a lessen regulated jurisdiction. as FOREX.com said, only approx 20% of their volume comes from EU and US traders....i am sure they have and can have licence in less regulated places if not yet set up. same for many others, FXPRO, XM, etc...
ASIC brokers are moving us to their UK branches...
  • #10
  • Dec 18, 2017 11:52am Dec 18, 2017 11:52am
Quoting alphaomega
{quote} This will be the end for retail fx in Europe! (This is their goal) Look at what happened to the market in US and Japan. Very few people still trade FX compared to 7-8 years ago. Considering the fact that now volatility is close to all time low, forex will become quite unattractive for small traders. We will have to deposit at least 4K to trade with just 1 Lot and one pair. So multi currency trading will becomes very expensive. In order to apply diversified trading systems with large number of positions, traders will have to deposit at least...
i agree, also central banks never like the forex market if they can't control there currency
  • #11
  • Dec 18, 2017 11:54am Dec 18, 2017 11:54am
Quoting DavidRP
{quote} ASIC brokers are moving us to their UK branches...
not much better because U.K. and FCA brokers will only be able to offer 50:1 from what im hearing
  • #12
  • Dec 18, 2017 12:01pm Dec 18, 2017 12:01pm
Let them gossip and talk, lets see what really happens
  • #13
  • Dec 18, 2017 12:05pm Dec 18, 2017 12:05pm
Quoting venividivici
Let them gossip and talk, lets see what really happens
we said the same thing in the U.S. then it happen 50:1 leverage
  • #14
  • Dec 18, 2017 12:07pm Dec 18, 2017 12:07pm
Quoting PoundTrader
{quote}we said the same thing in the U.S. then it happen 50:1 leverage
Are you panicking? Im not really..Theres always going to be alternatives..so relax.

Big boys need it..not just the little guy.
  • #15
  • Dec 19, 2017 1:04am Dec 19, 2017 1:04am
Quoting venividivici
{quote} Are you panicking? Im not really..Theres always going to be alternatives..so relax. Big boys need it..not just the little guy.
lol me panic, i just know whats coming
  • #16
  • Dec 19, 2017 2:08am Dec 19, 2017 2:08am
Here is the original ESMA news :
https://www.esma.europa.eu/press-new...binary-options
  • #17
  • Dec 19, 2017 2:28am Dec 19, 2017 2:28am
Quoting PoundTrader
{quote}lol me panic, i just know whats coming
No, you are panicing.

"There are a few things to note in all this. First, ESMA doesn’t really have the ability to enforce its proposals on individual country regulators. [..]
Also, the FCA is in process of “exiting” ESMA alongside the UK’s Brexit from Europe, and might not go as far as ESMA is suggesting for the rest of Europe. "

Everything is topic of discussion up to now. All brokers signaled their worries about the heavy leverage cap. Lets see what remains of the current proposal in the end.
  • #18
  • Dec 19, 2017 4:32am Dec 19, 2017 4:32am
Quoting Drolph
{quote} No, you are panicing. "There are a few things to note in all this. First, ESMA doesn’t really have the ability to enforce its proposals on individual country regulators. [..] Also, the FCA is in process of “exiting” ESMA alongside the UK’s Brexit from Europe, and might not go as far as ESMA is suggesting for the rest of Europe. " Everything is topic of discussion up to now. All brokers signaled their worries about the heavy leverage cap. Lets see what remains of the current proposal in the end.
im in the U.S. my panic days came and went a long time ago.
  • #19
  • Dec 19, 2017 11:47am Dec 19, 2017 11:47am
Quoting Imperial888
Wtf ... first U.S. then now Europe? Which country broker are we left with?
who knows, i hope they don't crack down on offshore brokers
  • #20
  • Dec 19, 2017 4:33pm Dec 19, 2017 4:33pm
Quoting mbrown
Time to increase my risk per trade before this comes into force!
0 traders viewing now