GAIN Capital warns of unintended consequences from ESMA proposed 30x CFD leverage cap

Yes, yes, protect the investors..... It's all about leverage... No bother about slippage, requoting, criminal stop hunt...
yes protect the investors..
It's same like a FIFO protection :-)))

Dimwitted traders that don't use leverage sensibly are also shockingly ignorant of other basic fundamentals of trading. Lowering maximum leverage won't keep anyone from losing their money, it will only prolong the pain.

Yet another good reason for Britain to leave the EU.

If the EU really wants to protect investors (yes they will force people to become long term "investors rather than traders) they should put a lid on Mario Draghis pressconferences which drive markets crazy.

Just cause a few pineapple head traders dont know how to and cant make money doesnt mean the ones who can have to lose out.

There is a possibility for expressing your opinion on leaprate.com:
https://www.leaprate.com/esma-rules-questionnaire/

Low leverage doesn't protect traders, on contrary. They would win more slowly; consequently they should stay longer on trading, what would increase their risks ( and so their losses). Or they should increase volumes, what would also increase margins and comissions: and this would only favorize the brokers ( that very high leverage ( x250 ou x500) is a great danger, it is also true, but traders know that).

gain capital making a big noise perhaps a few traders might be spared with regulation

A year ago I wouldn't have had a problem, as I was only day trading the EURUSD on Max 50-1 leverage, approx. 40-1. Since the summer 2017 I've been trading 5 currency pairs, It is not uncommon for there to be 3 open positions. I trade each pair with 25-1 leverage. So when I have 3 pairs open, I'm using 75-1 Leverage.

Now I will have to Split 30-1, by 3. For me 80% x 30 / 3 = which means 8-1 leverage per currency pair.

My leverage has been split in 3.

Not sure what concerns you so much about "dimwitted" traders...

High leverage is definitely not for the beginners and below average forex retail clients. However it is a very big mistake to decrease it generally by European law. Experienced traders should be let to decide whether they want to use high margin or not. Generally ban it is a huge mistake. It will narrow down the experts' possibilities and will not help the beginners from loosing.

If they really want to keep it under control, then the MIFID rules and questionnaires might be used for this. If it can be clearly seen that somebody does not understand leveraged trading then he can be capped by low (or no) margin. If somebody has the knowledge and experience, than he should be let to use it. Later this MIFID questionnaire could be filled out again if the client believes he can prove his knowledge and willing to take higher risk. This could be the solution.

If they enact this 30x rule, than European based FX firms will be hurt by this move. It will be easy to move to Swiss for the pros or maybe to other countries (like Australia, Singapore, Cyprus, etc.) . UK FX firms will also be hurt because it was the FCA who first came with this idea... So in spite of Brexit, it seems they will enact this rule in the UK as well!

Japan has 1:25 leverage cap and is still the largest FX trading market in the world. So 1:30 shouldn't kill the business in europe. It will like Trainman said keep traders from losing there money too fast which is a good thing

lol im assuming your joking when u said that .... if u cant take the heat ..get out of the kitchen, that is what the trading business is all about ...it is as " dog eat dog as it gets ... get over yourself you get paid what your worth

the only unintended consequence will be the brokers losing out because their clients won't be able to blow their wad so fast any more. sometimes people need protection from themselves so that they don't do stupid things, and this leverage cap is a good example of a good decision by government

absolutely correct !!! leverage used correctly is a beautiful thing .... they wanna make a gazllion $$ on first trade if u cant afford to trade quit! OR give it all to me lol

i can see the europeans doing this but not the FCA. the UK has such a lax attitude to gambling and letting their people to "dumb things" if they want to. cripes, there's a william hill or ladbrokes or betfred on every block in every uk city. why would they then ban binary options or limit cfd leverage? makes no sense. this will be another breaking point between the fca and esma

very good news....for illegal offshore brokers. they'll clean up in europe if this goes ahead. junkie needs his leverage...