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FCA imposes bonus ban and leverage cap for CFDs

  • #121
  • Jul 17, 2017 4:13am Jul 17, 2017 4:13am
Quoting Forex-Jedi
I'm annoyed at the proposals, they seem to have been brought about because a large number of clueless newbies lost all their money, complained, were told by their broker "sorry that's the market, you agreed you understood that" and so went whinging to the FCA. When I was a newbie, I took care to understand what I was getting into, exactly so I didn't unexpectedly lose large sums. A Leverage cap means traders have to have more money on deposit with brokers. Ask clients of Alpari how that worked out for them. It also means traders with less money...
In the UK, FX brokers sponsor Premiership and Championship football/soccer shirts, so the average football punter are the ones complaining!!

Here is an update:

Breaking: FCA Delays New Forex and CFDs Regulations until 2018
The UK FCA has delayed its new restrictions on CFDs and forex trading as ESMA looks into its own measures.

https://www.financemagnates.com/fore...ons-till-2018/

https://www.leaprate.com/forex/regul...view-industry/
All Assets NAS100 GLD BTC AUS JPY GBP All Time Return: 18.2%
  • #122
  • Nov 29, 2017 7:45am Nov 29, 2017 7:45am
So, is x50 leverage set for all FCA brokers in January?
  • #123
  • Dec 18, 2017 9:43pm Dec 18, 2017 9:43pm
FCA (UK) will follow ESMA, Rules to be implemented 3rd Jan 2018.

Maximum Leverage allowed 30-1 however 5-1 for more exotic pairs.

Worse than expected!!

Some of us will go offshore, if possible. I don't know how my Dukascopy account will be affected.

https://www.ft.com/content/1bb3cdde-...2-916d4fbac0da

FXCM
https://www.financemagnates.com/fore...s-restrictive/

Saxo Bank is happy
https://www.financemagnates.com/fore...age-arms-race/

Gain Capital
https://www.leaprate.com/forex/regul...-leverage-cap/


So now Max Leverage is 30-1, those losing will now become winners (sarcasm).

FX brokers should have never advertised to the mainstream punter; Football and F1 sponsors.
All Assets NAS100 GLD BTC AUS JPY GBP All Time Return: 18.2%
  • #124
  • Dec 18, 2017 10:54pm Dec 18, 2017 10:54pm
Inserted Video
  • #125
  • Dec 18, 2017 11:26pm Dec 18, 2017 11:26pm
Quoting alphaomega
https://www.youtube.com/watch?v=JSUIQgEVDM4
I like the Doors.
All Assets NAS100 GLD BTC AUS JPY GBP All Time Return: 18.2%
  • #126
  • Dec 19, 2017 2:10am Dec 19, 2017 2:10am
Quoting Phil_GMT
FCA (UK) will follow ESMA, Rules to be implemented 3rd Jan 2018. Maximum Leverage allowed 30-1 however 5-1 for more exotic pairs.
Source for your claim?

Nothing is implemented - the mentioned date is the time when Mifid II is getting live, thats it. Everything else is a proposal which is beeing topic of discussion. And nearly all brokers up to date signal their worries about the heavy leverage cap. If people want to speculate, they are going to do so. If not regulated within the EU, than in more shady places and/or with more shady assets. ESMA will realize that sooner or later.
  • #127
  • Dec 19, 2017 8:02am Dec 19, 2017 8:02am
Quoting Drolph
{quote} Source for your claim? Nothing is implemented - the mentioned date is the time when Mifid II is getting live, thats it. Everything else is a proposal which is beeing topic of discussion. And nearly all brokers up to date signal their worries about the heavy leverage cap. If people want to speculate, they are going to do so. If not regulated within the EU, than in more shady places and/or with more shady assets. ESMA will realize that sooner or later.
03 Jan 2018: MiFID II rules to come into effect for ALL Investment firms in the UK
http://www.mifid2.info/mifid-ii-time...mentation.html

https://www.forexfactory.com/showthr...0#post10092290 earlier post

The ESMA leverage cap will be included in Mifid II, its not just speculation. Mifid 2 is already a year late.
They have had an extra year to decide. There are only 7 working days between now and 3rd Jan 2018, nothing will change between that time 30-1 Leverage Cap in the UK, I'm calling it.
All Assets NAS100 GLD BTC AUS JPY GBP All Time Return: 18.2%
  • #128
  • Dec 19, 2017 9:05am Dec 19, 2017 9:05am
There is a public consultation in January 2018 on this matter.

Source: https://www.esma.europa.eu/press-new...binary-options
  • #129
  • Dec 19, 2017 11:54am Dec 19, 2017 11:54am
https://twitter.com/ESMAComms/status/941781819669864448
  • #130
  • Jan 26, 2018 1:40am Jan 26, 2018 1:40am
write your opinion and tell the brokers to do the same

https://twitter.com/ESMAComms/status/953884975807549441

https://www.esma.europa.eu/document/...ces-and-binary
  • #131
  • Jan 26, 2018 2:43am Jan 26, 2018 2:43am
Clearly we have mixed feelings about the news. However to much excuses are given for our failure in forex. Free will decides the leverage we use and if we buy or sell. All the regulation in the world won't change the way we perceive the market. Yes, noobs lose money but so do pros. We have to take forex education seriously because if we don't we will only keep losing money no matter the leverage. Do you all agree?
  • #132
  • Jan 26, 2018 5:05am Jan 26, 2018 5:05am
4170 replies so far https://replytoesma.trading/#proposal
  • #133
  • Last Post: Feb 19, 2020 8:55am Feb 19, 2020 8:55am
The leverage restrictions and other regulations adopted in the summer of 2018 saved UK forex and CFDs traders annually some 451 million pounds, latest Sector Views annual report of the British Financial Conduct Authority (FCA), reveals.

According to the report the persistent lower interest rates drive many retail investors from safer long term investments to high risk assets like CFDs and mini bonds.

According to the FCA data before the new rules were adopted in August 2018 some 800 000 active UK traders held in live client accounts a total of 1,5 billion GBP, of which over two thirds were lost within a year.
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