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FX Trading in Europe under threat - act now

  • #321
  • Feb 11, 2018 3:21pm Feb 11, 2018 3:21pm
Quoting Spreadbetter
Sadly this is the nature of trading forums, I hadn’t looked in here for ages, hadn’t posted in years, gave up my original membership and then rejoined in 2012. Gave up on it again as I became alarmed by the armies of chancers, charlatans and frauds trying to peddle their wares, or use sophist nonsense to try and gain an audience, to peel off members to join their lame services. Nothing has changed, every theme gets derailed, still only a handful of guys who are clued up, who actually get it, the rest of these discussions are just pointless. There’s...
Funny, because I came here only to post with one aim - to get traders to feedback against ESMA leverage changes and yet here we are.

Somehow reminded of that couple that ran a happiness blog, that banned all negativity. And well... RIP. Prison of their own making. ie you can't control or fight the negative, it's just there right alongside the good. Nothing's pointless, just extract the good and throw away the bad in everything. Every post. Every experience. Everything.

trading really is a beautiful thing, wrapped up to look like a dog's dinner.

Anyway luckily no-one's posted a chart here yet so I'm really leaving this time while the going's still good.

Cheers
  • #322
  • Feb 11, 2018 4:16pm Feb 11, 2018 4:16pm
Quoting triphop
{quote}.....Finspreads, back in the day used to reguarly slip me, and shade prices.......

I used to trade with Fins as well but not for about 10 years. I never used them to day-trade except for a bit of a flutter so they may have been doing what you said, a couple of pips here and there, who knows? But this was years ago surely? Back then the FSA only did a fraction of the work in SB that the FCA do.

Either way, I guess we're not talking thousands?
  • #323
  • Feb 11, 2018 9:07pm Feb 11, 2018 9:07pm
Quoting triphop
{quote} Yep, Tom. Finspreads, back in the day used to reguarly slip me, and shade prices. I couldn't trade for toffee then either, doubly insulting. It is right you should never trade size on any dealing desk account where they make the market. FXCM have a Currenex option for over £20k, can be spreadbet if you want. It's STP but not truly transparent; you never get to see the counterparty. I had an old FXCM sandpit account recently used to dupe a main trade account (STP, non spreadbet not that it matters). Execution is OK but nothing to write home...
Triphop

"I had an old FXCM sandpit account recently used to dupe a main trade account"

Could you please elaborate on what you mean by this...

Thanks
  • #324
  • Edited Feb 16, 2018 2:25am Feb 15, 2018 4:18pm | Edited Feb 16, 2018 2:25am
In reply to feline's post about leverage:

Risk 1 to make 10!

if whatever system you're using stops working, you lose the same as if you were trading a large account with strict risk management. except that the money is in your bank account, not in the broker's.
  • #325
  • Mar 27, 2018 2:18am Mar 27, 2018 2:18am
https://www.esma.europa.eu/press-new...tail-investors
  • #326
  • Mar 27, 2018 2:54am Mar 27, 2018 2:54am
Quoting fxdk
https://www.esma.europa.eu/press-new...tail-investors
Thank you very much for the update. Seems there's still a few months to go but am trying to get used to a new trading platform if I need to keep my current leverage.
  • #327
  • Mar 27, 2018 4:14am Mar 27, 2018 4:14am
Quoting fxdk
https://www.esma.europa.eu/press-new...tail-investors
Good spot.

So pretty much identical to what they proposed then. 30:1 on currencies, 20:1 on metals, negative balance protection plus a few other odds and sods.

By itself it's not too shabby - we'd have likely seen voluntary leverage reductions anyway with negative balance protection, because as it stood, the risk of multi-sigma moves fell to the client not to the brokerage. I'd have preferred higher leverage to keep less with a broker too, but meh.

It's what inevitably comes next under the auspices of 'protection' that will screw us but until then... trade while you can.

The clock ticks on.
  • #328
  • Mar 27, 2018 4:19am Mar 27, 2018 4:19am
Well, there will be an exodus to australian and offshore brokerages pretty soon. If someone wants to speculate, he is going to do so.
  • #329
  • Mar 27, 2018 4:21am Mar 27, 2018 4:21am
Yep. How annoying.

Most nannying laws like this are to protect the civil servants and politicians when people do stupid stuff and then complain loudly like only stupid people really know how to.

If you were making a profit, this makes it harder. If you were losing, now the game's over. If you're just about to get into the game, this will drive you to an off-shore"broker" registered outside the EU and if anything goes wrong ESMA and the politicians can say its nothing to do with them.
  • #330
  • Mar 27, 2018 4:21am Mar 27, 2018 4:21am
Nothing will change, brokers will move elsewhere or skip regulation completely.
It's an OTC market.
  • #331
  • Mar 27, 2018 4:32am Mar 27, 2018 4:32am
Quoting triphop
{quote} Good spot. So pretty much identical to what they proposed then. 30:1 on currencies, 20:1 on metals, negative balance protection plus a few other odds and sods. By itself it's not too shabby - we'd have likely seen voluntary leverage reductions anyway with negative balance protection, because as it stood, the risk of multi-sigma moves fell to the client not to the brokerage. I'd have preferred higher leverage to keep less with a broker too, but meh. It's what inevitably comes next under the auspices of 'protection' that will screw us but...
i think the leverege reduction is only on cfd
  • #332
  • Mar 27, 2018 4:34am Mar 27, 2018 4:34am
Quoting vladutz112
{quote} i think the leverege reduction is only on cfd
Spot forex is included.
  • #333
  • Mar 27, 2018 4:36am Mar 27, 2018 4:36am
Ouch.

Quote
NCAs’ analyses on CFD trading across different EU jurisdictions shows that 74-89% of retail accounts typically lose money on their investments, with average losses per client ranging from €1,600 to €29,000. NCAs’ analyses for binary options also found consistent losses on retail clients’ accounts.
"The meek shall inherit the earth.." Yeah right, good luck with that shit..
  • #334
  • Mar 27, 2018 4:43am Mar 27, 2018 4:43am
Huge changes these, take time out to consider your future.
"The meek shall inherit the earth.." Yeah right, good luck with that shit..
  • #335
  • Mar 27, 2018 4:45am Mar 27, 2018 4:45am
Try reading the release.


CFDs – agreed measures
The product intervention measures ESMA has agreed under Article 40 of the Markets in Financial Instruments Regulation include:
1. Leverage limits on the opening of a position by a retail client from 30:1 to 2:1, which vary according to the volatility of the underlying:
· 30:1 for major currency pairs;
· 20:1 for non-major currency pairs, gold and major indices;
· 10:1 for commodities other than gold and non-major equity indices;
· 5:1 for individual equities and other reference values;
· 2:1 for cryptocurrencies;
2. A margin close out rule on a per account basis. This will standardise the percentage of margin (at 50% of minimum required margin) at which providers are required to close out one or more retail client’s open CFDs;
3. Negative balance protection on a per account basis. This will provide an overall guaranteed limit on retail client losses;
4. A restriction on the incentives offered to trade CFDs; and
5. A standardised risk warning, including the percentage of losses on a CFD provider’s retail investor accounts.


Quoting vladutz112
{quote} i think the leverege reduction is only on cfd
"The meek shall inherit the earth.." Yeah right, good luck with that shit..
  • #336
  • Mar 27, 2018 4:49am Mar 27, 2018 4:49am
Quoting Spreadbetter
Try reading the release. CFDs – agreed measures The product intervention measures ESMA has agreed under Article 40 of the Markets in Financial Instruments Regulation include: 1. Leverage limits on the opening of a position by a retail client from 30:1 to 2:1, which vary according to the volatility of the underlying: · 30:1 for major currency pairs; · 20:1 for non-major currency pairs, gold and major indices; · 10:1 for commodities other than gold and non-major equity indices; · 5:1 for individual equities and other reference values; · 2:1 for cryptocurrencies;...
with 30:1 i guess it's game over for me
  • #337
  • Mar 27, 2018 4:55am Mar 27, 2018 4:55am
Quoting vladutz112
{quote} with 30:1 i guess it's game over for me
Already spoke to some of the brokers I am using - they are trying to find a "solution" for this. Sure, they are afraid of loosing a bunch of income when everybody runs to offshore brokers. Let's see what they are coming with.

For now, do not panic.
  • #338
  • Mar 27, 2018 4:59am Mar 27, 2018 4:59am
Quoting Drolph
Well, there will be an exodus to australian and offshore brokerages pretty soon. If someone wants to speculate, he is going to do so.
If those brokers (especially AU) will not reject EU citizens just the way the do itc of US citizens.
Return To Disorder
  • #339
  • Mar 27, 2018 5:20am Mar 27, 2018 5:20am
Quoting vladutz112
{quote} i think the leverege reduction is only on cfd
ESMA definition of CFD's when their consultation opened on this included spreadbetting.
  • #340
  • Mar 27, 2018 5:20am Mar 27, 2018 5:20am
Sums the EU up, ignores it's citizens and does as it's it pleases. Thank god the UK is leaving. Hopefully the whole circus collapses in the next few years.
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