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UK online broker shares hammered by ESMA leverage proposals

  • #41
  • Mar 27, 2018 7:05am Mar 27, 2018 7:05am
Quoting chrisdk2017
https://www.financemagnates.com/fore...-kills-binary/ will get implemented, which means FX is dead in the EU.
Forex is still going the USA. We have had 50 - 1 leverage here for years, with 20 - 1 on the exotics. FX was never meant to replace a job. It is wealth building tool over time.

Quoting Robertk
To those saying its the end, please quit trading FX now. Very short-sided, and if you merely rely on leverage this game is not for you. That being said the only thing that frustrates me about their agreed proposals is the fact they are limiting leverage drastically on non-major pairs. To me that is complete bullshit because these pairs can very well be traded to diversify risk/currency pyramid on... I don't understand why they asked for our opinion, because i am quite sure they did not consider changing anything within their proposal's in the first...
They asked your opinion for the same reason you vote. To give you the illusion of choice.
If you are good at something, never do it for free--Joker
  • #42
  • Mar 27, 2018 7:45am Mar 27, 2018 7:45am
Quoting Spreadbetter
Fascinating, so a paranoid conspiracy theorist, busily squirreling away for scandal, can’t accept the obvious reason why ESMA has finally acted to protect consumers..er, ok. {quote}
I’m not . And I’m sure some of the committee members honestly think it is for the good of the people. Unfortunately - the truth is usually what has not been said between the lines.
  • #43
  • Mar 27, 2018 7:50am Mar 27, 2018 7:50am
Quoting GU-Night
{quote} Negative balance protection --> You can lose the balance of your trading account. High leverage --> You can deposit less funds to your broker --> less money in the trading account = Less risk. Low leverage --> You have to deposit more funds to your broker --> more money in the trading account = More risk.
The real question is - why the ESMA considers broker more safe place to keep my funds than a regular bank for example?!

In other words - if now I need to put 10000$ in the broker to earn safely a 3000$ in 1 year, with new rules I need to put 25000$ in the broker to do the same. So the additional 15000 will be on safer place in the broker account?! I doubt that...I prefer them in my bank account.
  • #44
  • Mar 27, 2018 8:06am Mar 27, 2018 8:06am
And there is also FCA statement on ESMA’s temporary product intervention measures applied to retail CFD and binary option products on their website:

https://www.fca.org.uk/news/statemen...binary-options

Best to all,
tayette
Per aspera ad astra
  • #45
  • Mar 27, 2018 9:18am Mar 27, 2018 9:18am
Quoting Spreadbetter
Interestingly, both IG and CMC shares aren’t down that much today... {quote}

I'm sure the industry expected the proposals would go through - I did. So I guess the "bad" news is already in the price.
  • #46
  • Mar 27, 2018 9:52am Mar 27, 2018 9:52am
Yes and no, at one point IG lost circa 10% today, but recovered. It’s all about client numbers now. Analysts are also calibrating that if/when the U.K. exits Europe (and losses passport rights btw) it won’t be subject to the restrictions.

Quoting tomorton
{quote} I'm sure the industry expected the proposals would go through - I did. So I guess the "bad" news is already in the price.
"The meek shall inherit the earth.." Yeah right, good luck with that shit..
  • #47
  • Mar 27, 2018 9:55am Mar 27, 2018 9:55am
face palm.

Quoting Drolph
{quote} 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.
"The meek shall inherit the earth.." Yeah right, good luck with that shit..
  • #48
  • Jun 13, 2018 3:01pm Jun 13, 2018 3:01pm
New here - and I haven't opened an account anywhere yet, because I'm trying to figure out the broker that is the least likely to cause me to blow up. Does Plus500 immediately allow you to get max leverage, and is it hard to throttle it down for practice? How do the other firms handle this?

Lastly, I read that the European regulators are requiring maximum leverage to be lowered significantly across a bunch of different asset classes - how do you guys deal w this? Put up a bigger deposit or just move to a different broker outside EU...feel like if it's move to a different broker I might as well avoid any of the European CFD firms and just go offshore immediately.
  • #49
  • Last Post: Jun 14, 2018 3:20am Jun 14, 2018 3:20am
Quoting RonaldJWW
New here - and I haven't opened an account anywhere yet, because I'm trying to figure out the broker that is the least likely to cause me to blow up. Does Plus500 immediately allow you to get max leverage, and is it hard to throttle it down for practice? How do the other firms handle this? Lastly, I read that the European regulators are requiring maximum leverage to be lowered significantly across a bunch of different asset classes - how do you guys deal w this? Put up a bigger deposit or just move to a different broker outside EU...feel like if...
Hi Ronald .
This thread is more updated , here https://www.forexfactory.com/showthr...750612&page=12
you can find the answers to your questions.
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