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Breaking: ESMA finalizes new rules to govern leveraged trading

  • #201
  • Jun 2, 2018 9:49am Jun 2, 2018 9:49am
To: Support Pepperstone AU
From: K

Can UK Citizens resident in UK register for a live Pepperstone AU account.

Please Note: We* do not need or interested in referral-details regarding registering for a live UK Pepperstone account.

* on behalf of self and others

Kind regards.
----------------------------------------------------------------
Pepperstone Support (Pepperstone)
May 30, 22:33 MSK
Hello K,

Thanks for contacting us today.
The FCA requires that all Pepperstone applicants in the UK and EEA region open accounts under our FCA entity. My apologies that we are unable to offer an Australian based account.
Please let us know if there is anything further we can do to assist.

Kind regards,

----------------------------------------------------------------

Please Note: We* do not need or interested in referral-details regarding registering for a live UK Admiral Markets account.

Hi K,

Thanks for your email enquiry.

We are aware of the recent ESMA regulatory changes in Europe.

Unfortunately at this time, UK/European residents are not able to open accounts with Admiral Markets Australia. We have received numerous enquiries regarding this point so understand that there is a customer demand there.

The Admiral Markets Group is working on making this a possibility in the near future so I will add you to a list to be contacted once this happens.

Kind Regards
TSLA: 30-Dec-22 123.18 // 16-Jun-23 260.54 **111.51%**
  • #202
  • Jun 2, 2018 10:11am Jun 2, 2018 10:11am
Quoting Phylo
To: Support Pepperstone AU From: K Can UK Citizens resident in UK register for a live Pepperstone AU account. Please Note: We* do not need or interested in referral-details regarding registering for a live UK Pepperstone account. * on behalf of self and others Kind regards. ---------------------------------------------------------------- Pepperstone Support (Pepperstone) May 30, 22:33 MSK Hello K, Thanks for contacting us today. The FCA requires that all Pepperstone applicants in the UK and EEA region open accounts under our FCA entity. My apologies...
I'm based in UK but recently opened a live account with iCMarkets AUS without any issue.
The documentation to verify my identity, address etc... has been approved as well.
If Pepperstone is not allowing to open an account in AUS just change broker.
You can open also with Dukascopy Switzerland.
  • #203
  • Edited 1:18pm Jun 2, 2018 11:20am | Edited 1:18pm
Quoting Merka
{quote} I'm based in UK but recently opened a live account with iCMarkets AUS without any issue. The documentation to verify my identity, address etc... has been approved as well. If Pepperstone is not allowing to open an account in AUS just change broker. You can open also with Dukascopy Switzerland.
Hi - thanks.

We are aware of the above and have accounts with mentioned brokers, except Pepperstone UK and AU.

The above emails were test email to determine if brokers regulated in UK and AU were accepting UK citizens/residents for AU accounts.

According to Pepperstone - The FCA requires that all Pepperstone applicants in the UK and EEA region open accounts under our FCA entity.

Admiral Markets, with UK and AU regulatory status appears to confirm the above - Unfortunately at this time, UK/European residents are not able to open accounts with Admiral Markets Australia.

One would therefore assume all brokers with dual UK & AU regulation to be in the same situation as detailed above by Pepperstone.

IC Markets AU and Dukascopy do not have UK regulation and therefore not answerable to FCA (at present).
Attached Image
- https://www.forexbrokerz.com/page/fo...kers-australia

Regards ICM - rebates - https://www.forexfactory.com/showthr...8#post11096948

Regards Dukascopy -
Attached Image
- https://www.leaprate.com/forex/broke...enue-drop-mt4/
TSLA: 30-Dec-22 123.18 // 16-Jun-23 260.54 **111.51%**
  • #204
  • Jun 2, 2018 11:36am Jun 2, 2018 11:36am
I still dont get one thing. The rules say that leverage will be limited to 1:30 on major pairs. Does that mean that this limit will only apply to each of the major pairs but not to the whole account? For example max used leverage on EU is 1:30 but you can also open trades on other pairs just not in excess to 1:30. Or will the account leverage be limited to 1:30 and thats it?
  • #205
  • Jun 2, 2018 11:55am Jun 2, 2018 11:55am
Quoting ASCap
I still dont get one thing. The rules say that leverage will be limited to 1:30 on major pairs. Does that mean that this limit will only apply to each of the major pairs but not to the whole account? For example max used leverage on EU is 1:30 but you can also open trades on other pairs just not in excess to 1:30. Or will the account leverage be limited to 1:30 and thats it?
Instrument A at x lots 1:30 requires margin of $100.
Instrument B at x lots 1:20 requires margin of $200.

If instrument A is open margin will be $100.
If instrument A & B are open margin is -> $100 + $200 = $300.
If instrument A is closed and B remains open margin decreases from £300 to $200.

Re HK regulation - your profile location -
Attached Image (click to enlarge)
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- https://www.financemagnates.com/fore...sation-regime/
TSLA: 30-Dec-22 123.18 // 16-Jun-23 260.54 **111.51%**
  • #206
  • Jun 2, 2018 12:08pm Jun 2, 2018 12:08pm
Quoting Phylo
{quote} Instrument A at x lots 1:30 requires margin of $100. Instrument B at x lots 1:20 requires margin of $200. If instrument A is open margin will be $100. If instrument A & B are open margin is -> $100 + $200 = $300. If instrument A is closed and B remains open margin decreases from £300 to $200. Re HK regulation - your profile location - {image} - https://www.financemagnates.com/fore...sation-regime/

So if I understand correctly basically the accounts max leverage will be higher than 1:30? Or am I getting it wrong?
  • #207
  • Edited 2:53pm Jun 2, 2018 12:33pm | Edited 2:53pm
That's my understanding. Prior ESMA margin calculations against instruments of different margin rates would agree.

Edit: My understanding is - leverage rate - applies to the relevant instrument class not the account as a whole.
TSLA: 30-Dec-22 123.18 // 16-Jun-23 260.54 **111.51%**
  • #208
  • Jun 2, 2018 12:35pm Jun 2, 2018 12:35pm
Hi all

if you can register as a professional trader then these new leverage rules will not apply to you, but you will lose some of the benefits that apply to retail.

yes, i did do this. swings and roundabouts...ect.

regards

Phil.
-be careful about what you allow to be put in your mind-
  • #209
  • Edited 12:53pm Jun 2, 2018 12:39pm | Edited 12:53pm
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EURUSD Margin Comparisons for 1 Lot (100,000 units)
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- https://www.financemagnates.com/fore...remain-intact/
TSLA: 30-Dec-22 123.18 // 16-Jun-23 260.54 **111.51%**
  • #210
  • Jun 4, 2018 4:04am Jun 4, 2018 4:04am
Quoting grandaevus
{image} Which currency pairs would be considered as non-major currency pairs? Major/Minor Cross-Currency pairs and/or only exotic pairs? What would be the leverage for these 21 Major/Minor Cross-Currency Pairs? 30:1 or 20:1? ------------------------------------------------------------------- AUDCAD , AUDCHF , AUDJPY , AUDNZD CADCHF , CADJPY , CHFJPY EURAUD , EURCAD , EURCHF , EURGBP , EURJPY , EURNZD GBPAUD , GBPCAD , GBPCHF , GBPJPY , GBPNZD NZDCAD , NZDJPY , NZDCHF
Here's the reply of LMAX

Quote
Dear Trader,

Thank you for your email.

In my understanding only the EURGBP classifies as major pair, the rest is non-major.
  • #211
  • Edited 9:05am Jun 4, 2018 6:27am | Edited 9:05am
Quoting grandaevus
{quote} Here's the reply of LMAX {quote}
Does not sound plausible - 30:1 on majors - 's' designates plural - sounds like a piss take

Bank For International Settlements - Foreign Exchange turnover (daily average) in April 2016 -
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Attached File(s)
File Type: pdf BFIS Forex Turnover April 2016.pdf   311 KB | 1,595 downloads
TSLA: 30-Dec-22 123.18 // 16-Jun-23 260.54 **111.51%**
  • #212
  • Jun 4, 2018 7:30am Jun 4, 2018 7:30am
Quoting magne999
Today ESMA said that it would be 30:1 on exotics and 20:1 leverage on majors i am using IC markets they are hold in Australia and dont comply to ESMA and they have 0 spread and 7 dollars a lot pr trade that is 0.7 dollar frr 0.1 lot and so on better broker doesnt exist and exelent coustomer relations with live chat and easy too veryfy dokuments and you get away from ESMA...
It’s the other way around, it’s going to be 30:1 for major currency pairs, exotics, gold and major indices will be capped at 20:1.
  • #213
  • Jun 4, 2018 7:32am Jun 4, 2018 7:32am
Breaking: Do ESMA CFD leverage rules apply to non-EU clients?

Breaking Forex News... Cyprus financial regulator CySEC has issued a clarification circular following numerous inquiries it received in the wake of ESMA’s plans to move forward with new, restrictive rules governing online brokers - 30x max leverage, negative balance protection, binary options ban...


The question - do ESMA's new rules also apply to non-EU clients?

ESMA's answer, delivered via CySEC, is very clear.

Get all the details including ESMA's full statement on the matter, always first at LeapRate.
  • #214
  • Jun 4, 2018 8:10am Jun 4, 2018 8:10am
Quoting RedWingFan
{quote} I totally agree. I use 50/1 but a move to 30/1 would not impact me at all.
The impact will be on margin requirement if for instance you decided to make another trade after hedging your first trade by moving stoploss to breakeven. because margin is calculated based on the leverage ratio (30:1) it means that you would require a margin of 10000/30 = 334 margin for every minilot trade you want to make. However with the current leverage ratios of about (100:1) you would only require 10000/100 = 100 margin for every minilot trade. so if you wish to add onto profitable trades then with the new 30:1 leverage you will not be able to do so as quickly as you can right now.
  • #215
  • Jun 4, 2018 10:46am Jun 4, 2018 10:46am
Quoting COGnizant
FXChoice - Belize Tallinex - St Vincent
Love it! I have confirmed BOTH of these brokers will NOT be affected by ESMA garbage (EU's version of Dodd-Frank scam).
  • #216
  • Jun 5, 2018 3:45am Jun 5, 2018 3:45am
Does anyone know if any non ESMA brokers have a spread bet set up available similar to IG?
  • #217
  • Jun 5, 2018 3:56am Jun 5, 2018 3:56am
Quoting grandaevus
{quote} Here's the reply of LMAX {quote}
A new reply from LMAX

Quote
Dear Sir,

Apologise for the confusion, please find below the list of the pairs considered as Majors:

  1. EUR/USD
  2. USD/JPY
  3. GBP/USD
  4. USD/CHF
  5. USD/AUD

All others are minors.

  • #218
  • Edited 7:04am Jun 5, 2018 6:48am | Edited 7:04am
Quoting grandaevus
{quote} A new reply from LMAX
Quote
Dear Sir,

Apologise for the confusion, please find below the list of the pairs considered as Majors:

 

  1. EUR/USD
  2. USD/JPY
  3. GBP/USD
  4. USD/CHF
  5. USD/AUD


All others are minors.

Concurs with - but no USDCAD !?
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TSLA: 30-Dec-22 123.18 // 16-Jun-23 260.54 **111.51%**
  • #219
  • Jun 5, 2018 7:01am Jun 5, 2018 7:01am
Quoting Phylo
{quote} Hi - thanks. We are aware of the above and have accounts with mentioned brokers, except Pepperstone UK and AU. The above emails were test email to determine if brokers regulated in UK and AU were accepting UK citizens/residents for AU accounts. According to Pepperstone - The FCA requires that all Pepperstone applicants in the UK and EEA region open accounts under our FCA entity. Admiral Markets, with UK and AU regulatory status appears to confirm the above - Unfortunately at this time, UK/European residents are not able to open accounts...
Would you or anyone else happen to know of other regulated brokers that accept EU residents for AU accounts?

You've mentioned so far that Pepperstone and Admiral Markets do not accept, and as far as I know EasyMarkets also don't accept, which currently only leaves only IC Markets as an option. I'm a Spanish resident looking for decent alternatives

10x
  • #220
  • Edited 8:06am Jun 5, 2018 7:32am | Edited 8:06am
Quoting Phylo
{quote}{quote} Concurs with - but no USDCAD !? {image}
No USDCAD. No NZDUSD. No EURGBP, EURJPY, GBPJPY.

Quote

  1. EUR/USD
  2. USD/JPY
  3. GBP/USD
  4. USD/CHF
  5. USD/AUD


These 5 Majors will have 30:1 leverage. The rest will have 20:1 leverage.
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