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Breaking: ESMA finalizes new rules to govern leveraged trading

  • #241
  • Jun 18, 2018 6:05am Jun 18, 2018 6:05am
Axitrader made no announcements. So I contacted them. I can not open account under AU web site, I am warned to open account at Axitrader UK. Looking for a broker that has low GBPJPY spread. Please help.


AxiTrader Client Services AU
If you have a live account with AxiTrader UK, the announced changes will affect all Retail clients from 1st August 2018 and includes the following conditions:

 

  1. 30:1 maximum leverage for major currency pairs which are made up of two of the following six currencies: US dollar, Euro, Japanese yen, Pound sterling, Canadian dollar or Swiss Franc.
  2. 20:1 maximum leverage for non-major currency pairs (all currency pairs continuing one of the following six currencies US dollar, Euro, Japanese yen, Pound sterling, Canadian dollar or Swiss Franc).
  3. 20:1 maximum leverage for Gold and major equity indices, which are FTSE100, CAC40, DAX30, Dow30, S&P500, NASDAQ100, Nikkei 225, ASX200, EUROSTOXX50.
  4. 10:1 maximum leverage for commodities other than gold and non-major equity indices;
  5. 5:1 maximum leverage for individual equities and other reference values;
  6. 2:1 maximum leverage for cryptocurrencies;
  7. Auto margin close out for positions set to 50% of account value.
  8. Negative balance protection.
  9. Restriction of incentives offered to clients.
  10. Standardised risk warning.

Because these changes are aimed at Retail traders, if you wish to be exempted you can opt to be classified as a Professional trader, provided you satisfy certain criteria, in the near future. However, please be aware that being classified as a Professional means you will forfeit some protections that presently cover Retail traders.

  • #242
  • Edited 6:28am Jun 18, 2018 6:12am | Edited 6:28am
How is ESMA mandatory for any local regulator? The EU is not a country, not a single jurisdiction. Financial supervision is still at the local regulators. And even how ESMA's regul. would project to contracts (accounts) that have been established prior to such regulation?
Return To Disorder
  • #243
  • Jun 18, 2018 6:54am Jun 18, 2018 6:54am
Quoting rockit
How is ESMA mandatory for any local regulator? The EU is not a country, not a single jurisdiction. Financial supervision is still at the local regulators. And even how ESMA's regul. would project to contracts (accounts) that have been established prior to such regulation?
The EU is a hybrid communist 2.0 superstate and as such they HATE the free market and will do everything in their power to destroy it. These regulations are not unique to Forex and have nothing to do with protection of the average trader/gambler. It's all about control of capital movement and centralization political power. This is not only about Forex. They want to control EVERY aspect of your life. Regulations EVERYWHERE!

In the next few years you can expect MORE regulations. Probably leverage cut down to 10:1 and higher minimum capital requirements. Every market participant will have to prove that they have the minimum net-worth to participate in trading.

It's very sad that most people in the western states cannot recognize that the EU is communist organization. It's a monster which eventually will destroy itself just like the old Soviet Union. So if you are living in the EU - prepare yourself accordingly.
  • #244
  • Jun 18, 2018 7:00am Jun 18, 2018 7:00am
Quoting IndigoPingvi
if you wish to be exempted you can opt to be classified as a Professional trader, provided you satisfy certain criteria, in the near future. However, please be aware that being classified as a Professional means you will forfeit some protections that presently cover Retail traders.
best solution
"Men Who Can Both Be Right & Sit Tight Are Uncommon" ~ Jesse Livermore
  • #245
  • Jun 18, 2018 7:04am Jun 18, 2018 7:04am
Quoting alphaomega
{quote} The EU is a hybrid communist 2.0 superstate and as such they HATE the free market and will do everything in their power to destroy it. These regulations are not unique to Forex and have nothing to do with protection of the average trader/gambler. It's all about control of capital movement and centralization political power. This is not only about Forex. They want to control EVERY aspect of your life. Regulations EVERYWHERE! In the next few years you can expect MORE regulations. Probably leverage cut down to 10:1 and higher minimum capital...
UK might have done the right thing in brexiting
  • #246
  • Jun 18, 2018 7:10am Jun 18, 2018 7:10am
Quoting michisuperfr
{quote} best solution
Pro. Traders aren't eligible for investor compensation scheme (up to Ł50,000 for FCA regulated brokers) in case of insolvency.

In other words, if you are classified as a professional trader, it doesn't matter where you trade. Offshore broker or a FCA regulated broker, it would be the same.

I think best solution is to open an account at one of the reputable Australian brokers and just wait 3 months for ESMA to reconsider their decision.
  • #247
  • Jun 18, 2018 7:30am Jun 18, 2018 7:30am
Quoting michisuperfr
{quote} best solution
Did you see the requirements? I don't even come close...
  • #248
  • Jun 18, 2018 7:35am Jun 18, 2018 7:35am
Quoting IndigoPingvi
{quote} Did you see the requirements? I don't even come close...
For a client to be categorised as Professional, a client needs to satisfy at least 2 out of the 3 criteria below:

  1. He has carried out transactions in significant size on the relevant market at an average of 10 trades per quarter over the previous 4 quarters
  2. The size of the financial portfolio is minimum Euros 500’000
  3. The client works or has worked in the financial sector for at least one year in a professional position, which requires knowledge of the transactions or services envisaged

  • #249
  • Jun 18, 2018 7:48am Jun 18, 2018 7:48am
Quoting grandaevus
{quote} Pro. Traders aren't eligible for investor compensation scheme (up to Ł50,000 for FCA regulated brokers) in case of insolvency. In other words, if you are classified as a professional trader, it doesn't matter where you trade. Offshore broker or a FCA regulated broker, it would be the same. I think best solution is to open an account at one of the reputable Australian brokers and just wait 3 months for ESMA to reconsider their decision.
Yep but most offshore brokers are bucket shops that will scam you with their trade execution.

I'd rather use a good broker with solid leverage (less margin needed) and take the risk of broker insolvency
"Men Who Can Both Be Right & Sit Tight Are Uncommon" ~ Jesse Livermore
  • #250
  • Jun 18, 2018 7:58am Jun 18, 2018 7:58am
Quoting michisuperfr
{quote} Yep but most offshore brokers are bucket shops that will scam you with their trade execution. I'd rather use a good broker with solid leverage (less margin needed) and take the risk of broker insolvency

What about Australian Brokers (regulated by ASIC)? Or Swiss Brokers (regulated by FINMA)?
  • #251
  • Edited Jun 19, 2018 8:24pm Jun 18, 2018 1:59pm | Edited Jun 19, 2018 8:24pm
You can use IC markets greate for scalping with a fixed commision 7 dollars pr.Standard lot and 0 spread on majors and 0-0.6 on gbp/jpy and other exotics but its at 0.2-0.3 usually and they are australian based and dont have too comply with ESMA i have asked them in the chat...Also have greate coustomer support i am very happy with them here is a link too open account with them: { information deleted by staff, per membership policy }
You win some you loose some do both with peace of mind
  • #252
  • Edited Jun 19, 2018 8:25pm Jun 18, 2018 2:21pm | Edited Jun 19, 2018 8:25pm
{ information deleted by staff, per membership policy } are based in (and regulated in) Australia, well worth a look.
  • #253
  • Edited Jun 19, 2018 8:24pm Jun 18, 2018 2:41pm | Edited Jun 19, 2018 8:24pm
Too get the cheapest of the accounts with the 7 dollars pr lot you need too open a true ECN account not a standard account you can also open a demo...And they have both mt4-mt5 and Ctrader: { information deleted by staff, per membership policy }
You win some you loose some do both with peace of mind
  • #254
  • Edited Jun 20, 2018 7:25am Jun 19, 2018 8:02am | Edited Jun 20, 2018 7:25am
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- http://www.icmarketsforexrebates.com
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We have no referral or promotion connection to to or agreements with above commercial content. Post content is purely informational
TSLA: 30-Dec-22 123.18 // 16-Jun-23 260.54 **111.51%**
  • #255
  • Edited 8:36am Jun 19, 2018 8:20am | Edited 8:36am
Quoting IndigoPingvi
...Looking for a broker that has low GBPJPY spread. Please help....
Sufficient information and links in the thread - Suggest: Read the thread - demo and contact suitable brokers

Comment: What may not be in the thread is Dukascopy Swizz accepts EU Residents - Lowest margin = 1:200. If 1:200 acceptable bonus of 100,000 CHF compensation. However, only personal certainty is knowledge - suggest: contact Dukascopy Swiss if interested.
TSLA: 30-Dec-22 123.18 // 16-Jun-23 260.54 **111.51%**
  • #256
  • Edited 10:24pm Jun 20, 2018 12:48pm | Edited 10:24pm
Quoting magne999
You can use IC markets greate for scalping with a fixed commision 7 dollars pr.Standard lot and 0 spread on majors and 0-0.6 on gbp/jpy and other exotics but its at 0.2-0.3 usually and they are australian based and dont have too comply with ESMA i have asked them in the chat...Also have greate coustomer support i am very happy with them here is a link too open account with them: { information deleted by staff, per membership policy }
Quoting tradesimply
{ information deleted by staff, per membership policy } are based in (and regulated in) Australia, well worth a look.
Quoting magne999
Too get the cheapest of the accounts with the 7 dollars pr lot you need too open a true ECN account not a standard account you can also open a demo...And they have both mt4-mt5 and Ctrader: { information deleted by staff, per membership policy }
You can PM above quoted posters for their affiliate referral links (removed) - [which they know is not a rebate to you] - so that they can benefit financially from commissions from your signing and trading or you can review - THE NON PARTNER - NO BS - CHEAPEST OPTION - at the post above (HIGHEST REBATES) which includes the below Q & A.

This fact has been posted - NUMEROUS TIMES - on the thread..............savvy??!!

Draw - your - own - conclusions !!!!!!
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We have no referral or promotion connection to to or agreements with above commercial content. Post content is purely informational
TSLA: 30-Dec-22 123.18 // 16-Jun-23 260.54 **111.51%**
  • #257
  • Edited Jun 21, 2018 1:14am Jun 20, 2018 2:11pm | Edited Jun 21, 2018 1:14am
Quoting magne999
So how many lotz can you trade with 30:1 leverega on a 1000 dollar account....It will not impact me because i am working with ic markets and they are in australia and said too me that they will not have to follow esma...IC markets the only broker too use when scalping 0-0.6 spread 0-0.1 on majors and 0-0.6 on gbp/jpy all the pairs i need and they take 7 dollars a lot for opening trade cheaper is impossible
Quoting Zdrux
It is very easy to calculate.

1 lot = $100,000

If you wish to trade $100,000 with 30x leverage, you will require 100,000 / 30 = $3333.33~

Keep in mind your broker will have a "close out" percentage of their own when your account gets too low, probably around 33% so you may need to add that to the calculation.

If you have a $1,000 account; you will be able to trade $1000 x 30 (leverage) = $30,000; which is 0.3 lots.
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Balance = $1,000
Margin Rate: 1:30
Lots: 0.3 lots (30,000 units)*
Required Margin: $1,161 ................??

*ABC: 0.01 lot = 1,000 units, 0.1 lot = 10,000 units, 0.3 lot = 30,000 units.

Retail traders are essentially self hired - required mandatory entrance qualifications - zero.

Nonsense calculations aside, the fundamentals of selling and marketing - amateur or professional - is to first create interest and discussion around a product - lure then in - then wham ! - hit them with a bate referral (or other appropriate) solution disguised as the solving helping hand.

Calculator source: https://uk.investing.com/tools/margin-calculator

How margins work - https://www.forexfactory.com/showthread.php?p=8896625#post8896625
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We have no referral or promotion connection to to or agreements with above commercial content. Post content is purely informational
TSLA: 30-Dec-22 123.18 // 16-Jun-23 260.54 **111.51%**
  • #258
  • Jul 3, 2018 1:24pm Jul 3, 2018 1:24pm
It looks like it something can be done about this. Who is interested in having a look at it and maybe a thread for it? This two month period is important. Could be good if looked at by more individuals.
  • #259
  • Jul 3, 2018 1:29pm Jul 3, 2018 1:29pm
Here's some other threads I was having a look at:

https://www.forexfactory.com/news.php?do=news&id=773120
https://www.forexfactory.com/showthr...11205856#reply


(Someone said this)
Quoting Drolph
Please do not bloat the forum - use the search button! There are tons of threads dealing with this topic already.
  • #260
  • Jul 3, 2018 2:08pm Jul 3, 2018 2:08pm
Quoting Jdf
It looks like it something can be done about this. Who is interested in having a look at it and maybe a thread for it? This two month period is important. Could be good if looked at by more individuals.
There is nothing you can do about it. Talking, complaining and writing letters is pure waste of time in the context of dictatorship!

For now you can open accounts with some brokers outside EU.
But this will be the next step of the regulators. Just wait and you will see....

Also keep in mind that the new 30:1 leverage is only temporary.
The long term plan is to ban all financial markets. Even the stock market. (My info is solid)
The day will come when you will not be able to trade any financial instruments.
All cash will be electronic and they will not even allow you to deposit money in certain accounts and businesses. Or to send outside EU.

EU = COMMUNISM 2.0

The EU dictatorship will continue......until we grab the guns.
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