EU is lowering leverage. What now? | Forex Factory

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EU is lowering leverage. What now?

  • #1
  • First Post: Jun 26, 2018 10:15am Jun 26, 2018 10:15am
Hi. As we know they changed the law so the leverage is practically gone ( its 1:30 for forex ) so i was just wondering are there any non EU brokers that will be filling the gap? I cant find any discusions about it..
  • #2
  • Jun 26, 2018 4:41pm Jun 26, 2018 4:41pm
Quoting Gbdaja
Hi. As we know they changed the law so the leverage is practically gone ( its 1:30 for forex ) so i was just wondering are there any non EU brokers that will be filling the gap? I cant find any discusions about it..
Hi, I am British living in Spain. I have an account at FXTM. The leverage is 1:400
  • #3
  • Jun 27, 2018 12:57am Jun 27, 2018 12:57am
Please do not bloat the forum - use the search button!

There are tons of threads dealing with this topic already.
  • #4
  • Jul 2, 2018 6:51am Jul 2, 2018 6:51am
Quoting Gbdaja
Hi. As we know they changed the law so the leverage is practically gone ( its 1:30 for forex ) so i was just wondering are there any non EU brokers that will be filling the gap? I cant find any discusions about it..
Yes, there are a few non-EU brokers filling the gap, primarily in Australia (like IC Markets).

There are some discussions about this topic, but surprisingly few given the huge change in leverage taking place in less than a month!

All the best

TS
  • #5
  • Jul 3, 2018 2:27am Jul 3, 2018 2:27am
I was just thinking of this and making a thread with something like this as a subject: Do something about EU regulation terrible lowering of leverage. Maybe start a new one if agreed?

It seems something can be done about it. But would be best if done by more then one individual because of some reasons. Are there other people interested in this?
  • #6
  • Jul 3, 2018 11:00am Jul 3, 2018 11:00am
I've asked XM in their Broker Discussion if I can open an Account with their Australian Brand, as they are offering 500:1 Leverage and bonuses there. Let's see what they say
  • #7
  • Jul 3, 2018 1:15pm Jul 3, 2018 1:15pm
Making the "deal" with the broker is unreliable. It pollutes the good trading. Look up all these brokers on Forexpeacearmy.
  • #8
  • Jul 4, 2018 11:34am Jul 4, 2018 11:34am
Quoting RichardNaylo
{quote} Hi, I am British living in Spain. I have an account at FXTM. The leverage is 1:400

where is FXTM from?
  • #9
  • Jul 12, 2018 8:59am Jul 12, 2018 8:59am
If you think the leverage is low for Forex you should check out the leverage for crypto CFDs, they lowered it to 1:2.
  • #10
  • Jul 16, 2018 3:03am Jul 16, 2018 3:03am
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;

What now?
- Almost all EU brokers that I've checked (and/or have accounts with) are sending out emails that you can register/apply for a professional trader account.
With such an account you'll be able to keep the higher leverage but you'll no longer be using negative balance protection and the broker will not be obligated to provide the best trading conditions (which he is with retail trading accounts).
Personally, I'd prefer trading major pairs but keeping the best trading conditions and all the protections in place.
This means that I`ll have to put more money into my account to keep the margin levels high enough so I am not stopped out automatically but it's worth it, IMHO.
  • #11
  • Jul 16, 2018 4:00am Jul 16, 2018 4:00am
Quoting bradley79
Almost all EU brokers that I've checked (and/or have accounts with) are sending out emails that you can register/apply for a professional trader account.
Are there no unregulated brokers within the EU?
Return To Disorder
  • #12
  • Jul 16, 2018 4:22am Jul 16, 2018 4:22am
Quoting rockit
{quote} Are there no unregulated brokers within the EU?
There are.
I was referring to the regulated ones.
My bad.

The main issue is that unregulated brokers can just close and/or just steal your money. Which is why I do not consider them an option.

The other thing is that you can try to find a broker in a country that is located in Europe but is not a part of the European Union.
Switzerland, Norway, Iceland and Liechtenstein are such countries.
I would recommend finding a broker regulated in any of those countries and see if they can/will accept you as a retail client.

So, what I'd look for in the first place:
1. Regulated broker
2. Segregated accounts
3. Have a trader/investor compensation in place(insurance). For Cyprus brokers that is Investor Compensation Fund (ICF) in the different countries/regions it's called with different names but it's essentially the same thing.
  • #13
  • Jul 18, 2018 9:49am Jul 18, 2018 9:49am
I would have to agree with bradley79. I prefer to stay as retailer and try to adapt my trading style to the new lower leverage levels, as the “professional status “ brings too much uncertainty to me.
  • #14
  • Jul 27, 2018 3:19am Jul 27, 2018 3:19am
Few days left till Esma coming into force. What do you guys think, is it going to change the landscape of the Europe based brokerages? I personally would not be surprised if we see some companies closing down their business.
  • #15
  • Jul 27, 2018 7:57am Jul 27, 2018 7:57am
It's not a surprise to me, and binary option is completely banned which is good.
But for Forex, I started trading in unregulated broker which is good for me.
  • #16
  • Jul 30, 2018 9:04am Jul 30, 2018 9:04am
Quoting Gbdaja
Hi. As we know they changed the law so the leverage is practically gone ( its 1:30 for forex ) so i was just wondering are there any non EU brokers that will be filling the gap? I cant find any discusions about it..
I'll be looking at Australian brokers, like IG Australia or Cities Index Australia
  • #17
  • Jul 31, 2018 4:32am Jul 31, 2018 4:32am
Quoting Lewy
{quote} I'll be looking at Australian brokers, like IG Australia or Cities Index Australia
Same here :-)
  • #18
  • Jul 31, 2018 7:14am Jul 31, 2018 7:14am
Quoting NoEsma
I've asked XM in their Broker Discussion if I can open an Account with their Australian Brand, as they are offering 500:1 Leverage and bonuses there. Let's see what they say

Hey guys. Forgot to update this thread. I managed to open an Account with XM Australia, and everything is like pre-Esma-assholes-era!

Leverage 500:1, and awesome service till now so really happy with them. Hope you guys found what you were looking for
  • #19
  • Jul 31, 2018 7:49am Jul 31, 2018 7:49am
fxpro and activtrades can open accounts now under bahamas
  • #20
  • Aug 1, 2018 2:46am Aug 1, 2018 2:46am
Quoting NoEsma
{quote} Hey guys. Forgot to update this thread. I managed to open an Account with XM Australia, and everything is like pre-Esma-assholes-era! Leverage 500:1, and awesome service till now so really happy with them. Hope you guys found what you were looking for
That's great news! Good luck with it :-)
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