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Breaking: ESMA finalizes new rules to govern leveraged trading

  • #261
  • Jul 3, 2018 2:34pm Jul 3, 2018 2:34pm
Learn the history! Ironically it's coming from the left..

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  • #262
  • Jul 3, 2018 2:52pm Jul 3, 2018 2:52pm
Quoting alphaomega
{quote} There is nothing you can do about it. Talking, complaining and writing letters is pure waste of time in the context of dictatorship!
This is my exact point. Or maybe a reason. It all doesn't look bad at all. But still that sort of interpretations: dictatorship.

The left in the west has many good things. Personally I can't be pinned to a political influence. Anyway, there doesn't need to be a problem.
  • #263
  • Jul 3, 2018 2:57pm Jul 3, 2018 2:57pm
Quoting alphaomega
{quote} Talking, complaining and writing letters
This needs conversation. I wasn't looking at this dead, non pre provisioned kind of thing. But at the same time I don't want to just post it.
  • #264
  • Jul 3, 2018 3:05pm Jul 3, 2018 3:05pm
I think this could be quit nice actually, if it gets proven replies.

Next to have a summarising look at it here, see what it really is and does (I don't mean external services, where they are not needed and a burden, so in the first place not that). And see if it is worth it if more people have the opportunity to focus on it by a general thread about it.

Which gives the opportunity to figure it out better.
  • #265
  • Jul 4, 2018 3:24pm Jul 4, 2018 3:24pm
At the new margin rates, if I am spread betting and risking £1 per point on the EUR/USD (or any major fx pair) with around a 20 - 30 pip stop, how much money would I need to cover the trade?
Nothing in life is to be feared, it is only to be understood.
  • #266
  • Jul 4, 2018 3:34pm Jul 4, 2018 3:34pm
How do ESMA’s new rules affect products?

New minimum margin rates

ESMA's new rules will be applied from 28 July introducing the following leverage restrictions for retail traders:

  1. 30:1 leverage on major currency pairs = 3.33% margin
  2. 20:1 leverage on major indices = 5% margin
  3. 10:1 leverage on commodities (excluding gold) = 10% margin
  4. 5:1 leverage on equities = 20% margin


These restrictions will result in increased margins across all markets, which you can see in the examples.


  1. Major FX
  2. Minor FX
  3. Major indices
  4. Minor indices
  5. Gold
  6. Commodities
  7. Cryptocurrencies
  8. Equities




Current minimum margin rate 0.5%

New minimum margin rate 3.33%

For Currency pairs containing any two of the following currencies: USD, EUR, JPY, GBP, CAD, CHF

Example

If you placed a EUR/USD trade at £5/point, assuming a current market price of 12320, your current margin requirement would be £308. Under the new rules your margin requirement will be £2051.28.

  • #267
  • Jul 4, 2018 3:39pm Jul 4, 2018 3:39pm
Quoting matthew89
At the new margin rates, if I am spread betting and risking £1 per point on the EUR/USD (or any major fx pair) with around a 20 - 30 pip stop, how much money would I need to cover the trade?
That's the frustrating thing! The fact that your stop of 20-30 pips means you are risking only £20-£30 has no bearing on the margin required. You would in fact need over £400!
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  • #268
  • Jul 4, 2018 4:52pm Jul 4, 2018 4:52pm
And it is not just the leverage and ?margin?, hadn't heard that one before.

There are other things as well. Our services are being drawn back. There is money to be made in trading. So what is desired is that this is possible, openly, freely and without any secretiveness. This is perfectly possible. Or why not? Not because of this leverage/margin thing. Or any reasons for it. Having a look at this now and organising and looking to shape how things work will deliver enough for now. Or not too much as is preferred either.

Or apparently other people will. This is what has happened probably.

So having a look at this first and see if general threads about this are possible would be a good beginning.
  • #269
  • Jul 4, 2018 5:02pm Jul 4, 2018 5:02pm
It is totally dumb not to anyway. And it is very possible. Looking at the atmosphere, say here for an example. Clearly the trading is being amended. This is an absolute reason.
  • #270
  • Jul 8, 2018 7:17pm Jul 8, 2018 7:17pm
Quoting Jdf
And it is not just the leverage and ?margin?, hadn't heard that one before.
leverage affect margin, less leverage will require more margin, opening positions will get expensive, especially for non forex-indexes,commodities,crypto trading.
  • #271
  • Jul 9, 2018 6:47am Jul 9, 2018 6:47am
This from my broker last week.

"To confirm, on the 1st of August, there will be changes made to your account due to the decision from ESMA (European Securities and Markets Authority) to implement new measures on Spread Betting and CFD trading accounts for retail clients. As of the 1st of August, there will be new margin requirements that you will have to be aware of, for example, on major indices (UK100, Wall Street) the leverage moves from 500:1 to 20:1 and major forex (GBPUSD, EURUSD etc.) will move from 500:1 to 30:1.

What this means is that you will need additional funds in your account to be able to place trades. For example a £1 per point trade on UK100 at 7500, margin requirement will be £15, with the new requirements, this margin required to place the same £1 per point trade will increase to £375."
All charts/ideas based on UK time zone
  • #272
  • Jul 9, 2018 6:51am Jul 9, 2018 6:51am
Quoting sponge
This from my broker last week. "To confirm, on the 1st of August, there will be changes made to your account due to the decision from ESMA (European Securities and Markets Authority) to implement new measures on Spread Betting and CFD trading accounts for retail clients. As of the 1st of August, there will be new margin requirements that you will have to be aware of, for example, on major indices (UK100, Wall Street) the leverage moves from 500:1 to 20:1 and major forex (GBPUSD, EURUSD etc.) will move from 500:1 to 30:1. What this means is that...
Yep, it's happening unfortunately...

Still makes me livid, but no use complaining. I'm moving my account to Oz and making the most of it until similar regulations spread there too...
  • #273
  • Jul 20, 2018 11:13am Jul 20, 2018 11:13am
u thought XM found a way around it, by survey, they could "conclude" that i was a professional trader and for that reason allow me to continue to have higher leverage. now I just found in my inbox, what all of you have already found... is there any way around this, use a different broker?
  • #274
  • Jul 20, 2018 11:31am Jul 20, 2018 11:31am
Quoting Liquidsnake
u thought XM found a way around it, by survey, they could "conclude" that i was a professional trader and for that reason allow me to continue to have higher leverage. now I just found in my inbox, what all of you have already found... is there any way around this, use a different broker?
Yes, e.g. Aussie brokers like IC Markets are accepting EU traders (for now...)
  • #275
  • Edited Jul 24, 2018 4:45pm Jul 20, 2018 1:21pm | Edited Jul 24, 2018 4:45pm
I am using this broker totally proffessional Named Finpro trading use this link and ask in the chat box for V.I.P account that is for clients with more than 25000 dollars deposit but if you say how much you will deposit they give you the 2 dollar pr.lot traded its 4 dollar pr lot with standard account absolutly the cheapest out there i am scalping for 1-3 pips so i need high leverage and very low commision for it too work they open both demo and live account for you in chat and it needs too be the true ECN account its 5 dollar cheaper that IC markets pr.trade that is a lot of money when you do 50-60 trades a day this is the link you need too use to get V.I.P account:
{ information deleted by staff, per membership policy }
You win some you loose some do both with peace of mind
  • #276
  • Jul 20, 2018 2:07pm Jul 20, 2018 2:07pm
Quoting magne999
I am using this broker totally proffessional Named Finpro trading use this link and ask in the chat box for V.I.P account that is for clients with more than 25000 dollars deposit but if you say how much you will deposit they give you the 2 dollar pr.lot traded its 4 dollar pr lot with standard account absolutly the cheapest out there i am scalping for 1-3 pips so i need high leverage and very low commision for it too work they open both demo and live account for you in chat and it needs too be the true ECN account its 5 dollar cheaper that IC markets...
Could you please post the spread you'll have tonight after the market close? ... focus on *nzd (eurnzd, gbpnzd) or usdchf? pairs that usually have higher spread ... on good brokers the spread don't increase much.
Then compare with icm or darwinex or ...
  • #277
  • Jul 20, 2018 2:50pm Jul 20, 2018 2:50pm
Open a demo with them if you are curius they have the commision on demo too to be realistic..I have used I.C,X.M,B.D swiss and demoed a coupple of others and on the last candle at the close and the mt4 stops they all have a spread too the roof it doesnt matter if its a good broker ore not how much spread are after close its importent what it is when trading and there are good indis too see spread...Finpro have 0.1-0.3 on majors so with 2 dollar commision you have a total average at 4 dollar pr.lot....Thats what importent....Even IC markets with a spread at 0-0.1 goes up..
You win some you loose some do both with peace of mind
  • #278
  • Jul 20, 2018 5:23pm Jul 20, 2018 5:23pm
It would have been easier to get this info from you since you mentioned them and already have an account in there. Spread is just a tiny detail for a trader that put this money on trading, and also is supposed to have good volume numbers to really worth changing someone already knows ...

There is lot more to talk around, I won't open the Pandora's box.
  • #279
  • Jul 21, 2018 3:25am Jul 21, 2018 3:25am
It's up til you if you want too trade 30:1leverage and pay much more than nessesery with spreads i save around 150 dollars a day using finpro over IC markets that i used before...They have only been greate too me with good customer service and all but for that. amount i will accept å lot....And the only way til stay. away from ESMA's bullshit is too stay unregulated...ESMA will sooner ore later push companies from other countries too use the 30:1 maximum on E.U clients and that doesnt work for me...
You win some you loose some do both with peace of mind
  • #280
  • Jul 21, 2018 7:32am Jul 21, 2018 7:32am
And there is no way they will mess with withdraels there office is in London its not a offshore bullshit broker so if they mess with your money they get charged with fraud so thats not happening i read å tread on babypips abaut them and everyone there was very happy with them also...but dont care what you do as long as i am happy....
You win some you loose some do both with peace of mind
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