Non ESMA broker with Micro Lots | Forex Factory

Options

Go to
Permalinks
Print Thread

Similar Threads

How to make lots of money using micro lots 16 replies

Broker with 0.1 Micro-Lots 9 replies

Anyone know any good broker that allows micro lots? 16 replies

Need MT4 Broker that does MICRO Lots 13 replies

Micro mini lots MT4 Broker 2 replies

Non ESMA broker with Micro Lots

  • #1
  • First Post: Jul 11, 2018 2:24pm Jul 11, 2018 2:24pm
Hi Guys/Girls

I currently trading Nas100 on FXCM. Every point the index move I either gain or lose 0.1 USD.
With ESMA looming I am looking for another broker, however, I can't seem to find one where a point move in the index represents 0.1 USD. As far as I can see Dukascopy and Pepperstone only have accounts where a 1 index point move represents 1USD.

My current trading system won't work if the exposure is 10x bigger.

Please let me know if you know of such brokers.

Thanks.
  • #2
  • Jul 12, 2018 1:37am Jul 12, 2018 1:37am
Quoting Krypt0n1te
Hi Guys/Girls I currently trading Nas100 on FXCM. Every point the index move I either gain or lose 0.1 USD. With ESMA looming I am looking for another broker, however, I can't seem to find one where a point move in the index represents 0.1 USD. As far as I can see Dukascopy and Pepperstone only have accounts where a 1 index point move represents 1USD. My current trading system won't work if the exposure is 10x bigger. Please let me know if you know of such brokers. Thanks.
Hi Krypt0n1te

IC Markets offers Micro Lots in Forex, but not sure about Indices.

Let us know how you get on, this ESMA nonsense is certainly testing our ability to adapt!

All the best

TS
  • #3
  • Jul 12, 2018 5:43am Jul 12, 2018 5:43am
Quoting tradesimply
{quote} Hi Krypt0n1te IC Markets offers Micro Lots in Forex, but not sure about Indices. Let us know how you get on, this ESMA nonsense is certainly testing our ability to adapt! All the best TS
Hey tradesimply,

I've been trading NAS100 with XM for a couple of months now and index point moves are as you say 0.10 USD. I know they offer Micro Accounts, but I'm not sure if they offer Micro Lots on Indices, as I'm currently trading with a Standard Account. You should definitely check them out though.

In order to get around the ESMA crap, I've opened another Account with their Australian Regulated company at https://www.xm.com/au/ and all seems to be working great since the beginning of July.

Good luck!
  • #4
  • Jul 12, 2018 8:05am Jul 12, 2018 8:05am
@ tradesimply and NoEsma

Many thanks for the valuable input guys.

I really appreciate it.

Thanks again!
  • #5
  • Jul 12, 2018 8:47am Jul 12, 2018 8:47am
Quoting NoEsma
{quote}In order to get around the ESMA crap, I've opened another Account with their Australian Regulated company at https://www.xm.com/au/ and all seems to be working great since the beginning of July. Good luck!
I just asked them and they told me I will be subjected to the ESMA rules since I trade from the UK. Another ASIC regulated broker told me the same thing. It looks like there's no way around it if you trade from a European country.

Any other opinions on the matter are welcomed.
  • #6
  • Edited 9:14am Jul 12, 2018 9:03am | Edited 9:14am
Yes if you're a European trader, as far as I'm aware you cannot switch to different countries platform to get round the regulations - but I might be wrong IC markets are stating the ESMA rules won't apply. These measures are bought about simply because retail traders are losing so much money.

The regulations are temporary for 3 months, I assume there'll be a review then.

Make sure you understand what this change means - ie: for an account in USD this shows the change after the 1st August:

At 30/07/2018 open 1 lot USDJPY with required margin 100,000/500 = 200 USD.
At 01/08/2018 open 1 lot USDJPY with required margin 100,000/30 = 3,333.33 USD
  • #7
  • Jul 12, 2018 9:16am Jul 12, 2018 9:16am
Quoting alphac
Yes if you're a European trader, as far as I'm aware you cannot switch to different countries platform to get round the regulations. These measures are bought about simply because retail traders are losing so much money. The regulations are temporary for 3 months, I assume there'll be a review then. Make sure you understand what this change means - ie: for an account in USD this shows the change after the 1st August: At 30/07/2018 open 1 lot USDJPY with required margin 100,000/500 = 200 USD. At 01/08/2018 open 1 lot USDJPY with required margin 100,000/30...
OK, but now I have another burning question... Will it work another way around as well.

I am a South African trader using FXCM UK. Will ESMA apply to me as well?

As far as I understand because FXCM UK is governed by ESMA all their clients have to abide by the new rules. I hope I am wrong and that non-European clients with a European broker won't be affected.
  • #8
  • Jul 12, 2018 9:20am Jul 12, 2018 9:20am
The regulations apply to the brokers not the clients. Pepperstone for example won't migrate your account from Pepperstone UK to their Austrailian office, I assume some will be now looking to open accounts offshore outside of the EU, you have to know what sort of protection you'll get.
  • #9
  • Jul 12, 2018 9:37am Jul 12, 2018 9:37am
In other words...

1. If you are a European trader you are screwed since ESMA regulation will apply to you irrelevant whether you use an ESMA regulated broker or not.
2. If you use an ESMA regulated broker you are screwed whether you are a European citizen or not.

This is how I currently understand it.

I hope I am wrong. Luckily I am not a European and luckily I can open an account in Aus, just need to find one that offers micro on indices otherwise I'll have to increase my capital 10fold.
  • #10
  • Jul 12, 2018 10:13am Jul 12, 2018 10:13am
You'll be fine opening an account with a non-ESMA regulated broker Krypt0n1te, especially as you are trading from outside the EU.

The way I understand it is that if a broker has offices in the EU and elsewhere, if you live in the EU you cannot simply open an account in one of their non-EU offices and get around ESMA.

However, if you open an account with a broker that is not subject to ESMA regs (like IC Markets) then you are fine, even if you live in EU. I am in UK and have opened an account with IC Markets (ASIC-regulated with no office in EU) no probs. Whether or not ESMA will tighten the screw with EU traders like me come next month, I cannot say.

But, as a South Africa-based trader using a ASIC-regulated broker, you have nothing to worry about with ESMA, they have no jurisdiction in your case.

All the best :-)
  • #11
  • Jul 12, 2018 10:14am Jul 12, 2018 10:14am
Quoting alphac
Yes if you're a European trader, as far as I'm aware you cannot switch to different countries platform to get round the regulations - but I might be wrong IC markets are stating the ESMA rules won't apply. These measures are bought about simply because retail traders are losing so much money. The regulations are temporary for 3 months, I assume there'll be a review then. Make sure you understand what this change means - ie: for an account in USD this shows the change after the 1st August: At 30/07/2018 open 1 lot USDJPY with required margin 100,000/500...
Thanks for the info. Yes, I do understand perfectly what this change means; traders with a small account won't have much room to trade! I asked ICM about the ESMA rules but they did not give me a Yes or a No answer. Like Krypt0n1te said we are screwed..........

Hello ###. How may I help you?
###I trade from the UK. If I open an account with ICM would I be subjected to the ESMA rules?
Livy. No changes have been made as of yet, however we will be sure to keep clients updated.
Livy. Should we have any additional information you will be contacted via email.
  • #12
  • Jul 12, 2018 10:25am Jul 12, 2018 10:25am
Quoting tradesimply
You'll be fine opening an account with a non-ESMA regulated broker Krypt0n1te, especially as you are trading from outside the EU. The way I understand it is that if a broker has offices in the EU and elsewhere, if you live in the EU you cannot simply open an account in one of their non-EU offices and get around ESMA. However, if you open an account with a broker that is not subject to ESMA regs (like IC Markets) then you are fine, even if you live in EU. I am in UK and have opened an account with IC Markets (ASIC-regulated with no office in EU)...
Many thanks for this post, I will probably move my funds over to either PS or ICM, I'll wait for a little and see what happens. I can only imagine that MANY ESMA regulated brokerage firms aren't very happy at this stage of the race.
  • #13
  • Jul 13, 2018 5:18am Jul 13, 2018 5:18am
Quoting Krypt0n1te
In other words... 1. If you are a European trader you are screwed since ESMA regulation will apply to you irrelevant whether you use an ESMA regulated broker or not. 2. If you use an ESMA regulated broker you are screwed whether you are a European citizen or not. This is how I currently understand it. I hope I am wrong. Luckily I am not a European and luckily I can open an account in Aus, just need to find one that offers micro on indices otherwise I'll have to increase my capital 10fold.

Hey Krypt0n1te,

Not really. I've spoken with Account Managers with two of the Brokers I trade with, and both of them basically came back with the same response. An Australian regulated broker (ASIC), is a completely different entity than an EU regulated broker which falls under ESMA.

Therefore, even if a group has multiple licenses/regulations, they are all run from separate entities and so what applies to one entity does not apply to the other. If you think about it, this is probably one of the reasons why some brokers have so many regulations, it's to be able to allow clients to take advantage of more acceptable trading conditions, when shit like ESMA regulations appear, where people have to trade with a noose around their neck.

In reply to @Black Bird, as I've said before I've been trading with XM Australia since the beginning of July after ESMA, and I live in Prague which is in the EU. The way I opened an Account was I just went to their website (xm.com/au), then clicked on the popup 'Continue Anyway', followed the standard procedure and everything was fine from thereon. I'm not sure who you spoke to who gave you that information, but since several people have mentioned they had no problems opening an Account with them, I'm pretty sure its worth trying to register with them.

Good luck anyhow!
  • #14
  • Jul 13, 2018 6:02am Jul 13, 2018 6:02am
@NoEsma

You can open account with XM (Au), but if u are european citizen they will offer u 1:100 max leverage, and after 01.08 they will decrease it to esma rules for sure.
  • #15
  • Jul 13, 2018 8:20am Jul 13, 2018 8:20am
Quoting Spekulant.FM
@NoEsma You can open account with XM (Au), but if u are european citizen they will offer u 1:100 max leverage, and after 01.08 they will decrease it to esma rules for sure.
This is what I'm worried about. EU traders have had no problem opening accounts and trading with non-EU brokers so far, but will they change the leverage offered to EU traders after 1 August?

Mmm, guess will just have to wait and see, will be gutting if so...
  • #16
  • Jul 13, 2018 8:22am Jul 13, 2018 8:22am
@ tradesimply Some of them will change, some not. It deppend on broker. Australian, Switzerland, Belizee, etc. there are some possibilities. or u can become prof. client.
  • #17
  • Jul 13, 2018 8:51am Jul 13, 2018 8:51am
Quoting NoEsma
{quote}@Black Bird,....I'm not sure who you spoke to who gave you that information,...
An XM representative on Live Chat told me that; they can only offer me the ESMA reduced leverage as I trade from the UK. As you know the changes come into effect on 01 August 2018. Did they actually tell you they are not going to reduce your leverage limit? If they haven't said anything better not to ask them so you don't alert them IMHO.......

Below are some disadvantages about moving to an ASIC regulated broker which, traders may like to know:

https://www.goodbrokerguide.co.uk/fe...-forex-broker/
  • #18
  • Jul 13, 2018 12:57pm Jul 13, 2018 12:57pm
Quoting Spekulant.FM
@NoEsma You can open account with XM (Au), but if u are european citizen they will offer u 1:100 max leverage, and after 01.08 they will decrease it to esma rules for sure.

Hi Spekulant.FM,

I'm not sure who told you this, but I am a European citizen as mentioned before, and I'm trading with XM Australia with a 1:500 max leverage. They will not decrease leverage or apply ESMA nonsense because XM Australia does not have to follow ESMA rules as they are regulated by ASIC, and ESMA only applies to European regulated entities! (ESMA = European Securities and Markets Authority)

I've discussed this with XM Australias' support who have assured me that ESMA cannot affect their Australian branch. And to be honest, it makes sense, because as I posted above, XM UK or any of their EU branches, has nothing to do with XM Australia. They are separate entities, with different licenses, in different geographical regions, and therefore have to follow different regulatory guidelines.

@Black Bird, I'm guessing you received that answer because you were receiving support from XM UK, instead of XM Australia.

P.S. SCREW ESMA
  • #19
  • Jul 13, 2018 1:12pm Jul 13, 2018 1:12pm
Quoting NoEsma
{quote} Hi Spekulant.FM, I'm not sure who told you this, but I am a European citizen as mentioned before, and I'm trading with XM Australia with a 1:500 max leverage. They will not decrease leverage or apply ESMA nonsense because XM Australia does not have to follow ESMA rules as they are regulated by ASIC, and ESMA only applies to European regulated entities! (ESMA = European Securities and Markets Authority) I've discussed this with XM Australias' support who have assured me that ESMA cannot affect their Australian branch. And to be honest, it...
That is very encouraging @NoEsma, thanks for sharing :-)
  • #20
  • Jul 16, 2018 8:23am Jul 16, 2018 8:23am
Quoting NoEsma
{quote}@Black Bird, I'm guessing you received that answer because you were receiving support from XM UK, instead of XM Australia. P.S. SCREW ESMA
I stand corrected. I asked again, the AU XM this time, and ICM, this time there was another rep, and they told me Euro citizens can open an account with their AU broker and the ESMA rules will NOT apply to them.

Thanks NoEsma
0 traders viewing now