ESMA, thanks for moving margin call closer!

Hi,

I'm from EU, and got this nice e-mail today:

"European regulator (ESMA) announced Forex, Cryptos and CFD products’ measures which come into effect on 1 August 2018.
In anticipation of ESMA's regulations, changes to your trading conditions will take effect at AAAFx on 29 July 2018 at Market Opening.
The new regulations will govern the leverage profiles applied to Retail Clients of AAAFx in order to protect Investors and to ensure both responsible position sizing and risk management.
Please ensure to carefully consult the breakdown below so that you are fully prepared for the upcoming changes.
What are the ESMA Measures referring to?
Leverage Restrictions: Leverages will be reduced and adjusted to reflect the volatility of the underlying asset, as of 29 July 2018.
More specifically:
30:1 Major Currency Pairs
For retail FX positions on the following (major) currency pairs: EUR/USD, USD/JPY, GBP/USD, USD/CHF, CHF/JPY, GBP/JPY, USD/CAD, EUR/CAD, EUR/CHF, EUR/GBP, CAD/CHF, EUR/JPY, GBP/CAD, CAD/JPY, GBP/CHF
20:1 Non-major Currency Pairs, Gold and major Indice
•FX positions on all other currency pairs
•CFD: XAU/USD, UK100, FRA40, GER30, SPX500, US30, NAS100, AUS200, EUSTX50
10:1 Commodities other than Gold and non-major equity Indices
USOIL, UKOIL, NGAS, XAG/USD, Copper, CHN50, and ESP35
5:1 Bund
2:1 Cryptocurrencies CFDs
Will this impact my currently open positions?
The abovementioned restrictions will apply to all positions of the AAAFx Retail Clients, existing and new, as of 29 July 2018.
We strongly advise you to manage your currently open positions and ensure that you have enough equity in your account to cover the new margin requirements in order to avoid margin calls and positions being liquidated.
To safeguard your account, we recommend that you take action as soon as possible."

And here is the best part:

"Fund your account"

So, thanks ESMA, margin requirements will increase by x3 or x4 for my open positions, free margin will be less, so I'm closer to a margin call now than ever before. Good job, you protected retail traders! In one or another way they will put more money in brokers pocket. Either because a margin call or by depositing more to avoid margin call! Well done!

And they give you a lot of time...like 10 working days to adjust to new rules...
Meanwhile Brexit needs 2 years or more...
I know there is a different thing but such a change requires more time...if you want to change your broker.

The whole thing is so frustrating! IG have send an email saying that open positions will not be affected but that any position opened from 2nd August will have new leverage applied.

Either way, the whole thing is pants!

All positions will be affected even the opened ones.

I sure hope that after 2 months they won't renew these stupid rules and we will be back to normal. This does not protect traders at all.. beginners will just deposit more money and possibly lose it all.

Yes, This is very bad for retail trader. They are trying to kill us.

Politics do what they best know do, frustraiting people with stupid regulations and taxes.
If they want to protect people, let them loose 1.000 instead of 15.000
Lowering stop out, they help us to loose less but surely.

Maybe forcing all orders to reach real market could help us. Now our actions are not reflected in the price, we are just "betting".

I hope UK does not follow "funny" EU.

So, UK will have more trader to trade and more famous in financial trading world.

Just my hope

ESMA leverage etc. restrictions kicking in in the UK also at end of month.
Should make life interesting.

No. Accounts with open positions went into "Close only" mode.

I don't see where a lower leverage means you can lose more money. It is actually the opposite.

Many of the brokers are allowing people to apply for professional accounts without requiring any proof you meet their requirements. Not something I'd endorse, of course.

I dont know what brokers you are talking about, but my broker pepperstone has some strict conditions for professional accounts, portfolio exceeding 500,000 euro and having worked in the financial sector as a profesional..

Yep, I think it's standard that they ask that.

Guys does this new regulation apply as a rule to brokers only? Say eu-citizen living in EU wants to trade elsewhere?! Or he has to trade strictly under ESMA companies?

If you trade with a company outside EU then ESMA does not apply. For example IC Markets in Australia.
Esma is also very cross - but powerless-with companies like IG in the UK who suggest ( not advise) that people can trade with their branches outside the EU -Switzerland for example.

You're right , Turnip . Also Dukascopy Swiss ( not Dukascopy Europe ) does not apply the ESMA rules.