EU is lowering leverage. What now?

Do you guys think that the majority of retail traders will make a transition to non-EU regulated Brokerages?

Yes, that's what I reckon. It would be interesting to see the stats!

I think many people will move their account to a Seychelle based broker

Somehow, I don’t feel safe with overseas brokers, so for now I am staying with my EU one.

Maybe the regulator and industry has under estimated how much independent traders liked higher leverage. Evident by how many traders are now looking into using offshore brokers in Australia New Zealand and other places who still offer higher leverage.
Less than 100:1 is very low.

Fair enough, the important thing it to do what's right for you.

All the best in your trading

The FCA recently warned brokers not to try and go around the new rules by using products similar to CFDs.

There have been no such warnings elsewhere in Europe, I wonder if brokers will attempt to do that.

These products "similar" to CFDs are practically something completely different and wont be suitable for most us here. It is not intended to be tradeable via MT4/5 ctrader for example.

I still see many EU brokers offering high leverage, are there any exceptions?

All that I know have already lowered their leverage.

Here is accounts comparison of an EU broker and maximum leverage is 1:400,
http://bit.ly/2MeXgzM

But FxPro, another EU broker did lower leverage.
https://www.fxpro.co.uk/trading/platforms/comparison

I know a few brokers that are offering account in the Seychelles to combat this

Its all a scheme to snoop and know your financial and tax status, they will ask to provide evidence of having more than half a million euros in assets, or you must work in a financial trading workplace where they will snoop on everything you do there. basically a disgrace with little or no privacy left.

The Seychelles?

Wow, there's offshore and then there's... really offshore! 🏝

I'm much more comfortable with the Aussie-variety of offshore...

Most caribbean offshore brokers do not offer sufficient funds protection and insurance coverage options.
Going with Australian or New Zealand fx broker is a better choice imho.

Agree! They are at least regulated by the likes of ASIC

According to ESMA, the lowering of the leverage is for three months only starting from August. And they will be reviewing the changes and if it actually "is protecting the retail clients". I so badly wish that the leverage goes back to normal for EU traders/brokers.

What most people don’t understand is if they get ripped off / scammed or even if a legitimate broker goes belly up / bankrupt or shut down by their regulator, one needs to go to the jurisdiction (fly to Australia for example) in order claim your damages if you manage to collect. Unless you have deposited more than $20,000 it is not worth the expense, resources and time. Unless you hire a lawyer to act on your behalf, which will cost you the same amount-if not more...

You are the one who don't understand. You don't need to go Australia. Most of Australian/New Zealand services now do not require physical appearance. You just need to submit documentary evidence.
I even apply for a new passport (the very first passport for me ) from home without meeting anyone, the passport get couriered to my home. So any government services now is done online or by phone.

Having said that, the penalty in Australia usually involve jail time. e.g. A singapore court fined a director for insider trading S$300K. Same offence in australia has minimum jail time. Broker now need to submit reconciliation between trading and trust account on a weekly basis to ASIC. There are 2 types of fraud in my opinion. Those that planned to defraud right from the start like Madoff and those who are legit companies but someone decide one fine morning, to withdraw the money from trust fund. There are too much/costly paperwork for Forex broker in Australia to do the madoff fraud(but for low cost offshore jurisdiction, this may be worthwhile). The second fraud requires money to be transferred out of the trust fund to another overseas bank account. Transferring an amount over XXX to on offshore account from any bank get red-flagged. If you transfer amount smaller amount gradually, the weekly reconciliation will detect this anomaly.

There are so much mis information on the internet.

Dear reddevil,
I am not familiar with New Zealand passport procedures (I assume that’s where you are from) but I certainly hope it’s not that easy to obtain a government passport. I do not know of any country that MAILS their passports to its citizens.
In any event, because I happen to be an International lawyer, I am well aquatinted with the legal system and its antiquated court procedures.
Like I mentioned, either you would have to appear in person or send a lawyer to represent you to claim damages and/ or compensation for breach of contract / fraud etc.
A financial victim cannot just EMAIL a complaint online and expect a direct deposit refund without DUE PROCESS in a court of law.
And the jurisdiction for relief is the country in which the broker operates.