Russia plans to cap the maximum FX leverage at 1:30 | Forex Factory

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Russia plans to cap the maximum FX leverage at 1:30

  • #1
  • First Post: Oct 8, 2018 9:24am Oct 8, 2018 9:24am
Regulators in Russia are planning to reduce the maximum leverage allowed for Forex transactions to 1:30 (https://theforexreview.com/2018/10/03/regulators-in-russia-plan-to-cap-the-maximum-fx-leverage-at-130/), according to an interview with a deputy director of the Russian central bank.

The move will follow a similar step taken by the European Securities and Markets Authority (ESMA) in August, which also capped the maximum leverage for Forex brokers at 1:30.

Currently, Forex brokers in Russia can still offer leverage of up to 1:50 – the same as the leverage allowed in the USA.

Olga Shishlyannikova, a deputy director of the securities and commodity markets department at the Bank of Russia, says the move is about to be taken because of the numerous complaints by traders who have suffered serious loses.
  • #2
  • Oct 8, 2018 11:28am Oct 8, 2018 11:28am
Quoting mlawson71
Olga Shishlyannikova, a deputy director of the securities and commodity markets department at the Bank of Russia, says the move is about to be taken because of the numerous complaints by traders who have suffered serious loses.
THIS is what makes me so cross about the current reduction of leverage movement. If this really is the reason, then it is a case of the numpties who cannot (or will not) properly manage their risk spoiling it for the rest of us.
  • #3
  • Oct 8, 2018 11:56am Oct 8, 2018 11:56am
My first broker had disguised itself as an European broker with offices all over major EU capitals. Then one day they put out a request asking traders to please stop withdrawing money from their accounts. They said everything will be fine in a few days. As a loyal and inexperienced trader I decided to stick with them. A few days later they announced that their government (Russian) had imposed a bunch of new rules that they couldn't meet immediately and the government had seized all their assets including the clients funds and shut them down. They suggested if the traders wanted to recuperate their funds, they should go after the government. So good luck going after the Russian government.
  • #4
  • Oct 8, 2018 12:20pm Oct 8, 2018 12:20pm
Quoting OutThere
My first broker had disguised itself as an European broker with offices all over major EU capitals. Then one day they put out a request asking traders to please stop withdrawing money from their accounts. They said everything will be fine in a few days. As a loyal and inexperienced trader I decided to stick with them. A few days later they announced that their government (Russian) had imposed a bunch of new rules that they couldn't meet immediately and the government had seized all their assets including the clients funds and shut them down. They...
when did this happen? name of the broker?
  • #5
  • Oct 8, 2018 12:23pm Oct 8, 2018 12:23pm
Quoting OutThere
My first broker had disguised itself as an European broker with offices all over major EU capitals. Then one day they put out a request asking traders to please stop withdrawing money from their accounts. They said everything will be fine in a few days. As a loyal and inexperienced trader I decided to stick with them. A few days later they announced that their government (Russian) had imposed a bunch of new rules that they couldn't meet immediately and the government had seized all their assets including the clients funds and shut them down. They...
lol. which broker was that?
  • #6
  • Oct 8, 2018 12:30pm Oct 8, 2018 12:30pm
FXFirst.
There is absolutely no signs of them on internet that I can find now. Circa 2003/4. I'm sure it is before they brought in a couple of regulatory agencies that they have now but the memory is long and bitter. Maybe things have improved. Maybe not.
  • #7
  • Oct 8, 2018 12:48pm Oct 8, 2018 12:48pm
I am from Russia. And I can say that 95% of Russian traders trade with brokers who have an offshore (Beliz, Cyprus, Virgin, Maldives ...)residence or a reliable foreign residence (Australia, ...). The bill will not hit Russian traders.
Stay hungry to be free...
  • #8
  • Last Post: Edited Oct 9, 2018 2:18am Oct 8, 2018 1:30pm | Edited Oct 9, 2018 2:18am
My post was a bit of a rant so I deleted it
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