Im from the UK not from Australia, but I have an account with an Aussie broker to get around the ESMA regulations brought into Europe. It was only so I could get solid margin rates as a retail trader. Please dont tell me the margin rates could change in Australia, does anyone know if the new regulations in Australia will effect the margin rates?
Nothing in life is to be feared, it is only to be understood.
From what I can see the ESMA is just advising other countries about their regulations. That PDF was from 2013, and I hope Australia does not implement any restrictions on Margin rates. If anyone has any more info please post.
Nothing in life is to be feared, it is only to be understood.
I scanned through the article cannonscout linked, it's from 2013. I think essentially saying Europe will respect Australian rules and vice versa, I didn't see anything regarding margin changes for Aus. I'd be in a pickle too. For those who learn to manage 500:1 leverage it's bloody brilliant. There are of course times during my learning that 30:1 leverage would've saved me heartache, but that's part of the trial by fire of forex. Every trader has the responsibility to know how much they are risking on every trade, and to be comfortable with it.
ESMA and FCA reduced their leverage to a minimum but I think leverage is neither good nor bad. It just amplifies the good and bad effects of the income generation and productivity of our trades. As long as you are aware of the potential impact of leverage and the volatility inherent in trading, everyone is free to choose how high their leverage goes.
Perhaps it will save newbies from the risk that comes with high leverage but it should not be forced upon all traders though. Hope Aussie will remain with 500
