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EU is lowering leverage. What now?

  • #61
  • Oct 11, 2018 4:18pm Oct 11, 2018 4:18pm
Quoting jag1969
{quote} Gabrields, i don´t trade from Europe but i could suggest you Tradeview Markets. I understand that they are an american broker that didn´t accept NFA regulations, so they do have a register at Cayman Island. It´s an unregulated broker, too. It isn´t listed at that Babypips list because they can´t accept USA traders. I am trading with them since eleven months ago. They seem good broker if you are at your learning process. Good reviews at Forex Peace Army. Initial deposit usd 100. So you can test them with a small deposit. I hope this information...
Thanks jag 1969, that's a good list for me to be getting on with.
So far I have started looking into opening an account with ICMarkets. They seem like a good option.
  • #62
  • Oct 14, 2018 5:24pm Oct 14, 2018 5:24pm
Quoting TeenyTrader
{quote} Thanks jag 1969, that's a good list for me to be getting on with. So far I have started looking into opening an account with ICMarkets. They seem like a good option.
Some Bad reviews on this link relating to IC from Forex Peace Army !
But how many are reviews from real traders and how many reviews are bogus ?

https://www.forexpeacearmy.com/forex...=4&per-page=10
every Saint has a past. Every Sinner has a Future
  • #63
  • Oct 15, 2018 3:55am Oct 15, 2018 3:55am
Quoting turnip15
{quote} Some Bad reviews on this link relating to IC from Forex Peace Army ! But how many are reviews from real traders and how many reviews are bogus ? https://www.forexpeacearmy.com/forex...=4&per-page=10
Exactly!

Unfortunately a lot of traders prefer to blame their broker rather than take a hard look at themselves.

I prefer to open a small account and see for myself.
  • #64
  • Oct 18, 2018 9:30am Oct 18, 2018 9:30am
Here we go again: ESMA has agreed to renew the restriction on the marketing, distribution or sale of CFDs to retail clients, in effect since 1 August, from 1 November 2018 for a further three-month period.
  • #65
  • Oct 19, 2018 3:35pm Oct 19, 2018 3:35pm
Quoting UlliC
Here we go again: ESMA has agreed to renew the restriction on the marketing, distribution or sale of CFDs to retail clients, in effect since 1 August, from 1 November 2018 for a further three-month period.
So, no change until at least 1 February then? I wonder if they will keep renewing every 3 months or just make it permanent at some point.
  • #66
  • Oct 22, 2018 9:42am Oct 22, 2018 9:42am
Quoting UlliC
Here we go again: ESMA has agreed to renew the restriction on the marketing, distribution or sale of CFDs to retail clients, in effect since 1 August, from 1 November 2018 for a further three-month period.
They renewed the ban on binary options trading too, for better or worse. I think those regulations are here to stay.
  • #67
  • Oct 22, 2018 12:39pm Oct 22, 2018 12:39pm
Quoting mlawson71
{quote} They renewed the ban on binary options trading too, for better or worse. I think those regulations are here to stay.
I think you're right mlawson71

In a way I wish they would just say so, instead of renewing them 3 months at a time. It would at least give me the kick I need to change broker.
  • #68
  • Oct 25, 2018 9:51am Oct 25, 2018 9:51am
The restrictions will be renewed from November 1st for a period of three months. ESMA claims that the reason for the decision is that the concerns around investor protection are still present. But when exactly the concerns around investor protection would be any different?! The restrictions include leverage caps, as well as a margin close out rule and negative balance protection. In my opinion each and every Broker could calculate and decide how much leverage ratio could allow to its own clients, accordingly the margin call & the stop out event. Plus, I personally have not heard of any EU Brokers who has not provided a negative balance protection prior ESMA’s rule.
  • #69
  • Nov 1, 2018 4:49pm Nov 1, 2018 4:49pm
Does anyone know of any continuing petitioning by retail traders to change the regulations? I know there was a big survey before the initial implementation but things seem to have quietened down completely since then. Has everyone just accepted the regulations or is there any attempt to put pressure on ESMA to relax the rules?
  • #70
  • Nov 13, 2018 3:44pm Nov 13, 2018 3:44pm
Quoting TeenyTrader
Does anyone know of any continuing petitioning by retail traders to change the regulations? I know there was a big survey before the initial implementation but things seem to have quietened down completely since then. Has everyone just accepted the regulations or is there any attempt to put pressure on ESMA to relax the rules?
It seems so, it's gone very quiet indeed. I guess everyone has just accepted it.
  • #71
  • Nov 15, 2018 9:21am Nov 15, 2018 9:21am
Quoting TeenyTrader
{quote} I think you're right mlawson71 In a way I wish they would just say so, instead of renewing them 3 months at a time. It would at least give me the kick I need to change broker.
ESMA can only introduce temporary three-month measures (as per the MiFIR), they don’t have the authority to set permanent bans. So they set that three-month ban and began renewing it again and again indefinitely.

It was clear from the beginning, I think, that it would be a permanent ban, the renewal every three months was simply a bureaucratic issue.
And you’re right, by now everyone seems to have accepted it.
  • #72
  • Nov 21, 2018 11:02am Nov 21, 2018 11:02am
Dukascopy
LOVE
  • #73
  • Jan 25, 2019 8:58am Jan 25, 2019 8:58am
Does anyone keeps on track, when should be the next date for renewing?
  • #74
  • Feb 21, 2019 9:56am Feb 21, 2019 9:56am
The last time they renewed the measures was on February 1st and as I said, they can do so only every three months. That means that next time should be in April.
  • #75
  • Feb 22, 2019 8:47am Feb 22, 2019 8:47am
I don’t think this has something to do with low leverage and the particular traders from the EU. This is just some kind of game and somebody started it to mess with EU market. If you are not sure in EU brokers maybe it makes sense to have also a few accounts with other than from EU just to be sure.
  • #76
  • Feb 23, 2019 5:09am Feb 23, 2019 5:09am
I think the ESMA restrictions are going to be permanent. Most big brokers have offshore entities that can offer higher leverages. So bottom line is find a big broker and go with their offershore arm to get the higher leverage. Forgot about EU regulation unless the negative balance protection and FSCS/ICF schemes/funds are critical. Simple.
  • #77
  • Feb 23, 2019 5:35am Feb 23, 2019 5:35am
Quoting UlliC
The... t. But when exactly the concerns around investor protection would be any different?! The restrictions include leverage caps, as well as a margin close out rule and negative balance protection. In my opinion each and every... le.
Less leverage , More margin, means you can hit more margin calls ,so they effectively STEAL YOUR MONEY MORE often.



The leverage regulations are all about banks to fill their pockets, Duhhhh. .

See in USA ??? No hedging ....
WTF ???

Protecting you
LOL
Beware of robber banks (RB), bad advisors.
  • #78
  • Mar 11, 2019 3:33pm Mar 11, 2019 3:33pm
Any thoughts on the ESMA regulations with relation to Brexit?

I can't find anything on this.

If Brexit happens on the 29th March, will the UK revert to pre-ESMA regulations.

In other words, will we get to trade with the bigger leverage we had before ESMA?

Thanks in advance. I know it's not definite, but if Brexit happens then surely it will make a difference to us UK-based traders?
  • #79
  • Mar 11, 2019 6:18pm Mar 11, 2019 6:18pm
Technically and logically the restrictions will not apply to UK-based brokers (not UK traders) post BREXIT.
As such, a European trader can use a UK broker provided that the EU or UK doesn’t restrict accepting non-UK traders. UK residents should not be affected.
  • #80
  • Mar 12, 2019 4:04am Mar 12, 2019 4:04am
Quoting symona
Technically and logically the restrictions will not apply to UK-based brokers (not UK traders) post BREXIT. As such, a European trader can use a UK broker provided that the EU or UK doesn’t restrict accepting non-UK traders. UK residents should not be affected.
Thanks symona

So, as a UK-based trader using a UK-based broker, ESMA restrictions will no longer apply to me post-Brexit?

I wonder a couple of things -

1) Will UK-based brokers revert to pre-ESMA regulations or will it be in their interests to maintain the status quo?

2) If they do revert to the old regs, how long will it take?

I suppose I could just wait and see, but it would be great to hear all your thoughts on the matter.

TIA
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