EU is lowering leverage. What now?

Hopefully!
1: actually it’s in their best interest to have higher leverage
2: hard to say, no one knows.

Thanks for your answer symona, makes sense.

Then again my whole question might be redundant as Brexit might not even happen after this evening's vote!

I have been concidering to register on a broker through a vpn because this leverage makes me sick, I am not sure if this is illegal or not (think so but how will they know though). If i pay my taxes over it i don't see anything wrong.

Low leverage isn't that bad actually. We got used to high leverage because of the advertisement of brokers 1/400, 1/500 etc..

İ've been in the market since 2001 and i confess that %30-%70 winners and loosers ratio on forex. Between %30 percent of succesfull traders %80 percent

use low leverages and wait averagely 2 weeks. Don't forget patients always gets impatients money.

For professinal traders they can use 1/100 leverage on eu.İf you ar not proffesional isuggest use 1/10 and 1/30 at least you won't loose your money.

1/100 is little low for professional but everything has a price so we have to trade under new rules.

Do not deposit non regulated brokers use only Fca,mifid2 regulated european brokers cause the consequences might be worse than leverage.

This is inaccurate. UK's FCA has made it clear that its regulations will be in line with the majority of ESMA restrictions:
https://www.leaprate.com/financial-s...sma-proposals/

They were already considering making such changes to retail CFD long before ESMA took action.

Once Brexit is finalized, we don't know exactly what leverage it will go to. I think UK never needed to take its own action because ESMA already took the action with their 1:30 limits, banning binary options, trading bonuses, guaranteed stop losses, etc. The FCA needs to be ready to act regardless of the brexit finality.

But since UK FCA said they will essentially make, I wouldn't bank on anything higher than 1:50 or 1:100 with extreme luck. I personally think UK would be smart to allow higher leverage, and keep some of the other restrictions. Switzerland has their own autonomy.....why cant the UK have theirs and still remain competitive?


You may want to consider a handful of Australian Prime of Prime or offshore brokers. But the % of sharks increase exponentially also. And what's worse is that most retail traders don't know what to look for in a broker. In other words, without being well informed about who you are trading with, there is a very good chance that you have lost your deposit before you've even signed up.

Thanks for all your answers.

Yes, it will be interesting to see what happens, if indeed anything changes at all.

I think that if Brexit does happen, there won't be any changes immediately anyway. Everyone will have enough to deal with without worrying about leverage restrictions for retail traders.

Like I said, technically once the UK leaves the EU, the current restrictions will no longer apply.
The FCA may very well implement restrictions similar to the EU in the future but at the present moment they are just proposals and considerations.

Oh I see.

So literally, the day after the UK leaves, the brokers will lift the restrictions?

I might send an email to IG and see what they say.

Just got this back from them:

"ESMA was agreed upon by the UK regulators so the restrictions would not be lifted".

INTERESTING!

Indeed!

It will be interesting to see if anything changes at all!

I'm now thinking not :-(

But presumably not too high as they want their clients to remain in the game and continue trading successfully?