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Australian brokers and leverage restriction

  • #1
  • First Post: Edited 1:45am Aug 24, 2019 1:27am | Edited 1:45am
ASIC proposes 20:1 leverage for all FX pairs and a binary options ban


what do you think ? will you move offshore ?
  • #2
  • Aug 24, 2019 1:51am Aug 24, 2019 1:51am
For a country that loves sports gambling, I'm a little surprised, but I never did like the idea of bucket shop binary options.
Having the choice to free up funds, rather than have to keep them with your broker for margin requirements is more important to some than others.
If I were going to go offshore, maybe Prime Intermarket Group Asia Pacific? But just a matter of time before all reputable brokers world wide will subcum to the death of high leverage. The end is nigh, till all that is left is scam brokers offering high leverage, praying on the poor and desperate.
  • #3
  • Aug 24, 2019 2:04am Aug 24, 2019 2:04am
Quoting HeyYou
ASIC proposes 20:1 leverage for all FX pairs and a binary options ban what do you think ? will you move offshore ?
It is so easy these days so many will......but they will lose the protective regulation of ASIC in doing so.....so it puts the burden of risk more squarely in the hands of the punter I s'pose. Those that don't will be forced into a different mindset....that of finding an edge as opposed to having a flutter. With less leverage available and higher margins required, the burden shifts to a more serious game with an added emphasis on capital protection. Barriers to entry in this game need to step up IMO....full of riff-raff. It's just not cricket ol' sport :-)
  • #4
  • Aug 24, 2019 2:07am Aug 24, 2019 2:07am
It is so ridiculous, especially as the ESMA example proves the NONSENSE of this measure.

I always explained and stated, that leverage has no effect on the percentage of losing clients .. but what do I know ...

https://www.financemagnates.com/fore...ear-into-esma/

And now ASIC is blindly adapting their buddies nonsense like a bunch of fools.
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  • #5
  • Aug 24, 2019 2:14am Aug 24, 2019 2:14am
Quoting Drolph
It is so ridiculous, especially as the ESMA example proves the NONSENSE of this measure. I always explained and stated, that leverage has no effect on the percentage of losing clients .. but what do I know ... https://www.financemagnates.com/fore...ear-into-esma/ And now ASIC is blindly adapting their buddies nonsense like a bunch of fools. {image}
Agreed Drolph....however it certainly reduces market share relating to those small time punters who can't meet the higher barriers. Let the % losers stay the same with higher capital at stake....but reduce the impact on the small retail trader who is less capable of putting in the required stake and surviving the hits. The reduction in small retail trader numbers will impact the smaller broker who might have a tendency to predate on the negative aspects of this game.
  • #6
  • Aug 24, 2019 2:18am Aug 24, 2019 2:18am
Quoting Copernicus
{quote} It is so easy these days so many will......but they will lose the protective regulation of ASIC in doing so.....so it puts the burden of risk more squarely in the hands of the punter I s'pose. Those that don't will be forced into a different mindset....that of finding an edge as opposed to having a flutter. With less leverage available and higher margins required, the burden shifts to a more serious game with an added emphasis on capital protection. Barriers to entry in this game need to step up IMO....full of riff-raff. It's just not cricket...
yes, it worked so well for me that my accounts are in positive since the esma intervention

but do they offer NBP ? EU brokers also offer NBP

BTW I accept all kind of opinions, if you're able to keep sane and "disciplined" with 100 leverage good for you.
  • #7
  • Aug 24, 2019 2:28am Aug 24, 2019 2:28am
Quoting Copernicus
{quote} Agreed Drolph....however it certainly reduces market share relating to those small time punters who can't meet the higher barriers. Let the % losers stay the same with higher capital at stake....but reduce the impact on the small retail trader who is less capable of putting in the required stake and surviving the hits. The reduction in small retail trader numbers will impact the smaller broker who might have a tendency to predate on the negative aspects of this game.

But it also reduces the capabilities of traders like me, that demonstrably are able to make money with high leverage strategies for more than 2-3 years!
Since the initial argument of "reducing the amount of losing clients" is proven wrong your argumentation is not worth my sacrifice in my humble opinion.
  • #8
  • Aug 24, 2019 2:32am Aug 24, 2019 2:32am
Quoting Drolph
{quote} But it also reduces the capabilities of traders like me, that demonstrably are able to make money with high leverage strategies for more than 2-3 years! Since the initial argument of "reducing the amount of losing clients" is proven wrong your argumentation is not worth my sacrifice in my humble opinion.
Fair enough :-).....but it's not that your days are over when options such as offshore are as easy as hitting the online button with some worthy offshore brokers. Most are probably not like you....particularly those guys who place a minimal balance in their account to simply meet current margin when they are fully aware that if the ***** hits the fan, they won't respond to the margin call and rely on the brokers good grace to coff up from their balance sheet.

The impacts of all this are probably greater for the industry in Oz than the trader anyway. A few bucket shops that fly under ASIC's radar will hit the dirt....plus it reduces the oversight requirement....cause we know ASIC needs help given the lack of enforcement teeth they have at the moment....."sayeth the banker" :-)
  • #9
  • Aug 24, 2019 2:35am Aug 24, 2019 2:35am
Quoting Drolph
{quote} But it also reduces the capabilities of traders like me, that demonstrably are able to make money with high leverage strategies for more than 2-3 years! Since the initial argument of "reducing the amount of losing clients" is proven wrong your argumentation is not worth my sacrifice in my humble opinion.
I assume you have the capital to trade the same size, but it is advantageous for you to have it freed up for other purposes.
I"m the same way.
  • #10
  • Aug 24, 2019 2:40am Aug 24, 2019 2:40am
Quoting HeyYou
ASIC proposes 20:1 leverage for all FX pairs and a binary options ban what do you think ? will you move offshore ?
and where you heard that??i use Ic markets and they say dont know nothing about that..
  • #11
  • Aug 24, 2019 2:49am Aug 24, 2019 2:49am
Quoting pridolfx
{quote} and where you heard that??i use Ic markets and they say dont know nothing about that..
There is a 3 week deadline for consideration by ASIC regulated brokers underway.

https://www.abc.net.au/news/2019-08-...ustry/11437550
  • #12
  • Aug 24, 2019 3:16am Aug 24, 2019 3:16am
Quoting pridolfx
{quote} and where you heard that??i use Ic markets and they say dont know nothing about that..
Sry, I removed the link to a popular website, cause according to their tos they don't want to be linked.



just do a google search.
  • #13
  • Aug 24, 2019 4:30am Aug 24, 2019 4:30am
Quoting Copernicus
{quote} There is a 3 week deadline for consideration by ASIC regulated brokers underway. https://www.abc.net.au/news/2019-08-...ustry/11437550
this is just proposoal,i doubt they accept,because will loss a loot clients like esma bullshit made in europe,i dont need leverage 1:20, 1:20 is only for millionaires with enaught equity.
which good reputation brokers also exist which is not esma and asic regulated,anybody knows??
  • #14
  • Aug 24, 2019 4:30am Aug 24, 2019 4:30am
Wow, what a punch in the guts. I knew leverage was going to be attacked at some point, but I thought they would have aimed to lower it to 100:1.

20:1 is absolutely pathetic for a market that barely moves 1% in its entire day. Scalping will become a lot less lucrative.
  • #15
  • Aug 24, 2019 4:38am Aug 24, 2019 4:38am
Quoting pridolfx
{quote} this is just proposoal,i doubt they accept,because will loss a loot clients like esma bullshit made in europe,i dont need leverage 1:20, 1:20 is only for millionaires with enaught equity. which good reputation brokers also exist which is not esma and asic regulated,anybody knows??
Yep. It's not definite and could be ASIC just flexing muscles:-) They might just be distracting attention following the ballsup w.r.t the Banking Royal Commission. Brokers are easier meat than banks.
  • #16
  • Aug 24, 2019 10:19am Aug 24, 2019 10:19am
Binary options ban should have happened a long time ago. It was about time!
  • #17
  • Aug 24, 2019 3:27pm Aug 24, 2019 3:27pm
I moved to unregulated because IC Markets stopped taking Canadians. The move now is towards unregulated brokers as we are regulated to death. Just look at the success of BitMex for crypto. I've been scammed by several regulated brokers and nothing helped me. Anyway, I use Coinexx.com for FX Evolve.Markets for Crypto for over a year now with no issues. Watch how IC Markets sets up an unregulated firm soon to keep up with the new competition.
  • #18
  • Aug 24, 2019 10:29pm Aug 24, 2019 10:29pm
Quoting HeyYou
ASIC proposes 20:1 leverage for all FX pairs and a binary options ban what do you think ? will you move offshore ?
May as well trade futures an exchange if they do that.

Im at 100:1 currently and thats a bit tight for what I do

I don't think it will happen. It would effectively shut down the Australian fx industry.

If it does I will move offshore but stay with a regulated broker.
BTC Return This Year: na
  • #19
  • Aug 25, 2019 12:15pm Aug 25, 2019 12:15pm
hello

if ASIC proposes 20:1 leverage for all FX pairs so how some brokers give 1:500 or 1:1000 ?
  • #20
  • Aug 26, 2019 3:17am Aug 26, 2019 3:17am
Quoting BubbaHotep
I moved to unregulated because IC Markets stopped taking Canadians. The move now is towards unregulated brokers as we are regulated to death. Just look at the success of BitMex for crypto. I've been scammed by several regulated brokers and nothing helped me. Anyway, I use Coinexx.com for FX Evolve.Markets for Crypto for over a year now with no issues. Watch how IC Markets sets up an unregulated firm soon to keep up with the new competition.
icmarkets allready offering branche icmarkets seyschelles with fca regulated and with normal leverage ...i will imigrate there in case asic fucked all
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