Breaking News: Belgium bans all leveraged Forex, CFDs | Forex Factory

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Breaking News: Belgium bans all leveraged Forex, CFDs

  • #1
  • First Post: Aug 14, 2016 5:53am Aug 14, 2016 5:53am
Breaking Forex Industry News… Following our recent report that France’s financial regulator AMF has banned all advertising of Forex products, binary options and some CFDs, LeapRate has learned that Belgium’s regulator FSMA has taken the measure a step further and banned not just the advertising and marketing aspect, but also offering these products for sale to Belgian traders altogether.

Meaning, a total ban on leveraged financial products trading in Belgium for retail traders.

What does this mean for brokers regulated elsewhere in the EU?

https://www.leaprate.com/2016/08/bel...tions-trading/
  • #2
  • Aug 14, 2016 5:58am Aug 14, 2016 5:58am
https://www.leaprate.com/2016/08/bel...tions-trading/
  • #3
  • Aug 14, 2016 7:15am Aug 14, 2016 7:15am
wonder how many other countries gonna follow the lead and will this effect the euro?
  • #4
  • Aug 14, 2016 2:43pm Aug 14, 2016 2:43pm
Belgium is NOT a big player in the leveraged forex market anyway. Has anyone heard of a Belgian broker? Their loss.
Make your losses in demo. Earn your profits live.
  • #5
  • Aug 14, 2016 3:04pm Aug 14, 2016 3:04pm
Quoting Forexia
Belgium is NOT a big player in the leveraged forex market anyway. Has anyone heard of a Belgian broker? Their loss.
It isn't just a ban on brokers in Belgium.
It means that if you live in Belgium, you cannot trade forex anymore with any broker from Belgium or anywhere else in the EU.
  • #6
  • Edited 10:43pm Aug 14, 2016 5:25pm | Edited 10:43pm
Quoting mitch77
{quote} It isn't just a ban on brokers in Belgium. It means that if you live in Belgium, you cannot trade forex anymore with any broker from Belgium or anywhere else in the EU.
Trade with brokers from UK then since UK is no longer part of EU. FCA is a much better regulator; brokers regulated by FCA UK are lot better anyway.
Make your losses in demo. Earn your profits live.
  • #7
  • Aug 14, 2016 10:26pm Aug 14, 2016 10:26pm
So by regulating against the regulated broker scene, Belgium may actually be doing more harm than good... How many Belgian traders will now be forced to simply trade with an unregulated broker, or simply someone in the Caribbean that will have no regard for the rules?

With the way the industry is heading, many other country's will be using Belgium as a case study before ramping up their own restrictions.
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  • #8
  • Aug 14, 2016 10:42pm Aug 14, 2016 10:42pm
This is becoming common, there are problems with brokers all over the world...

Does this mean that one day all brokers will be banned everywhere?

First USA, then Australia, France had a problema a few weeks ago, now Belgium.

Should I fear?
A good strategy for trading is... the opposite of having a bad strategy.
  • #9
  • Aug 14, 2016 10:57pm Aug 14, 2016 10:57pm
Quoting mitch77
{quote} It isn't just a ban on brokers in Belgium. It means that if you live in Belgium, you cannot trade forex anymore with any broker from Belgium or anywhere else in the EU.
  • #10
  • Edited 11:42pm Aug 14, 2016 11:15pm | Edited 11:42pm
Quoting Shakespeare (Hamlet (1.4), Marcellus to Horatio):


Something is rotten in the state of Forex.
  • #11
  • Aug 14, 2016 11:49pm Aug 14, 2016 11:49pm
I'm from Belgium, what can I do to still be able to trade?
I am in shock pfffffffff!
  • #12
  • Aug 15, 2016 1:04am Aug 15, 2016 1:04am
Quoting Maverick1974
I'm from Belgium, what can I do to still be able to trade? I am in shock pfffffffff!
Like I said before:

Quoting Forexia
{quote} Trade with brokers from UK then since UK is no longer part of EU. FCA is a much better regulator; brokers regulated by FCA UK are lot better anyway.
Or get out of Belgium. Lots of nice places to live in Europe or move to Singapore, the best place to trade FX.
Make your losses in demo. Earn your profits live.
  • #13
  • Aug 15, 2016 2:16pm Aug 15, 2016 2:16pm
Quoting Maverick1974
I'm from Belgium, what can I do to still be able to trade? I am in shock pfffffffff!
  • #14
  • Edited Aug 16, 2016 11:06am Aug 15, 2016 4:27pm | Edited Aug 16, 2016 11:06am
Overruling MiFID on OTC spot FX regulation is quite an interesting precedent..

As far as binary options go, they should have followed the route of the Channel Islands and other jurisdictions by classifying them as a gambling product (rightfully so), and regulating them separately as such.
  • #15
  • Aug 15, 2016 4:30pm Aug 15, 2016 4:30pm
Quoting Forexia
{quote} Trade with brokers from UK then since UK is no longer part of EU. FCA is a much better regulator; brokers regulated by FCA UK are lot better anyway.
UK is still a member, if they leave without retaining passporting rights they might not be allowed to offer to EU customers at all. But actually that doesn't matter that much in this case. Brokers are not outside the law and could theoretically be punished for offering to Belgium customers independent of the brokers actual country of incorporation.

However, it might be interesting to find out the exact definition of retail. Many "better" brokers do not offer to retail at all, you need to classify as a professional trader which usually isn't that hard if you're serious about trading.
There is one definite way out though: Belgium has no CFC rules, so going off-shore is easy and has no big tax complications You can actually leave the country without leaving it!
  • #16
  • Aug 15, 2016 5:12pm Aug 15, 2016 5:12pm
Quoting Mingary
Quoting Shakespeare (Hamlet (1.4), Marcellus to Horatio): Something is rotten in the state of Forex.
Indeed... must be the retail crowd starting to outsmart the quants...
mind over matter
  • #17
  • Aug 15, 2016 6:12pm Aug 15, 2016 6:12pm
Quoting JensG
{quote}Belgium has no CFC rules, so going off-shore is easy and has no big tax complications You can actually leave the country without leaving it!
I wish it was that easy
  • #18
  • Edited 12:48am Aug 16, 2016 12:36am | Edited 12:48am
Quoting PowerTrade
This is becoming common, there are problems with brokers all over the world... Does this mean that one day all brokers will be banned everywhere? First USA, then Australia, France had a problema a few weeks ago, now Belgium. Should I fear?

France banned only advertising and I think it's not so bad, because it is very aggressive, especially by MM brokers that induce newbies to make "very good recommended trades" just to take whole account. USA didn't ban retail forex trading, but only trading with foreign brokers. What about Australia? I haven't heard anything.
  • #19
  • Aug 16, 2016 12:39am Aug 16, 2016 12:39am
Quoting Maverick1974
I'm from Belgium, what can I do to still be able to trade? I am in shock pfffffffff!

Don't worry, if you are serious about trading just open account with any FCA or ASIC regulated broker and tell them that you want to be treated as professional trader
  • #20
  • Aug 16, 2016 1:48am Aug 16, 2016 1:48am
Quoting Dkam
{quote} I wish it was that easy
Care to explain where the problem is?
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