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FCA imposes bonus ban and leverage cap for CFDs

  • #21
  • Dec 6, 2016 10:23am Dec 6, 2016 10:23am
Darling FCA if you are concern of me and others
force brokers a serious test before get me a real easy account.
Nothing else
  • #22
  • Dec 6, 2016 10:31am Dec 6, 2016 10:31am
"All have right here" but don´t be angry if the next Market impact is coming and all with high leverage must paid in after the margin call + x Amount.
The only leveraged Market people are thinking the can only lost there Account and not more is Forex but that is wrong. you can lost much more then your initial Deposit same like futures. And i bet in the next 12 month most brokers will close there retailbusiness.
aka Liquinvest
  • #23
  • Dec 6, 2016 11:05am Dec 6, 2016 11:05am
50x is plenty.
  • #24
  • Dec 6, 2016 11:59am Dec 6, 2016 11:59am
Wrote this a while back. I still stand my point.

btw, thr risk for a newbie to blow a account with 25x leverage is the same if the leverage was 500x
Make fx trading license based, so we all need a license to trade, thats that simple.
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MY SITTING, NEVER MY THINKING!
  • #25
  • Dec 6, 2016 12:08pm Dec 6, 2016 12:08pm
Next these countries are gonna cap forex 50:1 like the USA, there is a war on forex and cfd be prepared for 50:1
  • #26
  • Dec 6, 2016 12:11pm Dec 6, 2016 12:11pm
Game over for scalping soon, maybe?
  • #27
  • Dec 6, 2016 12:13pm Dec 6, 2016 12:13pm
Quoting merrygold
Wrote this a while back. I still stand my point. btw, thr risk for a newbie to blow a account with 25x leverage is the same if the leverage was 500x Make fx trading license based, so we all need a license to trade, thats that simple. {image}
I agree with what you say here. Out of interest, what do you think the minimum deposit should be?
  • #28
  • Dec 6, 2016 12:16pm Dec 6, 2016 12:16pm
Quoting PoundTrader
Next these countries are gonna cap forex 50:1 like the USA, there is a war on forex and cfd be prepared for 50:1

The war is only here because of the forex advertising, the advertising of fx trading is the root of all this evil... - People get sucked into the rabbit hole, and gets screwed. Not screwed because the broker is a bad guy, but because the newbie behind the pc has no fucking clue of what he is doing. The next step is to call the local regulation and tell them, this broker cheated me for all money i got, when the truth is that the newbie traded 5lot on his 1675 dollar account.

Back to the topic; Any who know when this changing will take place?
MY SITTING, NEVER MY THINKING!
  • #29
  • Dec 6, 2016 12:19pm Dec 6, 2016 12:19pm
Quoting simond2002
{quote} I agree with what you say here. Out of interest, what do you think the minimum deposit should be?
I my mind; 5-10k of euro or dollar

That will make people think it over, and perhaps make them study before they enter this market.

I will eat my hat on this; 75% of all complaint to various regulations are made from people with under 3k in their trade account.
MY SITTING, NEVER MY THINKING!
  • #30
  • Dec 6, 2016 12:24pm Dec 6, 2016 12:24pm
What is your opinion about offshore brokers & australian brokers? - Think they also will cut down leverage?
MY SITTING, NEVER MY THINKING!
  • #31
  • Dec 6, 2016 12:33pm Dec 6, 2016 12:33pm
Low leverage is not going to save retail traders. The cap on leverage will force traders to put more money to brokers account. This is really bad. This FCA move will badly affect successful traders with less money to invest.
  • #32
  • Dec 6, 2016 12:40pm Dec 6, 2016 12:40pm
A noob/experienced/loser will keep losing money lower leverage just will make it slower.
  • #33
  • Dec 6, 2016 12:42pm Dec 6, 2016 12:42pm
Quoting edyraper
A noob/experienced/loser will keep losing money lower leverage just will make it slower.
so true
  • #34
  • Dec 6, 2016 12:43pm Dec 6, 2016 12:43pm
Quoting TradeGraph
Low leverage is not going to save retail traders. The cap on leverage will force traders to put more money to brokers account. This is really bad. This FCA move will badly affect successful traders with less money to invest.
Nonsense. It will just make them have to hold a bit more money in their account as margin for their trades. Period. If they are successful, it's not an issue.

As for losses, a lower leverage ratio means that when people blow their accounts, they have a lot more of their deposit left in their account. Therefore, it's actually a safer way to trade...trade movements don't hit as hard (and obviously gains increase a bit slower as well), but when the losses hit, they take less (of the overall balance).

But people will need to step up and have a bit more funding to kick the trading off, or reduce their trade size accordingly. 2-4x of what is typical (1:50 vs 1:100 or 1:200) isn't a huge issue.
  • #35
  • Dec 6, 2016 12:43pm Dec 6, 2016 12:43pm
Quoting merrygold
{quote} The war is only here because of the forex advertising, the advertising of fx trading is the root of all this evil... - People get sucked into the rabbit hole, and gets screwed. Not screwed because the broker is a bad guy, but because the newbie behind the pc has no fucking clue of what he is doing. The next step is to call the local regulation and tell them, this broker cheated me for all money i got, when the truth is that the newbie traded 5lot on his 1675 dollar account. Back to the topic; Any who know when this changing will take place?...
don't know when changes gonna happen but i can see where this is heading
  • #36
  • Dec 6, 2016 12:51pm Dec 6, 2016 12:51pm
Quoting PoundTrader
{quote}don't know when changes gonna happen but i can see where this is heading
Same here. But please tell what you think, i am a Big believer of hearing others opinion
MY SITTING, NEVER MY THINKING!
  • #37
  • Dec 6, 2016 12:57pm Dec 6, 2016 12:57pm
Quoting FerruFx
Despite what people think about this, that's a great news for traders. High leverage and bonuses are the best commercial incentives to attract newbies .. who have no idea about the danger of high leverage. Yes they write in small "Trading involves significant risk of loss" ... but that's like giving a gun to a teenager and warning that it's dangerous to play russian roulette!
Agreed newbies are 95% loses they need more protection if you ask me. The whole industry needs be fixed as forex is heavily manipulated.
  • #38
  • Dec 6, 2016 12:59pm Dec 6, 2016 12:59pm
It's a proposal for now and considering they're talking about retail there might be a way around for more professional traders.
  • #39
  • Dec 6, 2016 12:59pm Dec 6, 2016 12:59pm
Quoting merrygold
{quote} Back to the topic; Any who know when this changing will take place?
FCA is waiting for feedback of their proposal until March 7 2017.
After evaluating and reviewing the final regulations are going to be applied during spring 2017.
  • #40
  • Dec 6, 2016 1:08pm Dec 6, 2016 1:08pm
The spot FX market is based on wrong and outdated model! This is the real reason why we see so many scammers and dishonest practices followed by stupid regulations....

What we really need, is a global centralized exchange for FX trading.
We just have to get rid of all OTC trading and all bucket shops and scammers.

We need real electronic exchange, with unified standardized platform, public open order book, market depth...... open free API / FIX access.......

This central exchange should be open to anyone. It doesn't matter if you your trade size is 1K or 1000 million! One order book for everyone! Period.

This will solve almost all problems that we still see today.

With centralized exchange:
All brokers will adopt the pure agency model.
Price manipulations will become truly impossible.
Everyone will be able to act as market maker (to earn the spread).
Everyone will see the same price, the same volume and the same market depth.
This is what we really need.
Let's see if the regulators have balls to do this in the next years!
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