Would u stay w/ ur FCA broker if they change to < 1:400? | Forex Factory

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Would u stay w/ ur FCA broker if they change to < 1:400?

  • Poll

  • Would u stay with your FCA broker if they change to < 1:400?
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  • #1
  • First Post: Feb 24, 2017 8:23am Feb 24, 2017 8:23am
Hello All,

As you all might know the FCA is planning to change the leverage requirements (among other things), and this will undoubtedly affect the way many forex traders trade. We don't know what they will decide at the end, but, IF they would change the leverage to anything less than 1:400....would you stay with your FCA broker?....or go to another broker under a different regulatory body that allows you to trade with a more ample leverage?
  • #2
  • Feb 24, 2017 12:50pm Feb 24, 2017 12:50pm
Quoting meyoik
Hello All, As you all might know the FCA is planning to change the leverage requirements (among other things), and this will undoubtedly affect the way many forex traders trade. We don't know what they will decide at the end, but, IF they would change the leverage to anything less than 1:400....would you stay with your FCA broker?....or go to another broker under a different regulatory body that allows you to trade with a more ample leverage?
Anything less then 200:1 im out
  • #3
  • Feb 24, 2017 4:17pm Feb 24, 2017 4:17pm
50:1 is fine, however I'm strongly against the CFD & FX Crackdown.

Also the Poll should have more options...no one trades at 400:1 leverage...
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  • #4
  • Feb 24, 2017 5:48pm Feb 24, 2017 5:48pm
Quoting Phil_GMT
50:1 is fine, however I'm strongly against the CFD & FX Crackdown. Also the Poll should have more options...no one trades at 400:1 leverage...
I think what you mean is you don't, there are thousands of traders that do
  • #5
  • Feb 24, 2017 5:54pm Feb 24, 2017 5:54pm
Quoting meyoik
{quote} I think what you mean is you don't, there are thousands of traders that do
100% agree, I would leave my FCA broker if they would change the leverage requirements to less than 1:400...simply because that just means that would be the first of many many many changes....once they do that, the door is open to gad knows what.... I would take that as a signal: "The party is over!"
The Pips man cometh
  • #6
  • Feb 24, 2017 7:38pm Feb 24, 2017 7:38pm
Quoting IcePips
{quote} 100% agree, I would leave my FCA broker if they would change the leverage requirements to less than 1:400...simply because that just means that would be the first of many many many changes....once they do that, the door is open to gad knows what.... I would take that as a signal: "The party is over!"
Good point. One can imagine they are going to phase out these changes, and it won't be a big bang one shot type of thing. Whatever they do, is merely the start...

If the FCA decides to go ahead with these changes, CySec brokers will overnight become the landing spot for thousands of traders...specially from the EU.
CySec has already started cleaning up their act, becoming much more professional than ever before...
  • #7
  • Feb 25, 2017 9:28am Feb 25, 2017 9:28am
Quoting meyoik
{quote} Good point. One can imagine they are going to phase out these changes, and it won't be a big bang one shot type of thing. Whatever they do, is merely the start... If the FCA decides to go ahead with these changes, CySec brokers will overnight become the landing spot for thousands of traders...specially from the EU. CySec has already started cleaning up their act, becoming much more professional than ever before...
http://www.financemagnates.com/forex...kills-bonuses/
All Assets NAS100 GLD BTC AUS JPY GBP All Time Return: 17.5%
  • #8
  • Feb 25, 2017 11:32am Feb 25, 2017 11:32am
Quoting meyoik
{quote} I think what you mean is you don't, there are thousands of traders that do
Depends on if you're talking about offered or effective leverage.

But to answer the question:
for non-spreadbetting traders there is no real reason to stay. Spread betting for UK residents is a different story of course: deposit more or pay tax is an easy made decision. One don't even gets a Christmas card for a million in tax per annum so one would most likely simply deposit more money.
  • #9
  • Edited 7:53am Feb 26, 2017 6:06am | Edited 7:53am
Quoting Phil_GMT
{quote} http://www.financemagnates.com/forex...kills-bonuses/
Hi Phil,
If you look into this a bit more in depth -feel free to speak to any broker under CySec regulation- what the rule actually says is that new accounts start off with 1:50, but if you want to increase it (I brought it up to 1:500 with one email) you just need to tell them and that's it. Some actually are building it in the registration workflow so you can just tick the leverage you want. The point, according to them, is that you are AWARE of what you are doing. The FCA is putting the ceiling at 1:50...or 1:10....or 1:5....and that'll be it.
  • #10
  • Feb 26, 2017 7:55am Feb 26, 2017 7:55am
Quoting JensG
{quote} for non-spreadbetting traders there is no real reason to stay.
Exactly
  • #11
  • Feb 26, 2017 3:19pm Feb 26, 2017 3:19pm
Quoting meyoik
{quote} Hi Phil, If you look into this a bit more in depth -feel free to speak to any broker under CySec regulation- what the rule actually says is that new accounts start off with 1:50, but if you want to increase it (I brought it up to 1:500 with one email) you just need to tell them and that's it. Some actually are building it in the registration workflow so you can just tick the leverage you want. The point, according to them, is that you are AWARE of what you are doing. The FCA is putting the ceiling at 1:50...or 1:10....or 1:5....and that'll...
Correct, I opened an account with a CySec broker this year, and it was very low leverage...1:100 I think....I started chatting with them about it, and they asked me to confirm my preference via email and got 1:500....so I stayed with them
May the pips be with you
  • #12
  • Feb 27, 2017 6:13am Feb 27, 2017 6:13am
If we move, the question is where to go. One option is, indeed, CySEC-regulated brokers, but how much longer will the laxer regulation last? Brokers all over Europe and beyond are tightening the regulation – in Germany they’re gearing up to ban CFD trading altogether, Belgium already has, France has banned the advertising of anything Forex-related and the Netherlands wants to do the same and probably will. Usually this is a prelude to an even stricter regulation, so how long before they change the leverage regulation too?
  • #13
  • Feb 27, 2017 9:36am Feb 27, 2017 9:36am
Quoting mlawson71
If we move, the question is where to go. One option is, indeed, CySEC-regulated brokers, but how much longer will the laxer regulation last? Brokers all over Europe and beyond are tightening the regulation in Germany theyre gearing up to ban CFD trading altogether, Belgium already has, France has banned the advertising of anything Forex-related and the Netherlands wants to do the same and probably will. Usually this is a prelude...
Actually there has been a lot of misinformation in the media, and with some of the posts in this forum on that topic. You can still trade in Belgium, but the conditions are terrible...Germany, France, and the Netherlands are looking into (some have indeed already taken steps) regulating the advertising of such the same they do tobacco for example. So that leaves us with CySec which has already introduced measures, but they are way softer. You can expect these to stay more relaxed than anyone else give a big chunk of Cyprus' GDP comes from this....they won't burn themselves. Another option you start hearing more and more is Malta (EU member with an EU financial passport). They are already up to their necks in online gaming, and Malta could very easily be the next destination for Forex brokers if CySec drops the ball and FCA brokers lose their attractiveness due to regulation.
May the pips be with you
  • #14
  • Feb 27, 2017 10:33am Feb 27, 2017 10:33am
Quoting JediJones
{quote} Actually there has been a lot of misinformation in the media, and with some of the posts in this forum on that topic. You can still trade in Belgium, but the conditions are terrible...Germany, France, and the Netherlands are looking into (some have indeed already taken steps) regulating the advertising of such the same they do tobacco for example. So that leaves us with CySec which has already introduced measures, but they are way softer. You can expect these to stay more relaxed than anyone else give a big chunk of Cyprus' GDP comes from...
True, Malta owns online gaming and gambling, it would take just a flick of the switch for them to host every (ex) UK broker that needs to operate in the EU.

Another interesting set of candidates could be the Baltics and Finland, both very well positioned to service the potential upcoming gaps in the FX markets.
The Pips man cometh
  • #15
  • Feb 27, 2017 2:08pm Feb 27, 2017 2:08pm
Quoting mlawson71
If we move, the question is where to go. One option is, indeed, CySEC-regulated brokers, but how much longer will the laxer regulation last? Brokers all over Europe and beyond are tightening the regulation in Germany theyre gearing up to ban CFD trading altogether, Belgium already has, France has banned the advertising of anything Forex-related and the Netherlands wants to do the same and probably will. Usually this is a prelude...
Forex brokers will need to take a page out of the Sports betting houses -especially the ones in the UK....they are selling a service that is waaaaaay more dangerous and reckless than retail forex trading on its worst day. They've manage to keep regulators at bay by setting up awareness campaigns, gambler's anonymous type helplines....Forex brokers need to wake up and realize there are many industry peers that have managed quite efficiently to run their business models which are way more dangerous than trading. Trading has a learning curve...if Messi scores on the 71st minute is something that you will never be able to predict....this is purely and only luck....
  • #16
  • Feb 27, 2017 4:52pm Feb 27, 2017 4:52pm
Quoting mlawson71
If we move, the question is where to go. One option is, indeed, CySEC-regulated brokers, but how much longer will the laxer regulation last? Brokers all over Europe and beyond are tightening the regulation in Germany theyre gearing up to ban CFD trading altogether, Belgium already has, France has banned the advertising of anything Forex-related and the Netherlands wants to do the same and probably will. Usually this is a prelude...
Let's just hope cooler heads prevail, and that they don't introduce any radical changes without forgetting that the trader will always be responsible for their own trading, that will never change. If not, then let's just ban alcohol as well while we're at it
May the pips be with you
  • #17
  • Feb 27, 2017 5:02pm Feb 27, 2017 5:02pm
Quoting meyoik
Would u stay w/ ur...
English please
Be water, my friend
  • #18
  • Feb 27, 2017 5:13pm Feb 27, 2017 5:13pm
Quoting JediJones
{quote} Let's just hope cooler heads prevail, and that they don't introduce any radical changes without forgetting that the trader will always be responsible for their own trading, that will never change. If not, then let's just ban alcohol as well while we're at it
Correct, let's hope there's no radical changes...it's the trader's responsibility always. Information/awareness campaign is more important.
The Pips man cometh
  • #19
  • Feb 27, 2017 5:19pm Feb 27, 2017 5:19pm
Quoting spocktrader
{quote} English please
Hi spocktrader, agree with you 100%...the reason why I had to shorten it was because there is a character limit on the title field.
  • #20
  • Last Post: Feb 27, 2017 5:47pm Feb 27, 2017 5:47pm
Quoting IcePips
{quote} True, Malta owns online gaming and gambling, it would take just a flick of the switch for them to host every (ex) UK broker that needs to operate in the EU. Another interesting set of candidates could be the Baltics and Finland, both very well positioned to service the potential upcoming gaps in the FX markets.
Maybe this is just the nudge these countries need to start promoting Forex brokers in their own countries and increase the Forex offering to all traders

This could be a good thing people!!!
May the pips be with you
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