FX Trading in Europe under threat - act now
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Thread: FX Trading in Europe under threat - act now

  1. #1
    OK I have your attention, ESMA are currently suggesting to cap leverage as low as 5 to 1 across the whole of Europe. As we understand it this isn't a joke, this will kill the industry and trading. The brokers are encouraging everyone to voice your concerns into ESMA throughout the appointment period that lasts until 5 Feb..

    DO IT!
    Even in the event that you've never protested at anything before, get off your backside and go through the procedure below.

    Be calm, think about what you're saying.

    Describe how diminishing leverage will cause growth of unregulated brokers outside of the EU, and as a client you will gladly move brokers offering decent leverage.
    *
    Explain why 50:1 (or whatever you believe) is a better cover for leverage. One reason is that in combination with equilibrium protection that is negative, it is going to allow brokerages to set the proper leverage relative to current volatility requirements, as opposed to a control which is inflexible and static.


    These regulations WILL have huge unintended consequences.


    HOW TO PROVIDE YOUR FEEDBACK TO ESMA
    ESMA has very special requirements when filing your perspectives. Below are the steps:


    1) Visit ESMA#8217;s consultation page
    https://www.esma.europa.eu/press-new...ures-contracts

    2) Download the ";Call for Evidence"; Type loed under ";Related Documents";.

    3) Open Microsoft Word or any similar program to offer your feedback.

    4) Copy and paste queries from Page 9 of the proposal to Microsoft Word. You don't need to answer every question but we recommend at replying letters ";B"; and ";I.";

    5) Save your Word file.

    6) Upload your Word file under ";Response Type"; and fill in your details.

    7) Hint ";Respond. ";

    * Deleted: the number of brokers are limited outside of EU.

  2. #2
    Well done mate.

    Don't waste time contacting the FCA. I spoke with them by phone and they would just say they will wait for the ESMA leverage etc. requirements and has to comply with them. I am not sure I feel that 100 percent - it seems likely the FCA will have the right to apply for an exemption when there are particular circumstances, but they won't discuss that with me.

    My SB company say they also anticipate any new ESMA restrictions same, and will simply comply, however I am encouraging them to respond to the ESMA consultation.

    By the way, the ESMA definition of CFD's could consist of financial SB, although this isn't mentioned specifically by name in their consultation document, announcement or press release.

  3. #3
    Quote Originally Posted by ;
    OK now I've got your attention, ESMA are suggesting to cap leverage as low as 5 to 1 across the whole of Europe. This isn't a joke, this will kill the industry and trading as it is known by us. The brokers are inviting everyone to voice the concerns to ESMA during the appointment period that lasts until 5 Feb.. DO IT! If you've never protested at anything get your butt off and go through the procedure below. Be calm, consider what you are saying. Describe how diminishing leverage will lead to expansion of unregulated brokers out of their...
    Yep it is happening. Two of my brokers here in UK are asking us to submit an appliion for pro accounts that will allow more realistic leverage but in a cost and impact to present conditions.not certain how rigorous the appliion would be to meet gas principles but I do know it requires much larger account size and history of this industry.

  4. #4
    Tomorton - Cheers mate. I'm sure it'll encompass everything. They won't leave anything unattended if it's not given now.

    Diceman - Eeesh. I feel that the terms continue for discussion although I've seen a sham consultations earlier in gov. Def. Worth every european trader at. It is all we can do ...

  5. #5
    Well done mate for your info.

    KP

  6. #6
    I told you guys - the fx game will soon be! Your voice is irrelevant. They already made the choice. They wish to eliminate the current financial egy. THEY want to eliminate CASH. THEY want centralized fiat.

    Look around! These regulations are worldwide! Japan, NOW, Russia, Turkey and USA EUROPE! . WAKE UP!

    THEY do not want YOU to speculate with fiscal instruments. WHO ARE THEY?? You know who they are! Because they will delete my article, I can not say their name.

    Forex is the sole legal regulated market with this kind of low entrance barrier. This is temporary anomaly. The gap is closing.

    The fantastic news is there's a new kind of market which can replace FX. Crypto currencies. This will be the new game for us. And what is even better - the regulators and the governments can not put their dirty hands on crypto. The technology isn't even understood by them .

    Just forget about Currency Market.

  7. #7
    Quote Originally Posted by ;
    OK now I have your attention, ESMA are proposing to cap leverage as low as 5 to 1 across all of Europe.
    According to https://www.leaprate.com/forex/regul...everage-limit/ the suggestion would be to still employ a cap of 1:30 to currencies. The 1:5 cap seems to use to Cryptos unless I've missed something in the ESMA document.

  8. #8
    Quote Originally Posted by ;
    I told you men - that the fx game will soon be over soon! Your voice is immaterial. The decision was made by them. They would like to get rid of the current financial system. They would like to get rid of CASH. THEY want centralized electronic fiat. Look around! These regulations are global! Japan, Russia, USA, Turkey and NOW EUROPE! . WAKE UP! THEY don't want YOU to speculate with instruments. WHO ARE THEY?? You know who they are! Since they will delete my article, I can not say their name. Forex is the sole legal regulated market with this kind of low entrance barrier....
    Right. . Since the crypto currency markets are transparent and not regulated by parties commanding 10% of the market behind the drapes. It's possible to believe there's a technology behind some of the crypto currencies on the market, but quite honestly this kind of knowledge does not matter when markets are manipulated that easily. In my opinion forex is definitely the option, when comparing it into currency speculation. I rather trade consistently in a transparent, regulated market (mifid II), backed up with strong fundamentals, than trying to hit the jackpot on some of those crypto currencies.

    That doesn't take away that I completely agree with triphop. New and existing EU loed CFD brokers are already changing their approach. For example, I had to fill in several check before I was able to use to my current broker. Also, more and more brokers are implementing safety measures, such as equilibrium protection that is negative. Lessons are learned from black swans, such as SNB's. There are plenty of alternatives to protect forex retail, in doing that, and mifid II does a excellent job. Decreasing leverage 5 to 1 is exaggerated and should just be a last resort in case other regulations inside mifid II does not appear to work out.

  9. #9

  10. #10
    Where did you see that leverage is going to be decreased? Can you point a link? And if this is all true when is it gont occur? thanks.

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