Re: ESMA CFD limit/ cap & Binaries Ban

2
This will affect only brokers and their clients in EU, but not those that are regulated out of the EU.
On another note I assume that those measures and tight requirements will force brokers (even reputed ones) to establish their branches/entities or affiliate companies in countries like Vanuatu, Belize and etc. in order to keep offering current high leverage conditions via their exotic licenses for traders chose to open accounts there. :)
I believe there is no broker that wish to loose clients and money :)

Re: ESMA CFD limit/ cap & Binaries Ban

3
FrancoisT wrote: Tue Mar 27, 2018 11:50 pm This will affect only brokers and their clients in EU, but not those that are regulated out of the EU.
On another note I assume that those measures and tight requirements will force brokers (even reputed ones) to establish their branches/entities or affiliate companies in countries like Vanuatu, Belize and etc. in order to keep offering current high leverage conditions via their exotic licenses for traders chose to open accounts there. :)
I believe there is no broker that wish to loose clients and money :)
IG Group and Dukascopy have bases in Switzerland. But for example IG has branches/ bases in almost all EU countries as well. So not sure if some EU trader could specifically open an account in Switzerland and if he will be accepted.


Re: ESMA CFD limit/ cap & Binaries Ban

6
bonifaas_abe wrote: Thu Mar 29, 2018 5:07 pm ESMA has just passed regulation that will allow brokers to offer a max of 1:30 leverage on CFDs, so it’s just a matter of a month or two. What if the broker has subsidiary outside the EU, will it be possible to trade higher leverage? I wonder what’s the EU brokers back up plan…
There are Swiss based brokers like Dukascopy Bank that accepts EU traders (minimum deposit €5000) and leverage of 1:200. Others are Australian brokers like GOMarkets or CLM, latter has 1:400 leverage.

There will be workarounds and people will flock to non-EU brokers.

Re: ESMA CFD limit/ cap & Binaries Ban

7
MX01 wrote: Tue Mar 27, 2018 11:55 pm

IG Group and Dukascopy have bases in Switzerland. But for example IG has branches/ bases in almost all EU countries as well. So not sure if some EU trader could specifically open an account in Switzerland and if he will be accepted.
FCA regulated broker should be outside of ESMA regulations, so this might work. Another solution is to change the client categorization from retail to professional and to use the options that categorization is "on specific" discretion :)

Re: ESMA CFD limit/ cap & Binaries Ban

8
FrancoisT wrote: Mon Apr 02, 2018 11:16 pm FCA regulated broker should be outside of ESMA regulations, so this might work. Another solution is to change the client categorization from retail to professional and to use the options that categorization is "on specific" discretion :)
Except as "professional" you either have to have no less than €500K in your account and/ or involved in a professional finance job or a big trading volume in the hundreds of thousands. For most any of these two is almost impossible.

Anyway, there's plenty other brokers Swiss & Australian based to work around this.

Or for CFD's need to have a lot more $$ in account to play with 30:1 leverage.

Re: ESMA CFD limit/ cap & Binaries Ban

10
FrancoisT wrote: Mon Apr 02, 2018 11:16 pm FCA regulated broker should be outside of ESMA regulations, so this might work. Another solution is to change the client categorization from retail to professional and to use the options that categorization is "on specific" discretion :)
No, brokers in UK are affected by ESMA and will implement the rules.
bonifaas_abe wrote: Thu Apr 05, 2018 4:11 pm I prefer EU brokers. Hopefully there will be workarounds, as you are saying. And thanks a lot for sharing about the Swiss brokers, very nice of you.
Wait three months. And then... wait for three months again? I don't understand what these three months mean and what this change. Maybe to remember that this silly institution is still there and want to be paid - thanks for pretty nothing.

It doesn't help but the max leverage allowed in US is 50:1 and in Japan leverage is limited to 25:1 and US traders aren't allowed to trade with a broker from offshore.


Who is online

Users browsing this forum: No registered users and 32 guests