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ESMA bans binary options, sets restrictions on CFDs for retail clients

#1
The European Securities and Markets Authority (ESMA) announced three-month ban on the marketing, distribution or sale of binary options to retail investors and a set of restrictions on CFDs offered to the same type of clients.

The restrictions on CFDs include leverage limits on opening positions; a margin close out rule on a per account basis; a negative balance protection on a per account basis; preventing the use of incentives by a CFD provider; and a standardized risk warning.

To be more precise, the leverage limits on the opening of a position by a retail clients will range from 1:30 to 1:2, depending on the underlying asset.


Re: ESMA bans binary options, sets restrictions on CFDs for retail clients

#2
mlawson71 wrote:
Wed Mar 28, 2018 12:38 am
The European Securities and Markets Authority (ESMA) announced three-month ban on the marketing, distribution or sale of binary options to retail investors and a set of restrictions on CFDs offered to the same type of clients.

The restrictions on CFDs include leverage limits on opening positions; a margin close out rule on a per account basis; a negative balance protection on a per account basis; preventing the use of incentives by a CFD provider; and a standardized risk warning.

To be more precise, the leverage limits on the opening of a position by a retail clients will range from 1:30 to 1:2, depending on the underlying asset.
When exactly it will take place you don't know either, or do you? I couldn't find anything. And are the restrictions to CFDs also a three-month-measurement or without time-limit?

If so, either as EU citizens we go offshore - what is also a stupid idea - or we become professional as quick as possible - what isn't that easy. A maximum leverage of 100:1 or 50:1 would be absolutely fine, but 20:1 is pretty low. I don't want to have to trade EURUSD and not always GBPUSD. Now, trading FX or CFDs is going to become hard work ;) Thanks to crypto hodlers and BO-ler for nothing (who loose maybe most of their money already offshore).

Re: ESMA bans binary options, sets restrictions on CFDs for retail clients

#3
Krelian99 wrote:
Wed Mar 28, 2018 9:23 pm
mlawson71 wrote:
Wed Mar 28, 2018 12:38 am
The European Securities and Markets Authority (ESMA) announced three-month ban on the marketing, distribution or sale of binary options to retail investors and a set of restrictions on CFDs offered to the same type of clients.

The restrictions on CFDs include leverage limits on opening positions; a margin close out rule on a per account basis; a negative balance protection on a per account basis; preventing the use of incentives by a CFD provider; and a standardized risk warning.

To be more precise, the leverage limits on the opening of a position by a retail clients will range from 1:30 to 1:2, depending on the underlying asset.
When exactly it will take place you don't know either, or do you? I couldn't find anything. And are the restrictions to CFDs also a three-month-measurement or without time-limit?

If so, either as EU citizens we go offshore - what is also a stupid idea - or we become professional as quick as possible - what isn't that easy. A maximum leverage of 100:1 or 50:1 would be absolutely fine, but 20:1 is pretty low. I don't want to have to trade EURUSD and not always GBPUSD. Now, trading FX or CFDs is going to become hard work ;) Thanks to crypto hodlers and BO-ler for nothing (who loose maybe most of their money already offshore).
I couldn't find information when it will be implemented either, only that it will be in the foreseeable future. :?

Re: ESMA bans binary options, sets restrictions on CFDs for retail clients

#5
- The major currencies are currency pairs comprising any two of the following currencies:
US Dollar, Euro, Japanese Yen, Pound Sterling, Canadian Dollar or Swiss Franc. All
other currencies are considered non-major.
CAD and CHF are in and AUD isn't. Who is so clever and decides that? At least I can live with GBPJPY and GBPCAD. G'bye GBPAUD and GBPNZD, but 30:1 is an argument.


Re: ESMA bans binary options, sets restrictions on CFDs for retail clients

#8
LazarR wrote: More and more regulators ban binary options and I am completely OK with that as it is pure scam. I am, however, concerned about this CFDs leverage cap, it seems a bit low
That is my issue too. Binary options are completely untrustworthy, but the CFD regulation seems excessive.

Re: ESMA bans binary options, sets restrictions on CFDs for retail clients

#9
People can choose what they want to trade. Some of us prefer Binaries and are good at it, others prefer CFD's. It's only scam if the broker withholds your money. And big brokers like IG, CMC, CLM, GoMarkets, Dukascopy, etc offered Binaries and still will be. - 90%+ of traders lose money regardless of the trading product.

We should all be responsible enough to know if we want to lose our money in CFD's or Binaries and not have some bureaucratic entity decide for us.

So many traders and brokers were against ESMA's proposal but they didn't care. F...k them. Now we can find workarounds and brokers outside of EU-zone.

Re: ESMA bans binary options, sets restrictions on CFDs for retail clients

#10
MX01 wrote:
Fri Mar 30, 2018 2:01 am
People can choose what they want to trade. Some of us prefer Binaries and are good at it, others prefer CFD's. It's only scam if the broker withholds your money. And big brokers like IG, CMC, CLM, GoMarkets, Dukascopy, etc offered Binaries and still will be. - 90%+ of traders lose money regardless of the trading product.

We should all be responsible enough to know if we want to lose our money in CFD's or Binaries and not have some bureaucratic entity decide for us.

So many traders and brokers were against ESMA's proposal but they didn't care. F...k them. Now we can find workarounds and brokers outside of EU-zone.
Answer Dukascopy:

Very kind,
 
keep for now the Account (the regulation has not changed yet) in Europe, in the future a solution will be implemented to meet traders with their own needs.
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