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Re: Australia’s 1:30 leverage: ASIC Announces Leverage Cap, Negative Balance Protection

41 by XXXX
Kiwi wrote: Mon Apr 05, 2021 2:29 pm The new Australian regulations do not apply to every Aussie trader. If your with Pepperstone and have traded over $50,000 with them, all you have to do is pass a online test and you'll get a Pro account and then you can go back to 500:1 leverage or what ever you prefer, It only takes about 24hr to change back over.
The same applies to all brokers, it is an ASIC rule. If you are a seasoned trader with sufficient volume the requirements are not that difficult to achieve. Check with your broker, they should be able to work out if have traded enough volume for you.
nil desperandum

Re: Australia’s 1:30 leverage: ASIC Announces Leverage Cap, Negative Balance Protection

42 by Swiss_cheese
I don't have enough spare capital to make use of the 1:30, would rather invest the majority and use 'play funds' for my CFD trading as it is higher risk and I only put in what I can afford to loose. I was basically forced to look for off-shore options, which so far to be fair I have found to be just as good and have been using one in particular for around 18 months now. Regulations suck imo.....

Re: Australia’s 1:30 leverage: ASIC Announces Leverage Cap, Negative Balance Protection

43 by RplusT
I actually had a short conversation with the EU authorities when they announced that they are going to enforce such leverage "to protect retail traders from losing too much money because they do not understand the risk". When I told them on what basis they conclude that retail traders are stupid and secondly that the only thing they will achieve is pushing them into offshore locations and thus " pretending to protecting them is pure BS" and thus the only thing stupid I can see is their actions. They did not want to address that. But that is exactly what happened.

Re: Australia’s 1:30 leverage: ASIC Announces Leverage Cap, Negative Balance Protection

44 by sebking1986
FourXXXX wrote: Wed May 25, 2022 9:13 pm The same applies to all brokers, it is an ASIC rule. If you are a seasoned trader with sufficient volume the requirements are not that difficult to achieve. Check with your broker, they should be able to work out if have traded enough volume for you.
I think there is a caveat with this though like you lose the negative account balance protection.

Re: Australia’s 1:30 leverage: ASIC Announces Leverage Cap, Negative Balance Protection

46 by Ogee
Haven't seen the Oz regulators guidlines to brokers on what would be required to allow step up to a pro account. In the UK the FCA stipulate 1 of the 3 conditions to be the person having over £500,000 in saleable assets which was based on how much some lost on the SNB Jan 2015 blackswan event. Most retail clients could not pay so the amounts had to be written off which led to some big broker firms like FXCM going bust. The pro rules mean pro's will pay in a similar event while retail clients now get lower leverage but also negative account balance protection. The low leverage means holding more in your account to cover the margin.

Re: Australia’s 1:30 leverage: ASIC Announces Leverage Cap, Negative Balance Protection

47 by XXXX
Ogee wrote: Fri Jun 10, 2022 9:59 pm Haven't seen the Oz regulators guidlines to brokers on what would be required to allow step up to a pro account. In the UK the FCA stipulate 1 of the 3 conditions to be the person having over £500,000 in saleable assets which was based on how much some lost on the SNB Jan 2015 blackswan event. Most retail clients could not pay so the amounts had to be written off which led to some big broker firms like FXCM going bust. The pro rules mean pro's will pay in a similar event while retail clients now get lower leverage but also negative account balance protection. The low leverage means holding more in your account to cover the margin.
Rules here are similar, however, if you are a day trader it is quite easy to get to the volume required for a pro account. Needs to be over 4 quarters in the last 2 years, if you meet that and pass the quiz there is no assets test.

All the details are in the attached PDF from my broker.
Attachments
nil desperandum

Re: Australia’s 1:30 leverage: ASIC Announces Leverage Cap, Negative Balance Protection

48 by Ogee
FourXXXX wrote: Fri Jun 10, 2022 10:07 pm Rules here are similar, however, if you are a day trader it is quite easy to get to the volume required for a pro account. Needs to be over 4 quarters in the last 2 years, if you meet that and pass the quiz there is no assets test.

All the details are in the attached PDF from my broker.
thanks, that's really interesting, not sure what the regulator actually says but I see that different brokers have very different interpretations, that's on them of course.

quick google - 2 different Oz brokers lol.

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Re: Australia’s 1:30 leverage: ASIC Announces Leverage Cap, Negative Balance Protection

50 by HeavLeighGill
Swiss_cheese wrote: Wed Jun 01, 2022 11:12 am I was basically forced to look for off-shore options, which so far to be fair I have found to be just as good and have been using one in particular for around 18 months now. Regulations suck imo.....
Same here. First the issue was with me being from the US, since a lot of the brokers I looked at wouldn't accept me. Then with 1:30 leverage caps, it just makes more sense to go offshore to avoid it.

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