Restricted by ESMA? Here’s How To Trade Over 1:30 Leverage

Restricted by ESMA? Here’s How To Trade Over 1:30 Leverage


The European securities markets
authority also known as ESMAon March the 23rd agreed measures that put
provisions on contracts for differences also known as CFDs now if you’re a
retail trader trading CFDs or traded binary options in the past you’d be well
familiar with these products these rules take place across the entire EU as well
as the UK now through this video we’re going to talk to you about what these
measures include how they impact you and what you could do about it
now the agreed measures affect binary options so there’s a complete
prohibition on the marketing of binary options we all know how much grief it’s
caused in the industry and it’s probably the right standby by ESMA secondly the
one that’s caused the big uproar in the industry is on CFDs contracts for
differences now these will apply to retail investors so that’s an investor a
typical trader would say under $50,000 in a trading account trading on a
hundred to one to hundreds one Plus leverage what the norm has been over the
last 10 to 15 years now what happened is the restrictions coming into play affect
your leverage your ability to open positions your margin call your account
protection and also the way you understand risks from your trading now
it is important to note that the MIFR who govern ESMA have put this as a
temporary provision with a view to seeing how it works with a view then to
extending for a further three months now as everybody knows in the industry or a
well-known fact a lot of retail traders lose money these measures are put into
place to protect will add an extra layer of protection for retail investors when
they’re trading CFDs which are typically pretty complex products a bit of
analysis done by the NCA which is the national competent authority they said
that within EU jurisdictions between 74 to
89% retail accounts typically lose money now a part of these measures moving
forward would mean every single broker would have to display what that
percentage of client losses are on their total pride book now digging deeper into
the rules ESMA have agreed under article 40 of the
markets in financial instruments regulation that leverage on major
currency pairs like your typical euro US dollar pound against the dollar will be
capped at 30 to one non major pairs capped at twenty to one say you’re more
exotic pairs dollar against a tree dollar against the Norwegian kroner for
example with commodities gold as well as non major equity indices they’ll be
capped at ten to one so big changes there on that landscape for individual
equities if you’re trading shares they’ll be capped at five to one and if
you’ve been dabbling also in crypto currencies two to one leverage caps now
that’s pretty huge on a per account base it’s also standardized level of margin
that’s available for all retail clients across the board you’re after
negative account balance protection may be going in your favor because and part
of the ruling is that you have to have you’ll have to be offered negative
balance protection and watch out for a lack of advertisements online as
there’ll be large restrictions on incentives for these brokers to offer
traded CFDs or remember you’ve got to have to read the risk warning as well
because that will have a lot more information about these changes so
what’s next ESMA now intends to adopt these measures in all different EU
languages in the coming weeks the final notice will be published on their
website very imminently and within a month we should start to see these
changes take place after it being had it has been published on the their website
or their Official Journal Oh Jay it’s called so moving forward why have we
done this video we’ve done it to show you what these rules are and how they
will affect you whoever at BlackBull markets remain pretty much
unaffected as we fall outside of this jurisdiction so our leverage still
remains at five hundred to one across major FX payers you can access gold from
two hundred to one and other major indices from 50 to one or a hundred to
one so if you’re still keen on using greater margin for your trading please
do contact us and we’ll be delighted to speak to you more about our services
thank you very much for your time and we wish you the best of luck with your
trading

Comments

  1. Post
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    Marius Pacevicius

    I have and can bring from 1000 to 10000 accounts within 5 years time. If you guys maintain leverage as normal, i am signing up today!

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    Mark Wheeler

    Beware guys, Esma rules were made to guard against market makers such as blackball markets.Anyone who offers you 1:500 is out to bust you ASAP. as anyone whose been around anytime in the markets will tell you .Lets see how long they leave this comment up for all to see.These are the guys taking the other side of your trades and when we get another black swan event as we will they will be filing for bankruptcy!Any professional trades care to comment on this video? You've been warned!!

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    Mara Ram

    well basically you need to be rich to play now. Before i could buy 500 barrels of oil with a margin of just £180, now i need £2700 for the same amount of barrels. Or, i can spend less money but then the amount I can get back is ridiculous. But this will not affect rich people for who £2700 is nothing.

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    Piero Cafasso

    I recently applied for their Demo account which I've downloaded and am busy getting familiar with………looks very good to me……it's the MT4 platform basically which you will "demo" and "trade" on which is far more accurate than www.crapbroker.com.…..!!! : (
    It's absolutely worth taking the time to learn and get familiar with the MT4 platform as the data is real time and not some delayed / adjusted rubbish through www.bellendoptions.com...!!! : (
    Fair play to this gentlemen and his crowd……very professional…….received extremely professional email and phone call from them offering their "non-pressured" and "non-pushy" assistance if required…..: )
    I too have been very sensible in my market studies for 3 years only to be shafted by ESMA…….not good……!!! : ( Very frustrating…!!!
    Hopefully this will be a good window of opportunity for a few years at least……: )
    (It's not illegal as a trader to avail of this opportunity as far as I have researched…..and I have no brown envelopes or affiliate fees heading my way after this statement either……not yet anyway……..: ) Credit where credit is due…….: )

  10. Post
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    Alan Haynes

    You aren't impacted because you are unregulated. Basically means you can steal someones entire balance and blame it on the markets and nobody can do a thing about it.

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    Adjei Ankamah

    what gives them the right to tell other matured adults how the can use thier money? these new rules are just another way to rip traders off, all in the name of keeping traders safe, only a noob will believe that. This simply restricts and puts a big burden on a retail traders account, because the less your leverage, the harder it is to trade out of a losing position, and hence broker gets your money….its a big scam, we need to protest this nonsense, otherwise retail trading is dead.

  13. Post
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    J T

    "Protect"… LOL! A bunch of brokerage companies in Europe lost their ass with amateur traders. THAT'S the reality of the situation. So now, the Pro traders are screwed..unless you have 50-100k equity, there's basically no way to make any money in the market. Again, the EU has screwed the people. Perfect.

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    paul k

    Ok right,whats the minimum account size for upto 1:500 leverage,because most will still give you large leverage for large account sizes of £100k plus accounts which most retail traders dont have

  16. Post
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    Sim Rybak

    why tf they doing that? I don't need their protection, grown up people understand the risks, what about alcohol? or casinos?, there is risk everywhere. This ban is against democracy, and freedom.

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    Sharon Candy

    contact authurclinton1 (a) g. m. a. i. l if really you want to be a successful trader. Do not gamble with your funds, Authur is the best. I have traded for only 8 months and my experience is awesome. Even older traders have come to envy me but i don't do much, I just follow his instructions strictly.

  19. Post
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    Michel

    So if you were trading on a 1 to 200 leverage with a 5 000 euro account – you have now to trade at 1 to 20 with a 50 000 euro account. I think that simply multiply the risk by 10 – Thank you.

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    Vertex Signals

    *Because ESMA is a supranational financial regulator for the European Union, their legislations overrule and govern all national competent authorities in the EU such as the FCA *

    I can't wait until UK leaves the European Union for FCA to take back their own rules.

    EU is a cancer.

    Brexit fast, please

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