Read carefully, maybe stronger than ESMA.
I’ve contacted my broker and they don’t believe that Asic adds a Compensation Fund Scheme.
I’m afraid they send me with the authentics and famous Vanuatu Regulations.
You can read here the full report written by Asic.
I believe that Australia is aligning with Asia.
Australia: leverage up 20.
Japan: leverage up 25.
South Korea: leverage up 10.
Hong Kong: leverage up 20.
Singapore: leverage up 20.
A surprise for me. I believed they were going to align with Europe.
Probable reason?
Off shore traders from Europe 11%.
Off shore traders from Asia 62% (21% China, 41% rest of Asia)
So i suppose that new traders with Australian brokers after ESMA and FCA new regulations didn’t come from Europe. They came mainly from Asia, running away from Europe. An exodus.
Leverage
Up 20 forex: they don’t consider minors and majors pairs like europe. Same leverage for every pairs.
Up 15 Equity indices: Same leverage every indices. Minors and Majors.
Up 10 Commodities: Except gold.
Up 20 Gold: they apply same leverage than currencies.
Up 2 Cryptos
Up 5 Shares.
And that the Lord helps you.
regulation is a big deal when choosing a broker , but right now regulation brokers review not good as like before.
Now Singapore cuts leverage too. From 50 to 20.
So basically it’s really show that it some sort of income for them and that’s for sure, that’s why they try to do something with Asian people out there, simply the reason is here and there is no other way for that matter and for that. See my point ?
Finally, there will be a Compensation Fund Scheme in Australia.
is that compensation for Australian residents only excluding foreign customers and is it only for BOs and CFDs? What about spot forex?..
Lowering leverage in Australia and elsewhere:
Of course it’s all bollo*ks from the regulators as a good broker would provide a choice of leverages from 1:2 and up and there is plenty of education on risk management on sites…
An uneducated novice trader will have poor results and it doesn’t matter how high is their leverage. Contrary, for a good trader it could be “making a living” situation. The regs r playing a Robin Hood here. Or do they? 
It looks that the main purpose of all this activity to lower the max leverage is to force retail traders to deposit more funds (and hope they lose it all sooner than later).
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The Ceo of Pepperstone talk about the Asic and it new regulations.
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I hope the leading Australian brokers could fight off this clueless ASIC regulators who are like a monkey want to copy the ESMA rules. These regs are not for traders. The hope is very slim thou…
The article talks about how concerned the australian brokers are.
ASIC laid out their corporate plans for the 2020 - 2024 period.The most crucial thing that will be its main focus is the COVID-19 pandemic, more specifically the financial consequences that arose because of it.
The Australian watchdog will take action to address this long term impact that the COVID-19 pandemic is expected to have. In particular ASIC will focus on five crucial strategies.
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The Global Cabal has finally caught up with Australia’s Regulators… was always just a matter of time…
ASIC reviews in 2017, 2019 and 2020 found that most retail clients lose money trading CFDs.
"During a volatile five-week period in March and April 2020, the retail clients of a sample of 13 CFD issuers made a net loss of more than $774 million. During this period:
• over 1.1 million CFD positions were terminated under margin close-out arrangements (compared with 9.3 million over the full year of 2018)*
• more than 15,000 retail client CFD trading accounts fell into negative balance owing a total of $10.9 million (compared with 41,000 accounts owing $33 million over the full year of 2018). Some debts were forgiven.
ASIC Commissioner said, ‘Heavy losses sustained by retail clients trading in highly leveraged CFDs and ongoing market volatility during the COVID-19 pandemic highlight the need for stronger CFD protections in the product intervention order."
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The Good: It stops catastrophic losses being generated during spikes or flash crashes… That’s It!
The Bad: Traders will have to have much more capital tied up in their Brokers accounts with an increased risk of loss if your Broker is liquidated… Also stops the clever few that could profit and expand a micro account dead in their tracks…
“Regulators despise to see someone with little, intelligently converted, into someone with much…” TWB
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