How have you not started already since Oct 2008, according to your join date!
Lets just hold back though and watch this space, and finally adjust to the outcome. There is clearly a split view on what scenario may prevail, from a soft regulation to a full on hard regulation where lots of clients will be effected.
Iām going to hope for the best, the best being some way I still get to play without too much difficulty! So far all itās cost me is a monitor, a mouse and a lot of time, the first two would have happened sooner or later anyway and thereās much worse ways to spend my time, it would be a shame if it was all for nothing though!
Iām going to stick to forward testing a few strategies on demo accounts and not so much time learning new things until the results are in.
Update:
FCA (Financial Conduct Authority) delays outcome and final decisions - now awaiting decisions form ESMA (European Securities and Market Authority). The FCA have understood that the ESMA are evaluating similar guidelines and regulations which the FCA were also evaluating. Therefore it makes sense to wait and see what the ESMA say first. Final decision/implementation from ESMA should be no later than 03.01.2018. Itās worth understanding that the FCA may well ābolt-onā additional regulations for UK based retail clients on top of what is decided by the ESMA.
Either way - What started as a UK Broker focused review on regulations is now turning to a review on all European Brokers, which is rather significant. We could see a real shift in the way that the retail sector is ran from next year, hopefully for the better? As for who initiated these talks first, the FCA or the ESMA; which came first, the chicken or the egg?
Here is a link to all possible European changes that may take place within the retail sector for CFD and rolling Spot FX accounts. [as always, you will need to read between the lines and take the hints]
Key Summary:
A reduction in Leverage has been a big focus, along with guaranteed maximum account losses not exceeding deposit amount and a ban on advertising and bonus incentives.
A minor point to pick up on is that the minimum account opening deposit value is looking to increase to a value that cuts out low level retail clients - start saving if youāre hoping to open an account next year with less than perhaps $1,000 (at a guess).
Some of thatās a really good idea.
The ban on bonus incentives, and increase in minimum deposits, are really things that only scammers, crooks and the incredibly naive could object to. There are quite a lot of all those groups, though.
I feel quite comfortable with the proposals, nothing to harsh or irrational.
Although, I also donāt want the legislation to be to extreme, such as the SEC in the US. I only found out today that to open an FX account with IB requires a non-US client a minimum deposit of $10K, which is all good and dandy. But, for a US client it will cost them a minimum of $10M (in assets), yes TEN MILLION DOLLARS. IB (Interactive Brokers) is one of highest regarded retail brokers in the world, so this type of legislation speaks volumes.
