Leverage Capped

Just seen that Admiral capping leverage end of this month for retail traders to 1:30
But the bigger players still get 1:500
looks like if i want to make decent money in the markets i need to be Rich in the first place.
Big players cost for 1 lot = about £200 + spread etc
ME …cost to buy 1 lot = over £3000 + spread etc.


Just when you think the whole thing is rigged anyway But you still have a good enough system to still make money, they do this… Absolute F***ng JOKE

you’ve rather missed the point, it seems

it’s not directly to do with your account size

this is a legal, regulatory change affecting all brokers who are regulated in Europe

as from the end of this month, leverage is limited to 1:30, to protect inexperienced traders who live in dream worlds in which ridiculously high leverage is routinely offered by scammy counterparty market-makers claiming to be “brokers”, to speed up the rate at which they can empty the accounts of customers naive enough to imagine that very high leverage is a sane or sensible way to trade

the “discrimination”, if any, is against big institutional accounts: they don’t have leverage available at all

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Those who choose to (and can) retain the higher leverage are classed as professional traders and not retail traders. This means they also forfeit some of the protective privileges that the new ESMA rules afford to the smaller, more vulnerable, traders that are officially classified as retail traders.

The new leverage rules which will require, for example, a margin of around 33 dollars for one EU microlot, is going to drive a lot of small time traders out of the sandpit - and that is a very good thing…

So is there only 1 type of Trader allowed to make money "The Rich"
And the “poor” small time trader not welcome.?


I may have miss understood !
So i can still use 1:500 if i deposit £1000
and/ or agree’d with broker ?

or not

The small time trader has always been welcome but, as so many threads here on BP testify, they mostly do NOT make money - whatever leverage they are given. If they did then maybe we would not be faced with these harsh universal restrictions.

I would far rather have seen restrictions imposed concerning minimum requirements for education, training, experiences, abilities, and even a compulsory period of profitable trading on demo before being permitted to trade live… But that would be too restrictive for the broker community.

I fully agree that it is a shame that there are different levels of market opportunities but when even fools can, and are heavily encouraged to, trade without any knowledge of what they are doing, then it is of little surprise that the authorities step in to protect those who are too dumb, and/or lazy to look after themselves. The broker community itself is primarily to blame for encouraging and taking advantage of such people.

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Yeah seems a bit unfair though because these people are just going to go to real shady brokers or use more money to carry on losing…?
doesn’t;t Really make sense to me.

not if they’re regulated in Europe

many traders will try to avoid this by switching to non-European regulated (i.e. mostly “worse regulated”) brokers

so it’s counterproductive and stupid, in one way: the customers whom the regulators are trying to protect will actually be exposed to greater risks as a result of this

(you might look at Pepperstone, in Australia - i hear they’re quite good and quite safe)

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Admiral Markets but its not based in UK, but i’m in England i also have Pepperstone

Both of these FCA Regulated so…not sure

Just register as a professional trader if you insist on keeping the higher leverage.
Or just add some quid to your account. If you’ve been trading for a while and still don’t have the equity to continue trading once the new regulations are applied maybe trading is not for you?
Should take good hard look at your trading style and profitability…

I fully agree with you… And i think most other traders do too. It is unfair on those victims and it is unfair pressure on those brokers who do actually operate professionally and do try to work with their clients to their mutual benefit (there are some… :slight_smile: ) )

I think registering as a professional trader requires more than a “request” and a few bucks more in one’s account.

You may have to show, for example, a proven high volume of business or demonstrate a high-worth portfolio ownership or have professional, institutional experience, etc.

You may also find that benefits such as negative equity protection and automatic
margin close-out levels do not apply to you.

To have professional trader status you need to be, well, a professional…………

But it is a pity that the well- intended aims of such imposed changes will not be achieved as long as there are non-regulated brokers offering an alternative.

I meant to add more cash to his retail account.

And yes, there are some requirements to become a “pro” trading account user.
Not sure what exactly are they and if they can be amended by the broker. Have to take a look into that.

Yes, i understood that, but I think for the small accounts, say 100-1000, you would need considerably more than most could afford to add. That is yet another factor which will draw these small retail traders to non-EU brokers because it is either that or trading for a long, long time with a max position size of about 1 to 5 microlots………:sleeping:

But it is interesting how we have got used to being overly privileged in the financial markets. Afterall, one should not sneer at being able to trade with some 5000 dollars worth of currency, which we don’t actually possess, at near- interbank spreads, with instant access and with no commissions or other charges, and a free platform and training assistance! It is still a pretty remarkable deal………… :smiley:

I dont see why i should have to be penalised for not bieng an idiot.

I want to leverage my £1000 by 500 and make more money than i would if i leveraged it by 30
Now im not able to do that instead to make the same money
i need to increase my 1000 wich is all i would want to risk in ny broker at any one tine to over 10000 which is way out my reach. Its totaly wrong and unjust this country and the people who run it are the biggest scamners in all of this.
Think im going back to The Dark Side with the russians… ,

My spreadbetting firm, also caught by the ESMA leverage rules, says to be classed as a pro for their services, I need to demonstrate a portfolio of not less than £500k in financial instruments of some sort or another. That makes it a non-starter for me.

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That is precisely the injustice in such a blanket ruling. And why i would have much preferred an entry qualification instead. It surely would not have been too difficult to demand in the broker compliance requirements for new clients some kind of understanding test and say a 3-month demo test.
It addition, a traders max leverage could be reduced/increased on a scale according to their performance - similar to the no claims bonus with car insurance?

Absolute shambles there has got to be more to this than saving dummies from losing all ther money.
And can only come to the conclusion its to stop the ordinary person from naking money only the richest can do it now. Is a margin call and stop out level not enough ? Inagine if they told bookies that people are loosing too much so they can only let the wealthy ones play.
Its a disgrace. I think the brokers should strike.:alien:.lol


Im thinking of starting my own brokerage.

On the moon they cant touch me then.:alien:


Well, errr, actually, you might find you’re bound by the Outer Space Treaty of 1967. Believe it or not, there is even some law on the moon.