For many years, generous amounts of leverage have been an attractive aspect of the Forex market. They have provided a lot of profit potential for winning trades, but also increase risk when those same trades go south.
Ok ESMA is here. But is it here to stay? What do you guys and gals think?
Click here to read our full article on the New ESMA regulations in Forex & how to avoid them.
I hope you enjoy it! Happy trading.
Interestng - You’re from Canada - the most “Regulated” part of the world ?
Then you say
“…Been a Forex hobbyist for over 10 years and also the creator of ForexRank The Forex market has also interested me and I am still very much involved with Forex trading, broker reviews and other things related to Forex. …”
Now yu come up with this input - I’ve neither praise nor criticism atm !
What are you recommending here ?
Well if someone is looking for more information on ESMA the link may be helpful.
Not sure what you are implying with your comment.
I’m not recommending anything. Just to stir up some talk on the new ESMA regulations.
Oh ok then - I thought you had something to say !
Stir away ! 
IG Group (UK) is planning to offer retail forex clients in the EU an option for escaping the extreme restrictions being imposed by ESMA.
Here is an excerpt from a Finance Magnates article published on Tuesday:
"For those poor plebeians, unable to meet the requirements needed to reclassify as a professional, there is hope yet. IG Group will enable them to contract with their other entities, outside of the European Union, which aren’t subject to those pesky ESMA rules."
Here’s a LINK to the article.
Denmark announced that it will also ban the sale of binary options to retail customers, pointing out that such instruments are too complex and risky for inexperienced traders.
The step follows similar moves by other European countries like the UK and Austria following ESMA’s ban.
That was a temporary ban from ESMA. Moreover, the ban is not effective right now. The extended time has been over on 1st June 2019.
Wait, didn’t they extend it again? Is it over then?
The Central Bank of Ireland (CBI), which also serves as a financial services regulator, announced its plans to make ESMA’s product intervention measures permanent. These include a ban on binary options and a set of restrictions for CFD trades, the most important of which is a cap on leverage of up to 1:30.
I am actually surprised they hadn’t done it by now.
ESMA is trying to protect EU market from many scammers and naive investors. For experienced traders these rules must be very boring and inefficient, but for new and inexperienced traders they might be very beneficial. Just think about trading BO with some experience – it could lead to 100% loss
We need to remember that ESMA is charged with protection of the stability of the financial sector in the EU. It is not primarily a consumer-protection organisation.
How to see something like that in reality ? Are they already applied ? I have read something about some Australian broker, is it that same regulations or something really new here and completely ? I simply do not get anything at all of all that.
I know ESMA was flatout earlier this year trying to protect the retail traders from themselves… The usual regulator play going after the low hanging fruit… that won’t put up much of a fight…
And protecting the stability of the EU’s Financial sector is their prime directive…
Where were they when this monumental fustercluck was being orchestrated… It could bring the EU to its knees… I know I’d sleep better in the knowledge that my EU based Broker has hold of more of my unsecured deposited capital… a byproduct of their low leverage regulation… Think about it for a while…
ESMA decided to warn brokers not to circumvent its product intervention measures.
The EU’s securities markets’ regulator said it is aware that some brokerages are advertising to retail clients the possibility to become professional client on request, which includes certain trading incentives, as well as providing higher leverage levels.
ESMA also said it is also aware that some CFD providers established in the EU are offering their clients to move their accounts to an intra-group third-country entity. The Pan-European regulator warned brokerages that third-country firms are only allowed to provide services to EU investors at the client’s own exclusive initiative.