Pan-European financial regulator ESMA’s plans to severely restrict the online trading business in Europe, if implemented, will have far-reaching effects for traders and brokers alike.
ESMA’s proposals include:
- 30x leverage cap on Forex and CFD trading
- ban on ‘bonus’ payments to retail traders
- ban on Binary Options trading
- required negative balance protection for retail clients
Do you agree with ESMA’s proposals? Disagree?
Well, LET YOUR VOICE BE HEARD!
LeapRate’s survey results on ESMA’s proposals will be collected and sent – in aggregate form only – to ESMA prior to their closing of public consultation on the matter. We will also publish summary results and (anonymous, of course) opinions voiced by our audience on the matter.
Some of our survey responses to date include some interesting commentary as well as some alternative ideas for regulators to consider:
A leverage cap is harmful for traders because traders need to deposit more funds to their broker. So more money is at risk…
Better than leverage cap would be obligatory hard loss limits, e.g. 20% account loss in 1 day would trigger a cool down period for 24h…
Capping the leverage will only transfer clients to more shady assets and/or places out of reach for ESMA…
About time…
Harmful as many traders will shift to unregulated offshore based brokers…
ESMA proposal is harmful for experienced traders…
I don’t need a Nanny!
I would prefer it to be 30x per currency pair, for a total Limit of 200x leverage. It messes things up for day trader who trades multiple currency pairs. 30x leverage is fine if trading only one currency pair…
These restrictions will definitely hurt the industry as a whole. (Maybe this is the goal?)
You can complete our ESMA proposal survey here.