ESMA and CySEC Suggests Bonus Ban

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ESMA and CySEC Suggests Bonus Ban

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Re: ESMA bans binary options, sets restrictions on CFDs for retail clients

Re: ESMA bans binary options, sets restrictions on CFDs for retail clients

Re: ESMA bans binary options, sets restrictions on CFDs for retail clients

Re: ESMA bans binary options, sets restrictions on CFDs for retail clients

ESMA adopts final restrictions for BO and CFDs offering:
https://www.esma.europa.eu/press-news/e . ry-options

Basically after July 02 – BO offering should be stopped in the EU, while CFDs restrictions over leverage should be placed starting for August 02.
Initial period would be 3 months and ESMA may increase the period if needed.
So I believe we would monitor interesting behavior among Brokers during coming months in attempt to hold more clients

New ESMA Regulations In Forex & How to Avoid Them

Are you confused about the whole ESMA changes that apply to Forex trading? Do you want to avoid the changes altogether?

ESMA was designed to keep traders like yourself safer and reduce your risk in the market while trading, so the new ESMA rules are a good thing right!?

Overall and for the long term, yes they are. But there are traders that may find these rules too “tough” and that they will interfere with the way they trade, with leverages of 1:500 being the norm, now going down to 1:30, its a sudden and huge decrease. We have compiled two lists to guide you through ESMA:

  • Brokers that the new ESMA will apply to.
  • Brokers that the new ESMA rules will NOT apply to.

There is also more in-depth information on ESMA and tips on the new regulations down below!

For Even more Information on ESMA and FAQ’s

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.

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A trend is emerging among the regulatory agencies that govern the Forex markets around the world. Under the guise of stabilizing the retail Forex and CFD markets, many agencies are beginning to implement limits on the amount of leverage that can be offered to clients, as well as other restrictions.

What is ESMA?

ESMA is an independent EU Authority that contributes to safeguarding the stability of the European Union’s financial system by enhancing the protection of investors and promoting stable and orderly financial markets.

How Can I Avoid ESMA Regulations?

Trade with a broker that is not regulated under any regulator that falls under the EU ( European Union). See our list below…

Another way to avoid ESMA regulations is to qualify as an “Professional Client”

Professional Clients must meet at least 2 out of 3 criteria below to qualify as a Professional Client:

  • Placed at least 10 CFD or Forex trades of a significant size on average per quarter in the last year.
  • Investment portfolio of cash and financial instruments over of 500,000 EUR.
  • Do you or have you worked in the financial sector for at least 1 year professionally.

What Are The New ESMA Rules?

ESMA has agreed on measures in relation to CFDs. The measures restrict the marketing, distribution or sale of CFDs to retail investors, by providing the following protections:

Leverage limits between 30:1 and 2:1, which vary according to the asset being traded:

30:1 for major currency pairs
20:1 for non-major currency pairs, gold
10:1 for commodities excluding gold
5:1 for individual equities
2:1 for cryptocurrencies

  • Margin close-out rule.
  • Negative balance protection for clients
  • Prohibit any Incentive programs ie – Bonuses
  • Standardized risk warnings

WIll ESMA Rules Apply to Me?

If you Live in a country that falls under the EEA (European Economic Area) and the broker you are with is regulated within the European Union, then yes, the rules will apply to you.

EEA Countries:

Austria, Belgium, Bulgaria, Croatia, Cyprus, Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Iceland, Ireland, Italy, Latvia, Liechtenstein, Lithuania, Luxembourg, Malta, Netherlands, Norway, Poland, Portugal, Romania, Slovakia, Slovenia, Spain, Sweden and the UK.

The rules will also apply to clients outside the EU Only if the Forex broker is solely regulated by the EU.

This means a Forex broker that is also regulated outside the EU does not have to follow ESMA regulations. Some Forex broker are regulated in several different countries.

ESMA Rules Do Apply To These Brokers

Broker Type Market Maker Non-Dealing Desk
Regulations ASIC, FCA
Min Deposit $250.00
Account Base Currency USD AUD SGD GBP EUR NZD CAD CHF JYP
Max Leverage 400:1
Trading Platforms Metatrader 4, Trade Interceptor
Broker Type Market Maker
Regulations FCA, CySec, ASIC
Min Deposit $5.00
Account Base Currency USD, EUR, GBP, JPY, CHF, AUD, RUB, PLN, HUF, SGD, ZAR
Max Leverage 888:1
Trading Platforms Metatrader 4/5, Webtrader
Broker Type Non Deal Desk (NDD)
Regulations FCA FSA
Min Deposit $25.00
Account Base Currency USD, EUR, GBP, PNL
Max Leverage 500:1
Trading Platforms Metatrader 4, Webtrader
Broker Type ECN
Regulations ASIC FCA
Min Deposit $200.00
Account Base Currency USD, AUD, EUR, GBP, CAD, JPY, NZD,CHF, SGD, HKD
Max Leverage 500:1
Trading Platforms Metatrader 4/5, cTrader, Webtrader, API Trading, MAM / PAMM

Forex Brokers That Are NOT Affected By ESMA

Broker Type ECN
Regulations IFSC
Min Deposit $100.00
Account Base Curreny USD, EUR, GBP, AUD, CAD, BITCOIN, GOLD
Max Leverage 200:1
Trading Platforms Metatrader 4/5
Broker Type ECN
Regulations ASIC
Min Deposit $200.00
Account Base Currency USD, AUD, EUR, GBP, CAD, JPY, NZD,CHF, SGD, HKD
Max Leverage 500:1
Trading Platforms Metatrader 4/5, cTrader, Webtrader, API Trading, MAM / PAMM
Broker Type ECN
Regulations FSCL and FSPR
Min Deposit $200.00
Account Base Currency USD EUR GBP AUD NZD SGD CAD JYP ZAR
Max Leverage 500:1
Trading Platforms Metatrader 4
Broker Type ECN
Regulations AFSL
Min Deposit $500.00
Account Base Currency USD, AUD, CAD, SGD, GBP, EUR
Max Leverage 1:100 leverage and up to 1:200 (pending approval)
Trading Platforms Metatrader 4
Broker Type ECN
Regulations ASIC
Min Deposit $200.00 USD
Account Base Currency AUD, CAD, CHF, EUR, GBP, HKD, JPY, NZD, SGD, USD
Max Leverage 1:500
Trading Platforms IRESS, Metatrader 4 and 5, MAM, PAMM

How Does it Affects The FCA and CySec

FCA On ESMA

The Financial Conduct Authority, which governs financial markets in the UK, proposed changes to the rules that govern leverage. The response to this from firms and individuals involved in the retail Forex industry was understandably negative.

ESMA, the European Securities and Markets Authority (ESMA) launched its own inquiry into the issue. FCA subsequently responded by suspending its own, so that it might wait and see what ESMA came up with, while reserving the right to act if they felt that ESMA did not go far enough.
The FCA’s previous proposal, in December 2020, called for a 1:25 limit for CFD traders with less than 12 months experience and a 1:50 for all CFD traders. FCA is a national regulator, while the ESMA regulates financial markets throughout the European Union.

That means that FCA’s regulations are superseded by those of ESMA and the latest regulations approved by ESMA have led the FCA to become concerned, particularly with the 1:30 leverage cap on major Forex pairs. They fear that such a stiff cap will lead to accounts going offshore in search of higher leverage.

Brokers have been encouraging their clients to submit comments to ESMA and make ESMA aware of their displeasure with these limits.

ESMA and CySEC Suggests Bonus Ban

To suggest something is like recommending.

An assumption is usually based on information you have on a subject.

A guess is like an assumption, but you don’t have logical information to support it.

  • Английский (американский вариант)

Символ показывает уровень знания интересующего вас языка и вашу подготовку. Выбирая ваш уровень знания языка, вы говорите пользователям как им нужно писать, чтобы вы могли их понять.

Мне трудно понимать даже короткие ответы на данном языке.

Могу задавать простые вопросы и понимаю простые ответы.

Могу формулировать все виды общих вопросов. Понимаю ответы средней длины и сложности.

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