Let us stick to the topic! So how did ESMA affect your trading? I had for example move my stb account to different broker to keep it making profit while Maxik account is doing well even on 1:30 leverage.
togr posted: Let us stick to the topic! So how did ESMA affect your trading? I had for example move my stb account to different broker to keep it making profit while Maxik account is doing well even on 1:30 leverage.
I am a small investor who is happy with present regulation. Don't understand why ESMA wants to change it. Proposals for new rules are more confusing, unfair and will not benefit anyone.
voketexpert posted: I am a small investor who is happy with present regulation. Don't understand why ESMA wants to change it. Proposals for new rules are more confusing, unfair and will not benefit anyone.
We've discussed this already. It is of benefit for the big (MM/DD) brokers. Other than that - the traders and small STP brokers are getting shafted.
Please explain me why it is no longer possible to make big $ out of a small trading account. If the leverage is around 1:30, and the true leverage is, say, 10 and the risk per trade is 5%, it takes a couple of years to gain $20´000. Let´s imagine that in the beginning the monthly gain is 20% and in the end it will be 10%, which allows a modest standard of living even in Europe. One should deposit a couple of hundred of bucks, and know what one is doing. Of course things take time.. ESMA is a nuisance, but I don't see it as such a big obstacle UNLESS somebody explains me exactly why. Is that so heavily dependent on strategy used?
Anybody thinking they can open an account with £100 or a £1000 and think that they can make a living from FOREX under the new leverage restrictions is dreaming. Got more chance of making money just turning your computer off and saving money on electricity!!!
Said it before, it can no longer be considered as trading unless you're one of the few, unless you're a millionaire already!!! Probably better off just investing in some shares!!!
These leverage restrictions imposed by ESMA and other regulatory bodies - Japan & US are a breach of Equal Opportunities and Class Discrimination.
TRILLIONS OF $'S exchanges hands daily and basically these regulatory bodies are saying that there's not enough to go around, basically they want to keep it in the hands of the few. Furthermore, these leverage restrictions are upside down, it should be lower leverage restrictions for the big players e.g. High Frequency Traders, Hedge Funds, and Millionaires etc. The reason being it would provide STABILITY in the financial markets.
XTX Markets turns over billions each day - $150bn Daily volume across asset classes with just 97 employees. This is the way things are going in the real world with the rise of algorithms, HFT and automation. The livelihoods and wellbeing of people are being sacrificed for the sake of automation and to cut costs. Think about it, robots don't answer back, they don't need sick leave and they don't need holidays, but best of all they don't need paying.
Instead of moving forward the world is sleepwalking to disaster and if anything it's just a repeat of the Victorian Era where the few prospered and the masses ate cake!!!
That's where we're heading, might not be in my lifetime but that's where it's heading!!!
Forget about Daily Volumes it's just algorithms since they account for approx. 70% or more of the market!!!
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