This whole ESMA regulation will simply fire backwards and REALLY BADLY, as it will only push retail traders to sign up with unregulated off-shore brokers who will be very happy to provide not only 1:400, but 1:500 or even 1:1000 leverage because their clients will never see their funds again anyway... But of course, it will not be the problem of the EU anymore.
Personally, I was a victim of a New Zealand registered and 'regulated' broker who had offered the BEST conditions, the BEST leverage (even 1:1000), the BEST EVER no-slippage ('in-house') executions, then after collecting $500k+(!) client funds the owner has simply closed shop and disappeared... Including his broker website... Even though he was indicted by the Canadian authorities (he is an Iranian-Canadin citizen) the $500k+ clients funds have never been recovered.
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