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ESMA and its implication

StanfordB
Jun 22 2018 at 09:09
posts 10
I hadn't thought about it that way before. I was all in favour of a max limit of 1:50 but you are right it just means that people will put larger deposits in their account (which they will eventually lose)
FxMasterGuru (FxMasterGuru)
Jun 22 2018 at 10:44
posts 1608
In my opinion the majority of retail traders will move to 1:400 leverage Australian or off-shore brokers instead of increasing their margin 10x(!) and staying with their current EU-CRIPPLED brokers.

Partly, because it is much easier and partly because IF they had 10x more risk capital they would have ALREADY been trading with those funds.
Please click "Vouch" if you liked my post. If not, just put me on your Blocked list. :o)
vontogr (togr)
Jun 24 2018 at 07:01
posts 4862
Yes I am with this Australian broker https://goo.gl/4fBquG
 and the conditions are the best.
NottsBlade
Jun 24 2018 at 07:04
posts 75
Today I mastered how to trade the news and ESMA and the likes are trying to stop me from trading by limiting the amount of leverage I can use. They want to stop me from making a living from something I enjoy. I have spent several years learning everything I can about TA. Why should small traders like myself who have spent years learning be penalised. It's unfair! Today I traded USDCAD and in seconds I had made over £200 from my £100. This is a Trillion $ market and my opinion they want to keep it in the hands of the few!!!


It's not so much about the profit it's about how I had it all set up, the technical analysis etc!!! I didn't trade it perfectly but it's early days!!!

…..and I'm a manual trader, I'm not using robots or algorithms etc!!!
MicF
Jun 24 2018 at 07:14
posts 95
True!
I heard already from some broker, they are building an Australian branch.

But then, not the same safety for a retail client.
Makes it worse for them.
NottsBlade
Jun 24 2018 at 07:15
posts 75
I might be wrong but this is the kind of practice regulatory bodies should be looking into. I'm no Elliott Wave expert, but I thought this was a, b, c and then USD would go up and take out 15 minute parabolic. Not only that it's supported by the 50 smooth ma on 15, 30 and 1hr charts and yet it spiked down. Seen this done so many times when price has done the exact opposite despite the support of technical indicators!!!


Somebody tell me I'm wrong.....


MyNewBank
Jun 25 2018 at 11:55
posts 15
If technical indicators were right every time then we would all make money from Forex. I guess in the case above the fundamental was not behind the move
vontogr (togr)
Jun 26 2018 at 06:33
posts 4862
MyNewBank posted:
If technical indicators were right every time then we would all make money from Forex. I guess in the case above the fundamental was not behind the move

TA do work, @NottsBlade you should learn hot to use them
NottsBlade
Jun 26 2018 at 08:51
posts 75
Wouldn't surprise me if brokers have algorithms set up to trade against their clients (Stop Loss Hunters). Stop smaller clients out first cos their the easiest to stop out cos they have lower equity. See using robots against humans already!!!

That's why I don't use a stop loss, once my £100 has gone that's it!!!

Mackiveki
Jun 26 2018 at 10:31
posts 8
I doubt that will take long! Something like 98% of traders lose their first deposit
vontogr (togr)
Jun 26 2018 at 11:16
posts 4862
NottsBlade posted:
Wouldn't surprise me if brokers have algorithms set up to trade against their clients (Stop Loss Hunters). Stop smaller clients out first cos their the easiest to stop out cos they have lower equity. See using robots against humans already!!!

That's why I don't use a stop loss, once my £100 has gone that's it!!!

Pls stop spamming my discussion
Tiffany (TiffanyK)
Jul 04 2018 at 06:23
posts 427
FxMasterGuru posted:
@TiffanyK

You are right, trading can be a socially more acceptable disguised gambling addiction. A friend of mine has committed suicide due to trading related losses and threats from loan sharks. It was pretty sad. Nevertheless, ESMA regulations will be easily bypassed by traders with addiction problems, i.e. by those who feel the irresistible urge to trade/gamble with funds they cannot afford to lose simply by moving their accounts to ASIC regulated or off-shore brokers. It is simple as that.

So what will the ESMA regulations achieve finally in this regard...? Seriously... My guess is that it is just a symbolic act, so they can ''wash their hands'' as Pontius Pilate did according to the Bible...
So sorry to hear this... really sad indeed
Accept the loss as experience
Tiffany (TiffanyK)
Jul 04 2018 at 06:34
posts 427
MicF posted:
Do you think, this would help small players?
If this would be the objective, then they had to kill margin accounts for retail.

But how could anybody prevent mortgage a house to trade?
At least they have a house to mortgage? ;-)


No, I don't think that this will help them. I think that it will rather make them quit trading... well at least the reasonable ones that are acquainted with the fact that low leverage requests more funds to deposit... I think many of retail players may just quit trading after these changes. Maybe 'Defending' wasn't the good word for what I meant :)
Accept the loss as experience
Tiffany (TiffanyK)
Jul 04 2018 at 06:36
posts 427
togr posted:

Well to be able to trade they will need to deposit much more now compared to high leverage.
Even to trade 1 lot EURUSD you will need 100,000 EUR /30 = 3,333 EUR. Just to cover margin...
And potentially loose it as well
So at the end they will loose more
That is the danger of low leverage.

That's the point, according to me ESMA is trying to limit small players from trading in these conditions, I think the final effect that they want to achieve is rather to make small players quit the 'game' (if I may say it roughly) Maybe it is much more complicated than we all think
Accept the loss as experience
vontogr (togr)
Jul 18 2018 at 14:16
posts 4862
ESMA is about to start end JUL/beg AUG
Are you ready for that?
There are still regulated brokers not crippled by ESMA
like this one https://goo.gl/4fBquG
Pipperidge
Jul 19 2018 at 06:02
posts 13
@togr
wrong. If you're an European trader you'll have no choice but to register with their EU branch, which means that you will be affected.
The difference is that they'll still provide higher leverage to their other markets/clients outside of the EU.

At the moment, the way I see it - opening an account with a broker in Switzerland (they are not in the European Union) is perhaps the least painful option.
Or fund your account. Which may not be a big issue for people who trade with lower leverages atm (x50-x100) but for ones with >x100 it's a good option. Especially, if you trade with larger lots.
Or apply for a professional trader account. = Losing the negative balance protection and a lot other perks of the retail account
Or going to an unregulated broker.
Or to stop trading because you don't have the equity to fund your account for the lower leverage.

Either way, all the new changes will cause more harm for the small traders than good.
MicF
Jul 19 2018 at 07:01
posts 95
If your stop loss isn't below the initial margin you should be fine.
MicF
Jul 19 2018 at 07:01
posts 95
IC Markets ... Australia regulated.
Yeah, not a bad idea.
Adribaasmet
Jul 19 2018 at 07:59
posts 994
MicF posted:
True!
I heard already from some broker, they are building an Australian branch.

But then, not the same safety for a retail client.
Makes it worse for them.

That’s really unfortunate; I have also heard this kind of statement from many traders!
vontogr (togr)
Jul 19 2018 at 10:04
posts 4862
Pipperidge posted:
@togr
wrong. If you're an European trader you'll have no choice but to register with their EU branch, which means that you will be affected.
The difference is that they'll still provide higher leverage to their other markets/clients outside of the EU.

At the moment, the way I see it - opening an account with a broker in Switzerland (they are not in the European Union) is perhaps the least painful option.
Or fund your account. Which may not be a big issue for people who trade with lower leverages atm (x50-x100) but for ones with >x100 it's a good option. Especially, if you trade with larger lots.
Or apply for a professional trader account. = Losing the negative balance protection and a lot other perks of the retail account
Or going to an unregulated broker.
Or to stop trading because you don't have the equity to fund your account for the lower leverage.

Either way, all the new changes will cause more harm for the small traders than good.

I do trade with that broker. I am in EU yet I have all the advantages not affected by ESMA.
How that come you know that better than me when I trade with them every day?
LOL
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