ASIC leverage down

Hi guys,

I got message from multiple Australian brokers.

They are going to cripple leverage the same way ESMA did.

So decrease to 1:30.

What are you going to do?

Ouch.
To be honest, I never had any complaint in doing leverage. I like to stick with lower lever leverage.

If you have 2 years of experience, you can then avail leverage 4-500 with some brokers. They call it professional account.

But not only that...

I don’t really mind using a lower leverage and it just might work for you. Good luck.

it should not have much effect. but obviously one has the option to move to an offshore entity.

Gracewilson1995 posted:
If you have 2 years of experience, you can then avail leverage 4-500 with some brokers. They call it professional account.

Yeah i checked with fxview they have 500x for professionals but that is not for retailers at all. i think its time to get used to 30x or move to offshores.

Hi, if you are not based in Australia, you might consider Global Prime.

I recently spent quite a lot of time searching for a non-ESMA broker that offered bit more than 30:1, but at same time not a bucket shop, and analysing using the excellent Myfxbook tools for looking at spreads and swaps. Filtered down to a short list that looked decent but also offered higher leverage, which basically left me with a few ASIC brokers. Opened some demos. Having read reviews at forexpeacearmy and experiencing their support, I went with Global Prime. Had no idea ASIC was following ESMA, but fortunately as an overseas customer covered by a different license, leverage will stay at 100:1. I think you can apply for 200:1 but they deliberately don't go above that because it leads to blow ups.

The other broker I used to use a bit that is higher than ESMA is Dukascopy Swiss (NOT Dukascopy Europe) - with MT4 their leverage is 100:1, higher with their jForex platform, but there is reduction in leverage over the weekend so need to be careful if you are holding positions.

It doesn’t matter to me much because I prefer trading with low leverage. I find it very risky to use high leverage.

Justin990 posted:
Any idea on how much ASIC has restricted the leverage down to?

The ASIC has restricted leverage to 30:1 for the major currency pairs and 20:1 for minor currency pairs. These regulations will affect the people trading in CFDs and not the regular forex traders. We have to understand that there is a difference between regular trading and leverage CFD trading. If you are simply trading currency pairs then these regulations will not affect you as a trader.

Going offshore seems to be the best thing to do now!

Harshalgibbs posted:

Gareylinn509 posted:
Going offshore seems to be the best thing to do now!

Yeah, glad I am already there. After being finicky about it for so many years I finally got going with offshore brokers.

I am yet to get on that bandwagon but very serious on opening 1 demo account with any 1 offshore broker and test them out for myself now.

Yea, for complete newbies its best to start with some high regulated broker like NFA, ASIC, or FCA. Stay away from brokers with multiple regulators, stay away from tax havens, and stay away from offshore brokers. Those who have more experience can consider some of the offshore brokers, which at the end of the day, only those with experience should be trading with higher leverage.

Gareylinn509 posted:

Harshalgibbs posted:

Gareylinn509 posted:
Going offshore seems to be the best thing to do now!

Yeah, glad I am already there. After being finicky about it for so many years I finally got going with offshore brokers.

I am yet to get on that bandwagon but very serious on opening 1 demo account with any 1 offshore broker and test them out for myself now.

In my opinion as long as a broker is regulated it doesn’t matter where it’s headquartered. If it’s giving you the trading conditions you require, then just go for it. I am a full time scalper and for me low spreads mean everything in trading. 0 pips spreads and low commission rates of forex4you and fxview suit me well.

Harshalgibbs posted:

Gareylinn509 posted:

Harshalgibbs posted:

Gareylinn509 posted:
Going offshore seems to be the best thing to do now!

Yeah, glad I am already there. After being finicky about it for so many years I finally got going with offshore brokers.

I am yet to get on that bandwagon but very serious on opening 1 demo account with any 1 offshore broker and test them out for myself now.

Yup! Demo is the way to check things out.

I get ya :)

togr posted:
Hi guys,

I got message from multiple Australian brokers.

They are going to cripple leverage the same way ESMA did.

So decrease to 1:30.

What are you going to do?

Changing the broker.

Leverage protects so it is very important to always choose the right leverage.

Leverage plays an important role in the life of a trader and sometimes a higher leverage can get really good profit.

epeepillock posted:
Leverage plays an important role in the life of a trader and sometimes a higher leverage can get really good profit.

High leverage is dangerous especially for new traders. So, use it with extreme caution.