ESMA and its implication

emotionaltrader posted:
ESMA and other regulatory bodies should bring back the old system of Leverage and introduce 20% tax or whatever on all WINNING trades. In my opinion this would create a much fairer system benefiting everybody!!!

Looks like you are from the Trump team

taxes and sanctions it's the best that you dream

sorry but I prefeare spend money that I winn by my self that to give money for governement for politics be more rich and pay unecessary functionaires just to be reelected !!!

Vote for me it will change nothing for you but he will change a lot for me !!!

( I know a man who win 1 Million dollar per day, you know how ? just a cousin of past president)

If I was a small retail trader and I knew that I was capable of making £400 a day or more then I would rather pay TAX on my WINNINGS at a higher leverage than trade at these pathetic low leverages that have been introduced by ESMA and other regulators. Furthermore if your income doesn't meet the tax threshold for the year you can claim it back.

If you don't want to pay tax, you don't trade, simple as that.

DO NOT BE FOOLED BY THOSE OUT THERE PROMISING RICHES FROM TRADING!!!

Introduction of lower leverages by ESMA and other regulatory bodies means it's no longer possible for someone starting out with a small amount of capital to attain the dizzy heights that others have.

Think about it you now need £500,000 to be considered as a PROFESSIONAL TRADER and to have access to higher leverages, basically we have all been shut out of the market by the few.

The game has changed for the masses - it's no longer a FREE MARKET!!!

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:
Maxik account is doing well

Profit - 44.25% DD - 7.48%
You call that well? It's more than well, IMHO.

Pipperidge posted:

togr posted:
Maxik account is doing well

Profit - 44.25% DD - 7.48%
You call that well? It's more than well, IMHO.

so far so good
the con does not trade often so I need to trade for a year to get good base of trades

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?

I should have added something:
Maybe, just maybe, people have unrealistic expectations what is doable?

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!!!

niceGLer posted:
I should have added something:
Maybe, just maybe, people have unrealistic expectations what is doable?

being long term trader is what it is my friend.

voketexpert posted:

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.

Exactly. There is the only winner - offshore brokers - whose can take our capital and disappear now.

niceGLer posted:
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?

You have no idea what are you talking about.
20% a month for years with 1:30 leverage is pure nonsense.

All ESMA have done with the introduction of these leverage restrictions is create a two tier market with one set of regulations for one group and another set of regulations for the other. The market is more favourable towards the few rather than the many which basically means it's not a market at all!!!

niceGLer you're dreaming if you think that you can make a living from trading a few hundred quid on these leverages. Like I said you've got more chance of making money by switching off your computer and saving money on the electricity @ 0.20 -0.30 KWh!!!

emotionaltrader a moment ago
….furthermore the Daily Standing Charge for electricity is £1.80 - £2.90!!! Seriously, you'll make more money just by switching off your computer than you'll make trading £1000 at 1:30 Leverage. Better off investing in Penny Shares!!!

Oops - £100

Let's get this into perspective. Before the leverage changes I was capable of turning £100 into £400 in a day, I was capable of turning £100 into a £1000 in a week which I did on 4/5 occasions.

Now at 30:1 leverage I've got more chance of making money by turning of my computer and saving money on the electricity!!!

Electricity unit rate: 17.25p per kWh
Daily standing charge: 18.90p per day


Like I said: There's more excitement watching the grass grow outside my window or watching paint dry.

That's what ESMA have achieved One rule for the rich and another for everybody else!!!