What the New ESMA Regulations Mean For You ❗❗

What are the new ESMA rules? PLEASE LIKE THIS VIDEO IF YOU FOUND IT USEFUL. IT HELPS A LOT. ESMA restrictions come down from the European Securities and Markets Authority, which issued a set of directives that will come in effect towards the end of July. What has exactly happened? ESMA has decided to completely overhaul the CFDs, spread betting, forex and binary options industry in the European Union.

These restrictions/limitations will impact you if you trade with an European based broker even if you live in a country outside the European Union (like Singapore or India). The restrictions will impact CFDs, spreadbets and spot forex.

As your trading strategy may be impacted, we have compiled a list of what will be changing:

- Margin increases
- Leverage decreases - a limit on the amount of leverage that can be offered to retail traders (30:1 for major currency pairs, 20:1 for non-major currency pairs, gold and major indices; 10:1 for commodities other than gold and non-major equity indices; 5:1 for individual equities and other reference values; 2:1 for cryptocurrencies)
- Margin close-out level - a 50% margin close-out rule on a per account basis.
- Negative balance protection on a per account basis.
- Preventing the use of incentives by a CFD provider.
- A firm specific risk warning delivered in a standardised way
- Binary Options will not be permitted. (prohibition on marketing, distribution, and sale of binary options).

Europe and ESMA seem to have gone overboard with the restrictions. According to the MiFIR legislative framework, these new regulations can be introduced on a three-monthly basis, with a review for possible extension prior to the end of the current time period. What will happen after these 3 months? We can only wait – if after the 3 months a compromise is reached and the restrictions are say, 50% less then nobody would notice...

Part 1: What the New ESMA Regulations Mean For You ❗❗
https://www.youtube.com/watch?v=A-DxFgjA50Y
Part 2: ESMA Toughens Margin Rules on CFDs & Forex Trading 🚨
https://www.youtube.com/watch?v=ufRPOhSsaMo

Видео What the New ESMA Regulations Mean For You ❗❗ канала UKspreadbetting