FCA Propose Changes to CFDs

[Caseynotes]

FCA outlines proposals for stricter rules for CFDs

 

http://www.leaprate.com/2016/12/fca-imposes-leverage-cap-and-tighter-rules-for-cfds/

 



[Caseynotes]

Interesting share price reaction of the big brokers but as Leaprate point out, they are not the problem.

 

http://www.leaprate.com/2016/12/fca-bonus-ban-and-leverage-cap-sends-ig-cmc-and-plus500-shares-diving-26-30/

 



[Guest DanC]

Hi 

 

You can find our response to the FCA Consultation Paper on our group website here.

 

Dan

[Caseynotes]

IG responds, rightly highlighting overseas based companies.

 

http://www.iggroup.com/investor-relations/regulatory-news-service/response-fca-consultation-paper?CHID=9&REF=IG&SM=TW

 



[Caseynotes]

Plus500 responds, will have a material impact on Plus500 UK subsidiary.

 

http://www.leaprate.com/2016/12/plus500-on-fca-leverage-and-bonus-directives-will-have-a-material-impact/

 

 

[Caseynotes]

Industry responds to proposed FCA changes.

 

 

http://www.financemagnates.com/forex/brokers/exclusive-industry-responds-fcas-proposed-changes-forex-cfds-firms/?utm_content=bufferb90d6&utm_medium=social&utm_source=twitter.com&utm_campaign=buffer

 



[Caseynotes]

Big brokers share price hit seems mainly centred on the on the data that most lose playing the forex (rather than the decreasing of leverage) but this is not really news, minimal research would have disclosed this to any newbie. That is why, repeated over and over on the forum is stressed the need for tight risk management, low leverage and to just concentrate on survival for the first few years.

 

Not what anyone wants to hear. They prefer ‘with a bit of luck I can get rich quick’ scenario. But luck doesn’t come into it if you are going to be making hundreds of trades over a long period of time, probability is the play, not luck. Reading ‘Spread betting for Dummies’ over the weekend then steaming in with big leverage will probably put you in the 80% who lose. Those instagram and myfxbook posts showing massive percentage gains per trade must mean they are using massive leverage, they cannot withstand even a small string of losers, unless it’s a demo account, then they just reset.

 

Big broker share price should bounce, not a dead cat bounce because the big brokers will pick up business from the small firms who will be hit the hardest.

 

http://www.leaprate.com/2016/12/forex-and-cfd-brokers-shed-more-than-2-billion-in-market-value-on-fca-tuesday/

 

 

[donaldprice]

Absolutely Casey, if the media, or places like CNBC or Bloomberg try to say to the novice investor that somehow stocks and share are a safer "bet" just look at the chinese crash back in 2015 and its mining shares, i myself had diversified my portfolio, but still had some terrible under performers, but that is how it goes but i understood my product. With leverage derivatives you must understand the product and use very good risk management, therefore not placing such huge positions with a small account and if you where using a long only position of a particular stock, dont put all your eggs in one basket, not much different.

I am not a fan of regulation, but if this benefits clients and the industry together then i think the majority will be glad. 

[Caseynotes]

Good article here, trading realities and what to do about it.

 

https://www.theforexguy.com/forex-traders-lose-money/

 



[Caseynotes]

IG limited risk accounts for Germany as German regulator makes new recommendations for industry

 

http://www.leaprate.com/2016/12/ig-group-issues-statement-on-bafins-cfd-rule-changes/

 



[bapu1]

HAS ANY ONE GOT CFD IN MINING ON SHORT POSITONS ?

MAY HAVE TO WAIT A WHILE TO GET IN BLUE