Jump to content

What do you think of the new ESMA proposals?

Recommended Posts

  • Replies 92
  • Created
  • Last Reply
Guest straddle

I have asked James (above) if it is possible to transfer to one of the IG non-EU accounts, e.g. Switzerland or Australia, but he has not yet replied. That would be preferable to opening a new account with another non-EU broker, and I would have thought also prefererred by IG.







Link to comment

Can't see how that would work - I thought you would need 100pts of ID here in Australia which would have to include a local address.  Then the funding, ie. bank.  Not sure of the setup here (for IG Markets Australia), but again assume local banks would be required, or local currency.  Otherwise you'd have an FX trade with every trade.  


Could be totally wrong, and be glad to be corrected (I was thinking of opening a UK account a year ago if I moved over to the UK - never looked into it, but assumed that what's I'd need to do).  Getting a global bank account the problem, otherwise a local one (bank) needs a local address.  


It sounds simple in theory to just relocate accounts, but somehow I don't think it is.  IG Markets has its own Australian business registration etc.... hopefully it is !  

Link to comment

I trade only two ETFs (VOO & VEU), could someone from IG let me know what the new margin rates will be for these.


Also the 50% cut off, I only ever have a maximum of 25% of my whole account margined at one time, is the new stop out rule based on overall account or on the trade ?





Link to comment


I trade only two ETFs (VOO & VEU), could someone from IG let me know what the new margin rates will be for these.


Also the 50% cut off, I only ever have a maximum of 25% of my whole account margined at one time, is the new stop out rule based on overall account or on the trade ? 

Hey  - so both VEU and VOO are currently margined at 10% for Tier 1, and this will double to 20% so you're margin required to open a position will also double. 


In regards to the later point, it will be based on the account. 

Link to comment

Hi everyone. I have been studying the markets and learning to trade with IG for about 2 years now.

And I am very ready to start to go live!

However, now it's very bad news for retail traders/spread betting????

Can someone tell me how to get around this ridiculous rule made by European silly people!!! "and I am being polite"


I hear there is an IG in Australia so can open a fresh account with them and will i still be protected like the FCA?


Not happy with these margins. It seems to me all they wanted to do was knock out Binary option scam companies which is a good thing ok. But to blanket all of us is madness, and I guess this could put IG out of business.


I look forward to my reply from the community and IG.





Link to comment

Hi ,  Firstly hold up, going live is an exciting time but the first thing you will learn is that live is not like demo. So play on the same pitch but reset every thing back to minimum because the bar has been raised, the execution of trades is not as smooth, there is slippage, there is doubt. You will rush and get in too early, you will hesitate and get in too late, the list goes on, there is still much to learn.


You want to start live by risking as little as possible (£/point size) and the increased margins make this more difficult but it must be done. The majority of losing traders go in with a £1000 account and start trading at £10/point which the literature tells you is conservative but the reality is you will make a lot of 'school boy' errors at the beginning and the account will soon disappear.


A small account size will (under ESMA rules) force you to £1/point which is not a bad idea to learn on. The problem won't come til later when (if you survive) you will realise it's hard to grow an account from such a small base.


If you are on large time frame charts with large stops the problem is worse and on a small account you may need to think about mini contracts on CFD or MT4, IG may well have to introduce them for the spread betting platform or risk losing potential new novice clients altogether. 


So the advice is to start with what and where you have practised and start small with a view to building up as you continue to learn. 

Link to comment
Guest straddle


I have asked James twice on this thread about the feasibility of transferring an IG account to IG Switzerland/Australia, but he seems unwilling/unable to answer.

Link to comment

Just looking at the IG Australia site online and there seems very little to stop you opening a CFD account there. Obviously there is no tax free spread betting so there will be multiple tax issues and there will be currency conversion issues and the regulators will have differing standards (they're not based in Queensland are they?) and there will be support problems due to the time gap, ..., but IG au claim they can open an account for 'people from most countries'. 

Link to comment

Thinking about it I can't see there to be a problem, despite my earlier post (100pts ID).  I don't really know - I guess there was no reason in the past to open one here if you lived in the EU or UK.  They would tell you straight up anyway.  The particular company is taking the risk - say if a client was to not pay up - harder to get money when they don't live in the country.  Same reason I wouldn't use a company outside Australia.  


Caseynotes is right - the tax considerations and currency factor are inconveniences.  If I ever needed the help desk (back in the days) outside regular hours I would get the UK's helpdesk so the same would apply I'd imagine for the reverse.  The regulations here are pretty much as good as what you (think you) get in the UK with the FCA.  Our legal system is historically based a lot on UK law/precedents, and so are many regulations.  The main authority is ASIC, and like the UK there is a local Financial Ombudsman too.  I am probably not the best person to represent this discussion on regulators however ....


Australia should take this seriously - or IG Australia to be more precise.  We could really capitalise seeing as there are close connections to the UK.  Half the staff here are from the UK anyway it seems.  The only thing is - will Australia copy the UK and ban/restrict the trading.  Seems like IG needs some clients to speak positively about binaries and CFDs in their defence....

Link to comment

Hi Casynotes,


Ref" to opening an account with the IG Australian site,


There are some mixed signals here, as I was told by the London office today via email I will not be able to open an account with them as I have an account with Ig London?? 


Help us?? 



Link to comment

Hi Straddle,


Funny that as I sent James a private message yesterday night; asking the same question and to shed some more light on our next move for us retail traders? still no reply?

I can only think Ig London are scared of losing their clients from the London baes, even though they are the same company, its all about targets for them.

I want to sort this out now as July will be on us very soon and one can move on and get back to trading! 


What I can't understand is this was an underwhelming majority of about 98% and that's just from IG clients saying No to these increased margins!

"Yes very happy that binary option/scam companies are finished and out of the game, but why blanket the ones that trade properly? 


A massive hit to banks like IG will be thinking ****...Please tell us what can we do to avoid changing our broker IG?



Link to comment
Guest PandaFace

Tbf it’s been 5 working days since a new EU regulation which changes a significant amount of things has come into play, and there are a **** of a lot of things to consider... I don’t think it’s even been clarified by esma if this applies to ALL positions or just new?


It would be good to know, don’t get me wrong, but they can’t just chuck out a process or answer in a few days.


When a solution which will work legally and first time comes about you’ll be far happier than a rushed answer.


Calm down.

Link to comment

Great wise words Casynotes thank you. My risk and rewards are very set in place.


I take it you did the same type of strategy start small and build up? 

He Is the thing Esma is now forcing that upon us?  And you are so right the account will take a long time to build with trades due to high margins.


I think Ig know they have lost the battle with Esma, as this would hit the company hard will they survive now?





Link to comment

Hi Rich,


I was looking at there site today. So you can say all good and safe? I did ask them to ring me today so I can set up a demo account before going live as it will take time to get used to there platform.

Are you trading with IC Markets Rich?


It's a **** shame that these margins have going to the stars I don't want to leave IG but can't do these silly margins which will be enforced upon us!



Link to comment

Hi , yes there is a difference between live and demo, demo executes quickly and cleanly with no slippage but the real world is not like that, just as it took time to get to grips with demo you will need to start again to learn the live which is why I said in the PM go back to min size to start live.


As I said, ESMA is 3 month trial and the FCA expect to be consulted before anything permanent, I would suggest to use that time learning live on minimum (which is within the esma margin) and see what developes. Then start to think about shifting to size up (if  you are still confident to do so). 

Link to comment

"Next steps ESMA intends to adopt these measures in the official languages of the EU in the coming weeks, following which ESMA will publish an official notice on its website. The measures will then be published in the Official Journal of the EU (OJ) and will start to apply one month, for binary options, and two months, for CFDs, after their publication in the OJ."


maybe wait and see whats happen before we move down under?


i wonder if it was fca that made IG change the margin calculation when using guaranteed stops?


its strange that you need a 600 margin on a 60 point guaranteed stop (dax 12 000)







Link to comment

Ok thank you,


Wow, I bet this can cause frustration when executing trades. Slippage I have not actually seen as yet? I might have seen a couple of times candles jump and leave a gap, is that slippage Casy?


As for executing this means for sell and buy? So when you are about to sell or buy, it does not do in that second?

Sorry for the questions on this but it's new to me like you say.     

Link to comment

, yes gaps are slippage but a gap might also be a single large candle. If you have a stop loss order price may jump over it with the order not being executed until the next offered price, on excitable pairs such as GBPJPY or any pair on a news event that can easily be 20 points away, yes there are guaranteed stops but are they worth it in the long run if you know what you are doing? You will only find out by doing the math.


The point being that going live is not the end of the learning curve not least because demo can't be exactly like live. 



Link to comment

, I've not used [mod edit - removed for breach of terms of service. Please see this post for more information.] yet. Was just carrying out my initial investigations and checking that someone in the UK could set up an account with them without the need to be resident in Australia or require an Australian domestic bank account. This is all fine. I looked at [mod edit - removed for breach of terms of service. Please see this post for more information.] because I know someone in Australia who recommended them so they are my initial choice for when I decide to move. Going to set up a small account with them over the next couple of weeks (ie, before July) just to check out how things work with them and then if I'm happy will move across wholesale in July, assuming ESMA go ahead with their leverage/margin changes.

Link to comment


This topic is now archived and is closed to further replies.

  • image.png

  • Posts

    • From my experience, the profitability of a crypto business can vary widely depending on several factors. First, the type of crypto business you are considering is important.
    • Soybeans Elliott Wave Analysis  Function - Trend  Mode - Impulse  Structure - Double Zigzag for (2) Position - Wave 1 of (3) Direction - Wave 1 of (3)  Details - Wave 1 of (3) broke to the downside and is now leaving the congestion area. More downside is expected especially if blue wave ‘iv’ of C of (2) is breached. Same as the previous update. Soybean prices appear to have completed a corrective structure that began in late February and could now be resuming the long-term bearish trend. In this analysis, we will also consider an alternative scenario in case the corrective bounce from late February has not yet concluded.   On the daily chart, a bearish cycle began in June 2022 at 1785. Following nearly two years of sell-off, we can identify the emerging bearish structure as a zigzag subdivided into the primary degree waves A-B-C (circled in blue). In October 2023, blue wave A ended with a diagonal at 1249’6, followed by a shallow corrective bounce for blue wave B up to 1398. Since reaching 1398 in November 2023, a bearish impulse wave (1) of blue wave C concluded at 1129 in late February 2024, where the current corrective bounce initiated. Currently, prices are in wave (2). Wave (2) completed a zigzag structure and might now be heading below 1129 for wave (3). Alternatively, there could be a corrective pullback above 1129, leading to a double zigzag rally for wave (2). Regardless of the scenario, a sell-off in the coming days seems likely. The H4 chart indicates that wave (2) completed at 1258, and prices are moving downwards in wave 1 of (3) or blue wave 'a' of X in the case of a W-X-Y higher rally for wave (2). We should see the current decline complete at least a zigzag structure towards the 1190-1170 range in the coming days. Preferably, our primary count anticipates an impulse wave decline below 1129 for wave (3).   In summary, soybean prices are poised to continue their long-term bearish trend following the completion of a corrective structure that started in late February. The daily chart shows a well-defined bearish cycle from June 2022, with the recent corrective bounce forming wave (2). The H4 chart suggests that wave (2) ended at 1258, and we are now in wave 1 of (3) or in the early stages of blue wave 'a' of X, depending on the alternative scenario. Key levels to watch are 1190-1170 for a zigzag completion and 1129 for a potential impulse wave decline. Traders should prepare for a sell-off while remaining open to the possibility of a higher corrective rally if the double zigzag scenario plays out. Technical Analyst : Sanmi Adeagbo Source : Tradinglounge.com get trial here!    
    • Gold has rallied spectacularly this year, hitting an all-time high near $2,450 in early May. The upward momentum, however, has begun to fade, with prices down more than 4% from their recent peak over the past few trading sessions. Source: Getty Images   Forex Commodities Gold Market trend Gold as an investment XAU/USD   Written by: Diego Colman | Market Analyst, New York IG Publication date: Thursday 30 May 2024 05:28 Bulls are starting to head for the exits, in search of more attractive opportunities With market dynamics realigning with fundamentals following the speculative frenzy seen during the first few months of the year, the downward correction in the precious metals space of late could continue in the near term. This scenario becomes more probable if sticky US inflation compels the Fed to maintain higher interest rates for longer – an outcome poised to benefit the US dollar. For greater confidence in the bearish outlook, traders may opt to wait for more definitive cues. One such indication could be a breach of the support threshold around $2,335, where a key trendline intersects with the 38.2% Fibonacci retracement of the March-May rise. A higher-than-average trading volume accompanying such a technical breakdown would further validate the signal. In the event of XAU/USD decisively dipping beneath $2,335, the 50-day simple moving average at $2,325 will be an important line of defense against the sellers’ next offensive. While taking out this floor might be difficult, a successful breach could pave the way for a deeper pullback, drawing focus to a crucial Fibonacci level at $2,265, a tad below this month’s swing low. Conversely, if prices pivot to the upside and resume their upward journey, initial resistance can be identified at $2,365, followed by $2,377. Traders should keep a close eye on this latter ceiling, as a breakout could reduce the odds of additional weakness and facilitate a move towards $2,420. Continued gains could then bring the all-time high within reach. Gold price technical chart Source: TradingView This information has been prepared by IG, a trading name of IG Australia Pty Ltd. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients.
  • Create New...