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ESMA RULING AND WHAT I AM DOING


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The EU are authoritarian and heading further to the left all the time which is why 17 million voted to leave but they are not going to make it easy. The new rules are to save us from ourselves which is always the excuse they use to take power away from people.

 

There are only two things you can do, either get used to trading in smaller size or find a broker outside FCA, EU jurisdiction but that comes with added risk of it's own. The 2 places arousing most interest are Australia and Cyprus, Cyprus just staged a major expo  https://www.ifxexpo.com/  which included IG as an exhibitor but their regulation has had serious issues in the past. Australia seems better regulated but you are going to be a long way away from your money. 

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"The CySEC note to licensed CIF brokers indicates very clearly that the new rules will apply not just to clients which brokers take from within the EU, but also very much applies to clients from outside the EU who deposit and trade with the EU-licensed broker."

 

https://www.leaprate.com/forex/regulations/cysec-esma-cfd-leverage-restrictions-non-eu-clients/

 

Switzerland on the other hand seems to ignore EU/ESMA?

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IG have offices in Oz and Switzerland. You can open accounts there, but they’d be CFD accounts (spread betting is uk only and there’s no way around it). Go to IG.com and click the flag in the footer > go to relevant site > open a new account.

 

Simples

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Hi @cscokid,  if you type esma into the search box you will find a number of threads on the topic to which there are a number posts from IG staff explaining the process and IG's position.

Essentially it boils down to the fact that IG are bound by  FCA regulation and the FCA are bound by ESMA regulation.

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Thank you all for replying to the enclosed i posted  , my concern is i will have to put up multiple margin on  my trades come August and that i will be forced out of trading  i appreciate IG are bound by esma   and will look at the other posts more closely.

 

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  • 2 weeks later...

I agree with a previous poster... ASIC-regulated Australian brokers like IC markets are one of the better options (for now). Don't know how long they will accept EU clients after 1st August though. Also, if some are to be believed, it's only a matter of time before non-EU brokers are affected by similarly-restrictive regulations. 

Everything changes and this might only be a short-term solution. But, if the choice is using a non-EU broker or stopping trading altogether, I choose the former. 

 

Edited by JamesIG
MOD EDIT: no promotional material including affiliate referral links 
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Totally agree.

They are going to lose a lot of customers and a lot of commission.

But what can you expect from idiots.

The Brokers are going to have less customers for sure and LESS CASH from US ALL..

I believe they will figure this out eventually.

If I had a Brokerage I would be very upset.

Just a lot of dumb asses.

I think if a person has lasted 6 months in these markets the should be considered professional.

But they just don't want to TAKE OUR MONEY....Just spend it elsewhere.

Some Brokers even call their customers and ask them if they have read the new rulings.

Imbeciles for sure.

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Well said Prophetrade

I just got rejected again after applying for professional status, even though I fulfilled all the requirements they asked (Even the ones not stated on their website). They didn't write to me personally/ got an automated response (Great Manners).

I wrote back to complain,I still have heard nothing back..........

IG index do not care about retail clients, and have no customer service what so ever. They have clowns working in their credit dept. who are the bottom of the barrel in terms of talent. This ESMA ruling will lead to IG closing out your position as soon as you are in the red and making a mint. Professional status, they want idiots with 500k in the bank so they can take them to the cleaners too.

I have reached out to other providers today, and their response has been fast to say the least. I will update you guys when I get a final answer. (I don't care what JAMESIG says enough is enough with this shoddy excuse of a company ).

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15 hours ago, 202925 said:

lead to IG closing out your position as soon as you are in the red and making a mint

this strikes me as at least somewhat confusing. Is it possible to be both, in the red AND making a mint..? the two seem to be contradictory..

I am not eligible for Professional Status either (I feel my experience should mean that I am, and that is more important than the tests ascribed. My performance demonstrates more than the criteria- which seem a bit arbitrary) 

However, no point complaining, just keep leverages to a comfortable level or add a bit of ballast to the account. Not worth losing sleep over, imo.

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Guest 202925

Hi Rimmy

I meant IG will close out your position, and they make a mint

What has annoyed me is they advertise applying for this, then change the goal posts when it suits.

I haven’t got any explaination as to why still

Mark my words- this company will be finished shortly. 

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  • 2 weeks later...

I have been with IG for over  years but dont quailify as a professional client as my trades have not been large enough (within last 3 month time frame I think). 

I agree with Rimmy2000 in that that the ESMA rules do tighten the the critera for trading and we need to reassess our positions and act accordingly.

I think the ESMA rules will make you think a bit more before committing to a position (or opening multiple positions) due to the inncreased margin and close out rules.

As there is nothing we or IG can do about ESMA rules, we need to get ready for operating in a new trading landscape and look for a positive way to do this with our limited capital. 

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@202925 What on earth are you talking about? IG isn’t ‘the house’ in the same way a casino is. Why ON EARTH would you have an account with them if you thought that? Seems kinda dumb... 

also in my opinion the rules for professional are pretty clear. How have they changed the goal posts? Would be interested to hear. 

I read something in the paper the other day where something like 900k people applied for an account and only 120k odd were opened - I can’t remember the time frame. Also something like tens of thousands of people have applied for a professional account so no wonder your not getting a personalised response. 

Go figure ?

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So what is the consensus strategy (if one at all!) that majority of IG clients are applying for 28th July -18 when ESMA rules come into force?

It would be good to know how other retail traders are looking to act and in extreme cases – will you close IG account and walk?

Or even look for a non EU broker – Australia seem the most popular location to open new accounts but I would do a LOT of research if you are looking to do this.

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I can't find the thread to post this entry on - it is the one started by James re ESMA

I have now opened an account with IC Markets which I will try out - they are a very young company but they do seem to be OK.    I value freedom and I refuse to bend down under ESMA's rulings so decided to 'walk' as this negates ESMA's power over me and what it is trying to do which is to make me a slave.   I do hope many others will not bow down to the Master Esma wants to be.

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Medusa,

Have you researched IC Market and can you provide info particularly:

·         Are your UK deposits with IC Markets covered by any financial conduct authority scheme in AUS and what’s the limit of cover; if any.

·         Ease of deposit and more importantly withdrawals

·         Any legality issue of using AUS spreadbetting company

·         Anything else you may feel worth mentioning

Thanks as this will save other some research time

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