Advice on avoiding ESMA restrictions

[Guest mckenzie126]

As a UK resident I'd like to open an IG account & trade a small account with cfd's somewhere outside of ESMA restrictions but am unsure where will be best. Can anyone point me in the direction of an article, forum post or any other info regarding how to make a decision. Does Switzerland have any advantages over say Australia for example? I see Switzerland offers a deposit compensation scheme but Australia doesn't.

Thanks for any help

[Trevbeats]

Are very good question as I will be opening an Aussie account soon?

I guess the advantage is lower margins overall...   Let me know.

TreV  

 

 

 

[Caseynotes]

@mckenzie126 & @Trevbeats,  see this IG comparison page (recently updated to include the US);

https://www.ig.com/uk/compare-our-leveraged-trading

[Trevbeats]

Good morning,

Can anyone shed some light on this subject, please?

So I have switched to Aussie CFD account however I have noticed when buying stocks I get charged a commission of £10 per trade and I will be liable for tax as well. So what are the benefits compared to spread betting and CFDs?

Hence why I am with CFDs now is because Aussie account does not offer spread betting, will they be bringing that option in soon? 

Regards Trev

 

[Caseynotes]

@Trevbeats, spread betting is only available in the UK because it takes advantage of specific UK law. Other counties don't have an equivalent law and are unlikely to create one.

The sole advantage of an account outside of ESMA regulation is having a lower margin requirement (higher leverage).   

[Guest Mtrader9]

With regards to having a margin call , and Equity used what percentage does have to go up to before positions are automatically stopped out off ?

[Caseynotes]

22 hours ago, Mtrader9 said:

With regards to having a margin call , and Equity used what percentage does have to go up to before positions are automatically stopped out off ?

I'll add a link to an answer to the same question asked in another thread.

 

[Caseynotes]

Looks like ASIC are going to follow ESMA banning Binaries and reducing leverage available to retail clients.

https://asic.gov.au/about-asic/news-centre/find-a-media-release/2019-releases/19-220mr-asic-proposes-ban-on-the-sale-of-binary-options-to-retail-clients-and-restrictions-on-the-sale-of-cfds/

[dmedin]

You get a lower margin rate but you can fall into debt to IG.

Bailiffs and repossessions ... not worth it.

CFDs and professional trading are quite rightly only for very rich people who can afford to blow their millions on gambling.

[Caseynotes]

Ouch, ASIC are looking to outdo ESMA;

proposal for max leverage of 20:1 for fx, down from 200:1  (esma 30:1)

15:1 for indices from 200:1 ... see list below.

page 46;  https://download.asic.gov.au/media/5241542/cp322-published-22-august-2019.pdf

[dmedin]

When UK leaves the EU we can become the world's offshore financial centre 🤓

[phillo]

4 hours ago, Caseynotes said:

Looks like ASIC are going to follow ESMA banning Binaries and reducing leverage available to retail clients.

https://asic.gov.au/about-asic/news-centre/find-a-media-release/2019-releases/19-220mr-asic-proposes-ban-on-the-sale-of-binary-options-to-retail-clients-and-restrictions-on-the-sale-of-cfds/

National lottery , scratchcards, online bingo - no problem, but leverage in trading !

[Guest Billmanator]

I just read the ASIC consultation paper. Part of it was drivel and part was fair in some respects. Open to consultation until 1 October 2019. Hopefully they do what they did in Cyprus and relax the margin limit restrictions for traders with "enhanced trading experience".

Edited August 22, 2019 by Billmanator

[Trevbeats]

1 hour ago, dmedin said:

When UK leaves the EU we can become the world's offshore financial centre 🤓

What does that really mean? Will we be out of the Esma rule then? 

[Caseynotes]

2 minutes ago, Trevbeats said:

What does that really mean? Will we be out of the Esma rule then? 

Probably not, the FCA seems to be fully behind esma and the regulations.

[Lucifer]

https://tradedirect365.com.au/

 

Tight Fixed Spreads

Trade the Aussie 200 index with a fixed day spread of 0.9 pts (Less than the exchange spread, no commission) or the Euro-Dollar and Dollar-Yen at just 0.7 pips. All fixed spreads.

Negative Balance Protection

TradeDirect365 offers Negative Balance Protection, ensuring that clients cannot lose more than they have put into their account.

Fixed Prices In Volatile Markets

Plan your entries, exits and stop loss areas with the confidence of knowing that the spreads will not suddenly widen at inopportune times when volatility starts to increase.

Regulated By ASIC

Trade with confidence knowing that TradeDirect365 adheres to the strict licensing conditions imposed by the internationally regarded ASIC governing body.

200:1 Leverage

Get the extra leverage that ASIC regulated providers can offer over other parts of the world to take advantage of trading opportunities at the moment they occur, and without any huge deposits required.

Rebate Program

Get access to our generous bonus rebate offer for your first month trading up to $2500. Terms and conditions here.

[Caseynotes]

yes but ASIC are proposing to cut the leverage in Australia from 200:1 to 15:1 and the bonus rebate will go as well so not much left on offer really.

[Lucifer]

https://www.financemagnates.com/forex/brokers/breaking-poland-defies-esma-enables-1001-leverage/

[Guest Bombberman]

On 22/08/2019 at 17:59, Billmanator said:

I just read the ASIC consultation paper. Part of it was drivel and part was fair in some respects. Open to consultation until 1 October 2019. Hopefully they do what they did in Cyprus and relax the margin limit restrictions for traders with "enhanced trading experience".

I just replied an email to ASIC and CC to IG

I'm not Aussie and in my country there is no such high leverage products to trade. That's why I try to find high leveraged products to trade, and IG is one of the top provider who can trust in pricing, execution, safe of funds and other professional services. I dont want to use unregulated or brokers who setup on some islands somewhere....

 

I feel a lot of upset more than I lost my trades recently on indices. It means I habe no chance to use high leverage to gain more while if you lose in trading, you can come back but change in leverage significantly, no chances.

[business8]

once the changes take affect, I will be looking for a new broker, cfd provider - able to offer the leverage we are accustomed to. Any suggestions appreciated

[dmedin]

47 minutes ago, business8 said:

once the changes take affect, I will be looking for a new broker, cfd provider - able to offer the leverage we are accustomed to. Any suggestions appreciated

I'm sure there are plenty of fly-by-night operators in dodgy banana republics/tax havens that will happily oblige you.

[dmedin]

On 22/08/2019 at 12:14, Caseynotes said:

Probably not, the FCA seems to be fully behind esma and the regulations.

 

Didn't the CEO of Hargreaves Landsown come out in favour of Brexit because he viewed these regulations as 'holding back Britain's entrepreneurial spirit'?  We all know what these folk mean by expressions like that.   Shylock demands his pound of flesh.

[business8]

15 minutes ago, dmedin said:

I'm sure there are plenty of fly-by-night operators in dodgy banana republics/tax havens that will happily oblige you.

Very informative post. Thank you so much for taking the time to respond to my original post. You are very smart man. FO DH

[dmedin]

44 minutes ago, business8 said:

Very informative post. Thank you so much for taking the time to respond to my original post. You are very smart man. FO DH

Is this more helpful?  https://www.google.com/search?q=offshore+leveraged+trading+providers

 

 

[Guest Mark27000]

1 hour ago, business8 said:

Very informative post. Thank you so much for taking the time to respond to my original post. You are very smart man. FO DH

Whats the DH .....Richard Head 😂

[dmedin]

Got a mouth like a sailor and misses his 200 - 1 leverage - would have thought he'd be a perfect fit for some dodgy criminal outfit. 

[dmedin]

There you go, you ungrateful pr!ck: https://fx-list.com/offshore-forex-brokers

Roboforex based in Belize.

Enjoy!

Edited September 12, 2019 by dmedin

[business8]

19 hours ago, dmedin said:

There you go, you ungrateful pr!ck: https://fx-list.com/offshore-forex-brokers

Roboforex based in Belize.

Enjoy!

At which stage was anybody ungrateful??

Thank you for your informative replies, greatly appreciated - as opposed to your initial sarcastic response.

[Caseynotes]

 

On 12/09/2019 at 12:32, business8 said:

once the changes take affect, I will be looking for a new broker, cfd provider - able to offer the leverage we are accustomed to. Any suggestions appreciated

Not sure if Switzerland is still an option, might be worth a query >

https://www.ig.com/uk/compare-our-leveraged-trading

 

[business8]

My initial thoughts are New Zealand.