Potential mass exodus from Spreadbetters.

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Old Jan 15, 2018, 8:39pm   #1
 
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Potential mass exodus from Spreadbetters.

Got an email from my spreadbetter, telling me that margins are likely going through the roof on all instruments. This is due to ESMA's plan to restrict the leverage available to retail clients to a maximum of 30:1. In plain english, unless you have hundreds of thousands of pounds in your account, you're out the game.

Having rung around most spreadbetters today, it appears that this is across the board and having spoken to my own spreadbetting firm at length today, it appears that this is a done deal.

I trade forex and indices. Can someone recommend a broker, (or alternative vehicle to spreadbetting), to trade these markets, ie a broker who will deal with the average man in the street, not just a professional.

Thanks.

David.
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Old Jan 15, 2018, 11:20pm   #2
Joined Feb 2002
Worrying news indeed David. Might have to seek alternatives myself too.

Anybody know anything more about this?
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Old Jan 15, 2018, 11:46pm   #3
 
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30:1 sounds pretty sensible to me. You'd need a grand in your acc to trade the DOW at £1/pt, whats wrong with that? or have I misunderstood?
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Old Jan 15, 2018, 11:48pm   #4
Joined Jul 2004
If you want higher leverage its probably only two things you can do?

go pro (if you pass)

http://www.trade2win.com/boards/spre...il-client.html

or find a broker in a country outside EU? (with other regulations)

of course there is a third option

borrow money to trade with..

Last edited by kalott; Jan 15, 2018 at 11:56pm.
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Old Jan 15, 2018, 11:53pm   #5
Joined Feb 2002
These links are interesting but there's nothing firm yet about will definitely happen or what will definitely not happen.
https://www.esma.europa.eu/press-new...binary-options

https://www.fca.org.uk/news/statemen...binary-options

https://uk.investing.com/news/stock-...-market-968319


No mention of spreadbetting specifically from the FCA but ESMA talk about "other speculative products".
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Old Jan 16, 2018, 12:07am   #6
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Originally Posted by cbrads View Post
30:1 sounds pretty sensible to me. You'd need a grand in your acc to trade the DOW at £1/pt, whats wrong with that? or have I misunderstood?
yes, if we get 30 on indices and major forex?

and maybe negative balance protection? (not sure about that)

Last edited by kalott; Jan 16, 2018 at 12:12am.
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Old Jan 16, 2018, 9:16am   #7
 
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Quote:
Originally Posted by Lepope View Post
Got an email from my spreadbetter, telling me that margins are likely going through the roof on all instruments. This is due to ESMA's plan to restrict the leverage available to retail clients to a maximum of 30:1. In plain english, unless you have hundreds of thousands of pounds in your account, you're out the game.

Having rung around most spreadbetters today, it appears that this is across the board and having spoken to my own spreadbetting firm at length today, it appears that this is a done deal.

I trade forex and indices. Can someone recommend a broker, (or alternative vehicle to spreadbetting), to trade these markets, ie a broker who will deal with the average man in the street, not just a professional.

Thanks.

David.
They only mention CFD's and Binary Options, nothing about Spread-betting. CFD's are generally considered to be a more "Professional" product so I can understand why they want to limit access to retail customers.
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Old Jan 16, 2018, 9:24am   #8
 
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Originally Posted by new_trader View Post
They only mention CFD's and Binary Options, nothing about Spread-betting. CFD's are generally considered to be a more "Professional" product so I can understand why they want to limit access to retail customers.
No it's everything.
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