Are you worried of the new ESMA restrictions? AAAfx is one of the European brokers that have already sent out information about the new leverage rules to their European customers. New Leverage Rules Affect European Forex Traders. How does it affect the traders? The leverage becomes much stricter than we have been use to. The result? You will get a margin call much quicker as the leverage goes from 100:1 to 30:1. This means you need to be extra careful with your trading from what you were accustomed to. You must have lower lot settings and reduce the number of open trades.
New Leverage Rules Affect European Forex Traders
This mail was sent a few weeks ago, and a new reminder was sent this week:
European regulator (ESMA) announced Forex, Cryptos and CFD products’ measures which come into effect on 1 August 2018. Following our previous notification email sent on 13 July 2018, we would like to remind you that changes to your trading conditions at AAAFx will take effect on 29 July 2018 at Market Opening. The new regulations will govern the leverage profiles applied to Retail Clients of AAAFx in order to protect Investors and to ensure both responsible position sizing and risk management. Please ensure to carefully consult the breakdown below so that you are fully prepared for the upcoming changes. What are the ESMA Measures referring to? Leverage Restrictions: Leverages will be reduced and adjusted to reflect the volatility of the underlying asset, as of 29 July 2018. More specifically:
30:1 Major Currency Pairs For retail FX positions on the following (major) currency pairs: EUR/USD, USD/JPY, GBP/USD, USD/CHF, CHF/JPY, GBP/JPY, USD/CAD, EUR/CAD, EUR/CHF, EUR/GBP, CAD/CHF, EUR/JPY, GBP/CAD, CAD/JPY, GBP/CHF
20:1 Non-major Currency Pairs, Gold and major Indice
• FX positions on all other currency pairs • CFD: XAU/USD, UK100, FRA40, GER30, SPX500, US30, NAS100, AUS200, EUSTX50
10:1 Commodities other than Gold and non-major equity Indices USOIL, UKOIL, NGAS, XAG/USD, Copper, CHN50, and ESP35
2:1 Cryptocurrencies CFDs Will this impact my currently open positions? The abovementioned restrictions will apply to all positions of the AAAFx Retail Clients, existing and new, as of 29 July 2018. We strongly advise you to manage your currently open positions and ensure that you have enough equity in your account to cover the new margin requirements in order to avoid margin calls and positions being liquidated. To safeguard your account, we recommend that you take action as soon as possible.
Brand New European Leverage Rules: flexibility or chaos?
Today AAAfx sent out a new email where they tempt their traders that are not EU residents to enjoy flexible margins:
The regulatory landscape is changing affecting all European Clients and Forex/CFD Providers; European regulator (ESMA) announced Forex, Cryptos and CFD products’ measures which will take effect on 1 August 2018.
What are the measures referring to?
These measures include the restriction of the leverage available to all Retail Clients up to 30:1, according to the volatility of the underlying asset traded, which will result in margin rate increases.
I am not an EU Resident. What should I do?
Enjoy flexible Margins – for Forex Traders with leverage trouble
They write further:
For us at AAAFx, being proactive is a way of thinking and acting! We anticipated these changes, we moved forward and we are glad to offer you the following choices:1. Become a Professional Client in AAAFx Europe
You can apply to be classified as a Professional Client and keep on navigating the markets with confidence and flexibility.
Log in to your AAAFx account and submit your application online.
2. AAAFx becomes International – Apply now
As a non-European Client, you may request to have your investment accounts transferred to AAAFx International and keep the same trading conditions that you currently benefit from in AAAFx Europe:
• Trade with confidence with a reliable brand
• Leverage up to 500:1
• Zero mark-up, transparent commission based pricing model
• Negative Balance Protection
• Segregation of funds in top-tier Banks
Application is easy and fast. Submit your request by email at: email@example.com, and remember to include the number of the account(s) that you wish to transfer.
Stay tuned as we will soon launch the International version of AAAFx!
Should you need clarification, please do not hesitate to contact us. We are here to help!
We at ForexandProfits.com are independent and just share this as we received the news! We hope you find it helpful. Are you worried of the new ESMA restrictions? What do you think of the brand new leverage rules that will affect European traders? Will it be more flexible or just a chaos?Let us know what you think.