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The Side Effects of the ESMA Margin Changes

We are already into the start of Autumn and with all of the Institutional desks back to being fully manned, the summer of irrational moves on thin volumes is over for another year. Business is seemingly back to normal, but perhaps not so for the Retail broker.

The ESMA regulation changes this summer have left the retail trader with little choice but to find new homes and where there were a couple of hundred firms who were almost impossible to choose between there are now very few that suit the current trader. These changes were touted as creating increased safety for retail clients, most of which have not welcomed the change. The results so far are that rather than trade less, make less and feel safer they have had to trade more to cover the shortfall in margin or just deposit that which they weren’t previously willing. After trying to work this way many have ended up leaving their broker and this will make for interesting reading on the
3 rd quarter and full year results for many of these firms be they big or small.

A consolidation industry wide, is now certainly a possibility for these brokers who will need to pool resources between them to survive. Any consolidation though, does not fix the core issue of the margin changes so they will likely have to change their business model and make a big push towards professional traders only, ignoring the retail traders going forward.

The Australian may brokers have benefitted from being in a non ESMA jurisdiction and seen an increase in clients but it is widely thought that they will soon follow suit and change their margins to match the ESMA guidelines due to the close ties of the Australian regulator ASIC and the FCA.

So an industry wide shake up is under way, with ESMA recently renewing their margin restrictions, as was widely expected and more clients being squeezed out of trading in the UK and Europe looking for alternative, safe and well-respected broker who isn’t hampered by these regulation changes.

When investigating the options, with all of the above in mind, it seems they are few and far between.

Tradeview fits the bill with its 14 year history and continued growth in reputation and international coverage, offering segregated client funds, margins that traders are still searching for and all of the products and instruments you would expect of a top broker. They are one of the best options for those Introducing Brokers also looking for a new home for their clients and they give some extremely competitive pricing.

Related: The ESMA and Its New Regulations
Related: Introducing Brokers: Introducing Brokers: Where to go after ESMA
Related: What to do now ASIC has followed ESMA’s margin changes?

If a client needed any further convincing, then here is a comparison table between the best leverage that ESMA allows and that by which Tradeview can still offer:

I will let that sink in and should you wish to find out more then please feel free to contact me at, connect with me on LinkedIn or simply open an account here.

Be sure to look out for my next article on the Finance Magnates London Summit 2018 that we will be attending and if you wish to book a meeting with me there to discuss how we can help you or your business then please feel free to get in contact.

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Tradeview Ltd. is not a portfolio manager or an investment advisor. This Market Report is for informational purposes only. Any statements made or opinions voiced in this Market Report do not constitute investment advice. The Tradeview Ltd. Market Report does not constitute a solicitation to buy or sell in the financial markets. Although the information contained in the Market Report comes from trusted sources, Tradeview Ltd. is not responsible for guaranteeing the accuracy, timeliness, completeness, or fitness of such sources. Tradeview Ltd. shall not be responsible for and disclaims all liability for any losses which may be suffered from access and use of the contents of the Tradeview Ltd. Market Report. Trading any financial instrument on margin, using leverage or otherwise involves considerable risk. Therefore, before deciding to participate in any style of trading, you should carefully consider your investment objectives, level of experience and risk appetite. Most importantly, do not invest money you cannot afford to lose. Consulting with your investment counselor, attorney, accountant or other professional upon whom you rely for guidance as to the appropriateness of an investment in any style of trading is recommended.

Tradeview Ltd.

Is licensed to carry on securities investment business and is regulated by the Cayman Islands Monetary Authority (CIMA) as a full securities broker-dealer. Tradeview conducts business pursuant to the Cayman Islands Securities Investment Business Law (SIBL) and its activities fall under the direct supervision of the Investments and Securities Division of CIMA.
Headquarters: 5th Floor Anderson Square, 64 Shedden Road, Georgetown, Grand Cayman, Cayman Islands KY1-1002, BWI.

Tradeview Asia Ltd.

Is licensed and regulated by the Labuan Financial Services Authority (FSA) as a Money Broker, registration number LL15870 licensed to facilitate transactions in foreign exchange pursuant to Labuan Financial Services and Securities Act 2010, the Labuan Companies Act 1990 and the Labuan Business Activity Tax Act 1990.
Headquarters: International Business Financial Centre at Office 5, Jamie Business Center I, Unit F10, First Floor, Paragon Labuan, Jalan Mustapha, 87000 Labuan F.T.

Tradeview Europe Ltd.

Is licensed as a Category 2 Investment Service Company and is regulated by the Malta Financial Services Authority (MFSA). The Malta Financial Services Authority (MFSA) is the single regulator for financial services in Malta. MFSA is a fully autonomous public institution and reports to Parliament on an annual basis. The MFSA is a member of the European Banking Authority (EBA), the European Securities and Markets Authority (ESMA) and the International Organization of Securities Commissions (IOSCO) and is a signatory of the Multilateral Memorandum of Understanding with other European regulatory Institutions. Tradeview is authorized to provide financial services across multiple asset classes and is passported in the EU/EEA under MiFID II (EU Markets in Financial Instruments Directive).
Headquarters: 157 Archbishops Street, Valletta VLT Malta 1440.

Tradeview Financial Markets S.A.C Global

Is authorized to conduct business pursuant to and in compliance with the General Law of Companies (LGS) promulgated by the government of Peru. Tradeview Financial Markets S.A.C is registered with the National Superintendence of Public Registries (SUNARP), company number 13089531. Tradeview Financial Markets S.A.C provides financial services in selected OTC derivative markets in compliance with all applicable government regulations.
Headquarters: Los Mirtos 239 Urb. San Eugenio, Lince, Lima, Perú.