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What to do now ASIC has followed ESMA’s margin changes?

What to do now ASIC has followed ESMA’s margin changes?

With everything going on in the world you could be forgiven for missing the latest announcement from the Australian Securities and Investments Commission (ASIC) last week regarding their recent margin changes but it is still big news in the online trading world. 

You may recall that Tradeview were one of the first to highlight the likelihood that ESMA’s proposed margin changes would be passed and gave detail on what it meant for clients around the world.  Hundreds of thousands of traders did not qualify for professional status so therefore had their trade sizes slashed due to the new leverage limits and immediately went looking for a broker that sat outside of ESMA’s jurisdiction to gain those leverage benefits back.  Australia was one of the more popular destinations and they benefitted short term but now they themselves have been hit with the same leverage restrictions (from 200:1 to 30:1 max) and this takes place on March 29th next year.  So the search for higher leverage starts again and even though this regulatory sweep is likely to continue, these changes do take time so while there is still a viable honeypot out there you will likely see the bees swarm toward it.

The issue this time is where to go?  It seems a toss-up between finding a broker that offers higher leverage against the risks of reduced regulation and client money protection that these lesser known regulators may offer, considering also that most of these brokers will not offer clients negative balance protection either. 

So, traders will be looking to find a broker that covers as many of these 7 key points as possible:

  • Long standing and reputable broker
  • Offers the same margin levels that traders have become accustomed to
  • Has a strong client money protection policy
  • Competitively priced
  • Negative balance protection
  • Offers the technology and spreads of a Tier 1 Broker
  • Highly recognised client service

Quite a list by today’s standards but they are out there and one option that covers all 7 is mentioned below.

Firstly it is worth searching on broker review sites, which can be a great help for prospective traders in understanding what their current clients think and you don’t want to just look for who has the highest score but one who takes the time to respond to their clients reviews, and the tone with which they respond also says a lot about them.  So be sure to bear this in mind while carrying out your next search.  It is also worth pointing out that there are many review sites that benefit from payments to garner great sounding reviews so they should ideally be an independent reviewer and one with international recognition, such as TrustPilot perhaps.

To finalise, this search is already underway but if you are impatient and want to be given the answers before doing your homework then one Broker that meets all of the 7 key points mentioned above is Tradeview.  They have been trading for over 14 years, have a great client base where independent reviews can be found here.

They offer the leverage, low to zero comms depending on account type and zero spreads for much of the day on some of the Major FX pairs such as EUR/USD.  They offer negative balance protection, cutting edge technology with MT4, MT5 and cTrader and you can find out more by clicking here to apply.

Do please take into consideration the key points mentioned above but also make sure to do your own research to feel as comfortable as possible when changing your broker.

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.

TVM Global 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.

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.