ETX leading the way around the ESMA ruling.

[Synonym]

Regulations never (almost) get loosened. Its time to adapt.

For some that will mean exiting trading: but given the low interest rates offered on savings and other forms of investment this is not the worst time in history to be forced to increase capital in a trading account. Let's be frank, most of those guys would have been wiping out their accounts within a year anyway.

Long as you don't increase your capital risk if you have to increase your capital to adapt to ESMA leverage, what harm?

Agree Tom re regs. As you say, rarely loosened.

I disagree re margin. Rather than a across the board change in margin, why not look at those who have been trading profitably or have not blown up/ even had a margin call. If they've been doing that over an extended period of time, why suddenly change what they can do and force them into riskier markets/overseas providers with less protection..which is where many who can trade and many who can't are going. Makes no sense to me.

It's like the pattern day trading rules in the US. If you are just managing swing trades on stocks and happen to be stopped out on the day you enter your trade, even thought you are managing your risk well, you are penalised by having it classed as a day trade.

 

[tomorton]

Agree Tom re regs. As you say, rarely loosened.

I disagree re margin. Rather than a across the board change in margin, why not look at those who have been trading profitably or have not blown up/ even had a margin call. If they've been doing that over an extended period of time, why suddenly change what they can do and force them into riskier markets/overseas providers with less protection..which is where many who can trade and many who can't are going. Makes no sense to me.

It's like the pattern day trading rules in the US. If you are just managing swing trades on stocks and happen to be stopped out on the day you enter your trade, even thought you are managing your risk well, you are penalised by having it classed as a day trade.

Yes, ESMA could easily have used a less sledge hammer-like approach so that experienced traders who haven't blown up, no matter how small, got a free pass.

But it depends on what you think ESMA's objectives are..... protect uninfluential fools from losing their money on ESMA's turf, or drive people to buy investment products from the big players and stop managing their own investments? I go for the latter.

 

[Synonym]

Yes, ESMA could easily have used a less sledge hammer-like approach so that experienced traders who haven't blown up, no matter how small, got a free pass.

But it depends on what you think ESMA's objectives are..... protect uninfluential fools from losing their money on ESMA's turf, or drive people to buy investment products from the big players and stop managing their own investments? I go for the latter.

We think very alike Tom. I agree entirely. It's like how the Ave Joe is stopped from investing/trading in many different private / venture cap enterprises and other investments/instruments, as they are deemed far too risky for us mere mortals...but online gambling and the lottery - well just go for it Joe!

 

[tomorton]

Doubtless the ESMA report on the first 3 months of the new regulations is already being written and all they need do is fill in the blanks with the positive statistics - they will have already set up protocols with the key big players to collect these (but not the negative ones).

So it might say something like -
X% reduction in total of private retail trader accounts in SB, forex and CFD's
X% reduction in complaints re forex brokers to national regulators in X out of Y ESMA national jurisdictions
X% increase in new accounts / enquiries to large reputable finance houses
loss of X forex brokers, SB, BO and CFD firms who chose to exit the EU market

Any numbers, no matter how small, at X will be counted as success indicators.

 

[Synonym]

Doubtless the ESMA report on the first 3 months of the new regulations is already being written and all they need do is fill in the blanks with the positive statistics - they will have already set up protocols with the key big players to collect these (but not the negative ones).

So it might say something like -
X% reduction in total of private retail trader accounts in SB, forex and CFD's
X% reduction in complaints re forex brokers to national regulators in X out of Y ESMA national jurisdictions
X% increase in new accounts / enquiries to large reputable finance houses
loss of X forex brokers, SB, BO and CFD firms who chose to exit the EU market

Any numbers, no matter how small, at X will be counted as success indicators.

Bang on. So true and so sad.

 

[Your User Name]

One of the perennial spreadbet questions was why income wasn't taxed, to which the answer was that the gov still exacted its cut from the SB providers' profits. If the rule changes stay I think 11 Downing St will be suffering, which might be a good reason for a U-turn. (Not on binaries, though!)

 

[Splitlink]

One of the perennial spreadbet questions was why income wasn't taxed, to which the answer was that the gov still exacted its cut from the SB providers' profits. If the rule changes stay I think 11 Downing St will be suffering, which might be a good reason for a U-turn. (Not on binaries, though!)

I thought that the reason was that losses could be written off against profits. The SB providers are considered professionals, so they would be taxed , anyway.

I think that we are labelled as gamblers, whether we like it or not. Gvt. would have to tax horses, casinos, football, lotteries if they taxed us.

Still, don't your breath. It might get around to doing just that! In Spain, there is a 20% tax on the lottery--the rest of gambling I don't know about.

 

[Your User Name]

No tax on SB client profits because it is (or was) gambling, but providers have to pay tax on the money the SB-er has given away.
Funny that Stuart Wheeler, who invented SB and donated lots ot money to the Cons party, will see part of IG's zillions eke away.

 

[jkane]

Where did you you find the margin req Tom? I can't find that. No, you cant adjust the SL once set, but i find given the way the spreads blast wide open during the before hours or at the open you can't afford to have and SL sat in the market. Have you not found the same? Perhaps it's just the markets i'm trading.

Its terrible

stay away from spread betting options

lol

 

[Synonym]

Its terrible

stay away from spread betting options

lol

Thanks JKane. I can't agree more. I've spread bet for a long time and the tactics i used to have to put in place to manage the ridiculous spreads where crazy. I shudder to think what they would be like on options. I've opened an options account in the US. A much better way to go.

Cheers
Syn

 

[NVP]

Thanks Synonym. Some unexpected results from ESMA's half-witted regulations.

so how come we all expected them ??

 

[tomorton]

Well I didn't expect them. But then again, I was always taken by surprise every week when Roald Dahl's Tales of the Unexpected came on the telly.

 

[Your User Name]

Well I didn't expect them. But then again, I was always taken by surprise every week when Roald Dahl's Tales of the Unexpected came on the telly.

The sequel was even better.

 

[Aristix]

Does anyone know what is happening inside ETX?
I am an old client they are always good, they offer good instruments, with little size and low spread.
But customer service is becoming inchomprensible. They read emails and don't answer. I rewrite, receive return receipt and none answers. And this more times. It never happened before. Last time I sent documets to become professional, they would be happy, and none answer.
I know some employed went away but I think I hope they were replaced.
Peraphs have new absurde ESMA rules reduced gains for the company and forced it to reduce staff?

 

[ChristianXavier]

I'm new to trading, can someone explain what's going on here?