New ESMA rules on leverage trading and bonus offers

[ProTrader]

The European Securities and Markets Authority (ESMA) has formally adopted new measures on the provision of contracts for differences (CFDs) and binary options to retail investors. To simple, as followed:

1. Max leverage is 30:1
2. ban Binary Options altogether
3. incentives such as deposit bonus is also banned

The rules applied to all EU licensed brokers (CySEC, FCA, etc), released in March and come to effect in July.

Source: https://www.esma.europa.eu/press-ne...intervention-measures-cfds-and-binary-options
Are you trading with a EU licensed broker? Is the new rule set affect you?

 

[Andy]

I guess the broker will have many ways to deal with the issue, as there still have lots of traders who would be attracted to the bonus and love to trade on high leverage.

Dukascopy for example, they have sub-division company for clients outside of European Union. https://www.dukascopy.com/europe/english/about/faq/#a1673