ESMA Announces the Date for Reducing CFD Leverage

The European Union financial regulator ESMA has announced the date when the new investor protection measures for retail CFD (contracts for difference) trading in the European Union will take effect: August 1, 2018  

Restrictions on CFD trading:

• Limits on leverage granted to retail clients

30:1 for major currency pairs,

20:1 for minor currency pairs, indices, and gold,

10:1 for other commodities,

5:1 for shares,

2:1 for cryptocurrencies

• Closing positions when the level reaches 50% of the minimum required margin

• Negative balance protection

• Restriction on incentives offered for CFD trading

• Standardized trading risk warning

  In accordance with MiFIR legislation, ESMA will introduce these rules for a three-month period, with the possibility of extension after the current period expires.   Please note that these restrictions target only retail traders at European brokerage companies and do not apply to traders with professional status. You can obtain this status through your broker. If you need help, you can contact us so we can help you resolve this matter with your broker.   Full information about these measures can be found on the ESMA website.