Forex brokers after entering the ESMA guidelines - List of offers

Forex brokers after entering the ESMA guidelines

The new regulations introduced by the European regulator ESMA are coming to the Forex / CFD market with great leaps. The key changes that will come into force from 1 August 2018 relate primarily to changes in the amount of leverage, method of collateral and protection against the creation of a negative balance on the account. Therefore, all Forex brokers subject to European Union directives will be obliged to correct their offers addressed to retail clients.

In the table below, we present how the selected offers will look after entering the ESMA changes, paying attention to the most important elements.

List of brokers - June 2018 (offers valid from August 1, 2018)

Broker model	MM	STP / ECN	ECN	ECN	NDD
Regulation	KNF (Poland)	FCA (United Kingdom)	FKTK (Latvia)	ASIC (Australia)	CySEC (Cyprus)
Min. Deposit	None	100 PLN	100 USD	200$	500 PLN
Max. lever from 1 August 2018	1:30	1:30	1:30	1: 500 **	1:30
Possibility to switch to a "Professional Client"	YES	YES	NEVER	NEVER	YES
Max. lever for a professional customer	1:200	1:500	-	-	1:500
Min. Volume	0.01	0.01	0.01	0.01	0.01
Average spread of EUR / USD	0.3 pips	0.1 pips	0.2 pips	0.1 pips	0.3 pips
Commission*	3 USD for 1 lot	0,0018%	from 0,00008% to 0,0028%	5,5 $ for 1.0 lot	0,0040%
VIP commission	negotiable	0,0010%	-	negotiable	-
Forex Club discount	-	-10%	-	-21%	up to -15%
Number of instruments	approx. 3000	approx. 80	approx. 400	approx. 200	approx. 300
Platforma handlowa	MetaTrader 4 xNUMX xStation Mobile	MetaTrader 4 Website Mobile	JForex, Java, Web, MetaTrader 4 Bridge to: - Protrader - MultiCharts - NinjaTrader	MetaTrader 4 MetaTrader 5 cTrader Website Mobile	MetaTrader 4 / 5 cTrader Website Mobile
Deposit guarantee	in 100% to 3000 EUR in 90% to 22 000 EUR	50 000 GBP	in 100% to 3000 EUR in 90% to 22 000 EUR	-	CySEC - EUR 20
Deposit guarantee for a professional client	YES	YES	-	-	CySEC - NO
Debit protection	YES	YES	YES	NEVER	YES
Debit protection for a professional client	YES	YES	-	-	YES
An account in a Polish bank	YES	YES	YES	NEVER	YES
Check out DEMO	DEMO	DEMO	DEMO	DEMO	DEMO
Real Account	OPEN ACCOUNT	OPEN ACCOUNT	OPEN ACCOUNT	OPEN ACCOUNT	OPEN ACCOUNT

* The commission includes the Forex Club discount
** Under EU law, brokers should not offer EU residents (retail customers) more leverage than allowed by ESMA rules.

Professional Client

The possibility of changing the client's classification from retail to professional is a lifeline for more experienced traders who do not want to give up higher leverage.

In order to become a professional client one should meet the minimum 2 with 3 conditions:

• The customer has conducted significant volume transactions on the relevant market with an average frequency of 10 per quarter over the last four quarters;
• The value of the client's investment portfolio, defined as cash deposits and financial instruments, exceeds 500 000 EUR;
• The client has been working or working in the financial sector for at least one year in a position that requires knowledge about the provision of financial services or transactions.

More on the subject in a separate article HERE.

We also recommend to read the statement of our reader, who has passed the procedure of changing the classification several times positively.

Forex brokers from outside the EU

At present, there are no indications that brokers from outside the European Union will be covered by new regulations. Nevertheless, according to the law, they should not undertake promotional activities in Europe.

If you use a non-EU broker does not change our tax residence, which means that the tax settlement still takes place in our place of residence.