Respond to ESMA Proposals

Give your feedback on proposed changes to retail margin rates

Download and fill in our easy to use form and upload to ESMA's response page

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What you need to do:

The European Securities and Markets Authority (ESMA) is considering some proposals which are highly likely to affect your trading. You have until 5 February to respond to ESMA, and we would strongly encourage you to do so.

  1. Fill in the form
    Complete this simple editable response form

  2. Save it
    Save the form on your computer

  3. Send it back to us
    Email it to replytoesma@forex.com and we will send the form to ESMA on your behalf.

Alternatively, if you choose to upload the form directly to  ESMA's website  you will see there are a few extra details required to complete your submission:

  • Under ‘Activity’, please select ‘Individuals’ from the bottom of the dropdown
  • Under ‘Institution’, please write ‘N/A’

Please note your contribution may be published once the consultation closes, unless you request otherwise by ticking the checkbox on the submission page.

What are the proposals?

The proposals are designed to increase conduct standards across the industry. We largely support these changes, but feel the leverage restrictions are disproportionate and too restrictive.

ESMA’s leverage proposals include:

  • 30:1 leverage on major currency pairs = 3.33% margin
  • 20:1 leverage on major indices = 5% margin
  • 10:1 leverage on commodities (excluding gold) = 10% margin
  • 5:1 leverage on equities = 20% margin

As you can see from the tables below, these proposals would severely increase the margin required to trade:

Market Size Current Margin Required ESMA Proposed Margin
EUR/USD 10 CFDs £436 £2,906
Germany 30 10 CFDs £591 £591
Brent Crude 10 CFDs £493 £4,930
Apple 1000 Shares £6,276 £25,104

You can read all the proposals in full here.

More information

It’s important to remember that your account will not be affected unless, and until, ESMA’s proposals become rules. We will let you know well in advance of any changes to your account.

If you would like more information or have any questions, please contact us.

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