How do ESMA’s new rules affect products?
New minimum margin rates
ESMA’s new rules will be applied from 28 July introducing the following leverage restrictions for retail traders:
- 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
These restrictions will result in increased margins across all markets, which you can see in the examples.
- Major FX
- Minor FX
- Major indices
- Minor indices
Current minimum margin rate 0.5%
New minimum margin rate 3.33%
For Currency pairs containing any two of the following currencies: USD, EUR, JPY, GBP, CAD, CHF
If you placed a EUR/USD trade at £5/point, assuming a current market price of 12320, your current margin requirement would be £308. Under the new rules your margin requirement will be £2051.28.