eToro adapts to ESMA regulations
- On Monday, august 13, 2018
- In eToro
The European financial regulator ESMA has just implemented its new regulation on investment in financial markets.
As of August 1, 2018, brokers based in a European country are subjected to the regulations of ESMA Financial Regulator. They have to apply changes in the leverage offered to traders.
eToro has made the required changes and now the leverage effect on the financial markets accessible on the eToro platform applies as follows:
• Maximum leverage 1:30 for the Major Forex Pairs
• Maximum leverage 1:20 for Minor Forex Pairs & Exotic Forex Pairs
• Maximum leverage 1:20 for Major Indices
• Maximum leverage 1:20 for the Gold
• Maximum leverage 1:10 for Non Major Indices
• Maximum leverage 1:10 for Commodities and Silver
• Maximum leverage 1:5 for Stocks and ETFs
• Maximum leverage 1:2 for Cryptocurrencies
These leverage effects have been modified by eToro, in accordance with the new ESMA regulation. Previously, it was possible to invest with a leverage of 1:400 on the eToro platform but now the broker obeys the new rules.
It should be noted that traders who wish to benefit from greater leverage than the new regulations may switch to eToro AUS Capital Pty Ltd. under the ASIC regulation or the status of professional trader, which means, among other things, to have more than 500,000 € of cash or to work in the finance sector.