Do you know if there is a list

Amancio posted:
I can't remember the location but I am sure that I saw something about this on an EU page related to the new ESMA regulation

L3CAP posted:
ESMA has been a bit unfair as these numbers do not show the real picture behind the scenes.

They portray only the Retail trader statistics, so say in a brokerage there is 900 Clients that had €100 or less accounts and they lost their money (Highly likely scenario), and another 100 with larger Balances who have broken even/made a profit, by ESMA regulation the broker must state that 90% of traders lose money with this broker.

In another scenario a broker may have 100 professional Clients that are profitable, and only 100 or so retail traders that have lost their funds trading, this again would show that 100% traders lose money with this broker.

I believe other metrics such as Best Execution, Broker Capitalisation and reputation of broker are better gauges of broker reliability rather than the trader metrics that ESMA brokers have to show at the bottom of their websites.

L3CAP posted:
But what about say a broker that accepts smaller deposits by retail traders? These accounts are likely to bust and give the broker a high losing score Vs a broker who may have a larger deposit requirements and their Clients are less likely to lose with bigger Balance (And the max 30:1 leverage).

Also the leverage cap is very recent and I believe after 1 year of having max leverage 30:1, it will be harder for retail Clients to lose their money, and subsequently the scoring of broker will probably improve.

togr posted:

L3CAP posted:
But what about say a broker that accepts smaller deposits by retail traders? These accounts are likely to bust and give the broker a high losing score Vs a broker who may have a larger deposit requirements and their Clients are less likely to lose with bigger Balance (And the max 30:1 leverage).

Also the leverage cap is very recent and I believe after 1 year of having max leverage 30:1, it will be harder for retail Clients to lose their money, and subsequently the scoring of broker will probably improve.

Well trading small account under 1k should bring the same risk/profit as big account.
That is all the matter of risk mgmt.

L3CAP posted:

togr posted:

L3CAP posted:
But what about say a broker that accepts smaller deposits by retail traders? These accounts are likely to bust and give the broker a high losing score Vs a broker who may have a larger deposit requirements and their Clients are less likely to lose with bigger Balance (And the max 30:1 leverage).

Also the leverage cap is very recent and I believe after 1 year of having max leverage 30:1, it will be harder for retail Clients to lose their money, and subsequently the scoring of broker will probably improve.

Well trading small account under 1k should bring the same risk/profit as big account.
That is all the matter of risk mgmt.

Risk Management is another subject for discussion 😄 Maybe ESMA should have been issuing circulars and directives on that!