MT4 Custom Leverage Plugin to Comply with new ESMA measures
The new measures concerning CFDs and binary options provision to retail investors by ESMA (The European Securities and Markets Authority) takes effect on the 1st of August 2018. Important to note that the measures are temporary in nature and can be either extended or uplifted after a three month period. Earlier this month on the 2nd of July ESMA prohibited any marketing, distribution and sale activities of binary options to retail investors.
CFD instruments got off with a restriction, which defines the amount of leverage that forex brokers can provide to a certain group of assets. The main concern for MetaTrader 4 brokers comes from 30:1 leverage on major currency pairs, e.g. USD, EUR, JPY, GBP, CAD, CHF, as the platform is missing 30:1 leverage settings.
Fortunately, Brokeree’s MT4 Custom Leverage Plugin was built to extend exactly that functionality of MetaTrader 4. This simple plugin allows setting custom leverage value per group/account for specific instruments, using symbol masks. As the measure by ESMA might be temporary lasting only a couple of months, you can order our plugin with a monthly subscription via email@example.com, receiving the solution for your need and controlling your expenses.
Other key points addressed by the measure include:
- A restriction on incentives and bonuses that are used to attract retail investors to trade CFDs;
- Protection of negative balance per account to provide a guaranteed limit to prevent additional losses;
- A risk warning with a percentage of losses on investors’ accounts that are trading CFDs;
- A margin close at 50% of the minimum required margin set per account.
If you have any questions, or concerns regarding the new intervention measures by ESMA, don’t hesitate to contact Brokeree team for a timely consultation via firstname.lastname@example.org