It's need to understand if someone thinking low leverage is stupid decision then I will salute them
High leverage was local brokers trap specially brokers from Islands regulations and a lot of peoples lost their funds in this high leverage gambling
The reason behind the vote ...
The reason behind the vote you will learn how many peoples loosing in trade business specially in Forex
Its a bit of control over where the money goes, during the previous period there were some claims that China and Japan is manipulating the forex market, then we heard that NAFTA is going to be re-negotiated, afterwards every country putting taxes on the other
Im guessing this is part of the trade war and how citizens of every country can chose to put their money with different brokers "outside of their country" because of their leverage or other reasons, North American traders for instance sometimes chose brokers outside of the USA due to the very low leverage "1:50" and the fact that brokers there forbid hedging which could be a life savior sometimes
If all the above is true, then ESMA is not going to stop there, they will put more regulatory forms such as those which are driving brokers away from accepting traders from such countries, bringing traders to put their dollars with European brokers
The product intervention measures will be applied under
Article 40 of the Markets in Financial Instruments Regulation (MiFIR)
and will have an initial duration of up to three months, after which the
measures may be renewed.
In its announcement, the FCA stated that it “expects
to consult on whether to apply these measures on a permanent basis to
firms offering CFDs and binary options to retail clients”.
grid and martingale depends most on leverage for sure it will affected
Throw a 0.01 lot which doesn't pass to be processed by the banks and you hand yourself straight and clear to the brokers, so they can do whatever they want with your money
But only if you are a trader with some capital of course ..