Non-ESMA trading institutions

Since ESMA, European Securities and Markets Authority, introduced financial leverage limitations, traders/investors in Europe became very limited when it comes to risk. Even though these limitations were introduced with the purpose of protecting investors against the overuse of leverage, these restrictions also limit potential gains.

For someone who’s looking for access to higher leverage has two options. The first option would be having a professional investor classification. And the second one would be to look for another institution that isn’t obliged to apply these restrictions imposed by ESMA. Being that most investors can’t meet the requirements to qualify for a professional investor qualification, the option to look for a different institution in another jurisdiction is much more accessible.

After some analysis, we found some interesting alternatives, which are the following.

Australia

It’s a country with a more liberal and stable regulation, with a high level of security regulated by ASIC, Australian Securities and Investments Commission. And even though it has the intention of following ESMA’s lead, the probability of that happening this year quite low, specially due to the pandemic the world is facing right now. That being said we can highlight the following institutions.

United Arab Emirates

A country where there’s a more relaxed and permissive regulation, which is made by the central bank. They show no intention of changing their regulations when it comes to leverage. Therefore we can focus on the following organization.

  • ADS Securities UAE – It has a leverage of up to 500:1, but it requires more capital to have access to better spreads. It should be taken into account the fact that it’s an extremely solid institution with a high level of liquidity.

Switzerland

With a less permissive regulation than the rest of the previously mentioned countries, when it comes to leverage it’s quite laxer. It allows for leverage up to 200:1. Here we present two options.

Rest of the world

In this section, we take into consideration countries like Belize, the Bahamas among others, where regulation is also laxer, but it comes with the added risk in terms of client protection. But both options we present here are the ones who do a better job of protecting their clients.

All these leverages pertain to the FX market, although lower in other type of markets, they’re still higher than the ones in the institutions regulated by ESMA in Europe.

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