Anyone else affected by the new ASIC regulation to reduce max leverage to 1:30?

[Eugen Funk]

Hi, my broker will get forced to set the max leverage to 1:30 after 29th march (Australian ASIC). 

I am wondering how many MT user will get affected by this and if we have to expect reduction of valuable EAs and signals?

Best

[Eleni Anna Branou]

Eugen Funk:
Hi, my broker will get forced to set the max leverage to 1:30 after 29th march (Australian ASIC). 

I am wondering how many MT user will get affected by this and if we have to expect reduction of valuable EAs and signals?

Best

Yes, this affects all retail clients of Australian brokers, from the end of March onwards.

[William Roeder]

USA has been at 50:1 for a decade. Control your risk.

Risk depends on your initial stop loss, lot size, and the value of the symbol. It does not depend on margin and leverage. No SL means you have infinite risk. Never risk more than a small percentage of your trading funds, certainly less than 2% per trade, 6% total.

1. You place the stop where it needs to be — where the reason for the trade is no longer valid. E.g. trading a support bounce the stop goes below the support.

2. AccountBalance * percent/100 = RISK = OrderLots * (|OrderOpenPrice - OrderStopLoss| * DeltaPerLot + CommissionPerLot) (Note OOP-OSL includes the spread, and DeltaPerLot is usually around $10/pip but it takes account of the exchange rates of the pair vs. your account currency.)

3. Do NOT use TickValue by itself - DeltaPerLot and verify that MODE_TICKVALUE is returning a value in your deposit currency, as promised by the documentation, or whether it is returning a value in the instrument's base currency.
             MODE_TICKVALUE is not reliable on non-fx instruments with many brokers - MQL4 programming forum 2017.10.10
             Is there an universal solution for Tick value? - Currency Pairs - General - MQL5 programming forum 2018.02.11
             Lot value calculation off by a factor of 100 - MQL5 programming forum 2019.07.19

4. You must normalize lots properly and check against min and max.

5. You must also check FreeMargin to avoid stop out

Most pairs are worth about $10 per PIP. A $5 risk with a (very small) 5 PIP SL is $5/$10/5 or 0.1 Lots maximum.

[Eugen Funk]

Eleni Anna Branou:

Yes, this affects all retail clients of Australian brokers, from the end of March onwards.

Thank you!

Do you know What countries/brokers will continue to offer high leverage?

[Eleni Anna Branou]

Eugen Funk:
Thank you!

Do you know What countries/brokers will continue to offer high leverage?

Some have opened subsidiaries in other countries to continue offering higher leverage.

As far as I know those brokers that aren't regulated by US, EU, UK, AU and JP authorities are stil offering higher leverage.

[ffoorr]

This will only affect the number of order you can take at the same time. And only that.

It will not affect the performance of the EA properly coded

I think it aim to protect beginner trader, to avoid them to blow account

 1/500 leverage are useless

[Joe Varcoe]

Eugen Funk:
Hi, my broker will get forced to set the max leverage to 1:30 after 29th march (Australian ASIC). 

I am wondering how many MT user will get affected by this and if we have to expect reduction of valuable EAs and signals?

Best

Yes I was affected, but luckily, most brokers are opening branches in other countries in order to maintain the leverage they used to offer. Check with your broker to see if they have such a new offering.

[amando]

The problem is, its not 1:30, it goes down to 1:1 on some instruments.

[Nor Azman Bin Ramli]

I'm using Australian broker but I'm not affected by this new regulation because I register the same broker but under FSA (for global clients) instead of ASIC.

[Young Ho Seo]

This is such a big move from 1: 500 to 1:30. 

I guess that some might think it is frustruating and some might be not bothered. :)

Interesting topic though.