GCMAsia -New ESMA regulation and changes
Recently, European Securities and Market Authority (ESMA) has introduced new measures on Contract for Differences (CFD). Being a part of ESMA, FCA will concurrently endorse similar measures which will affect all retail clients in all trading platforms beginning 29th July 2018.
Leverage comparison between before and after new ESMA measures is introduced:
Impact on trading position
Clients with trading position opened before 29th July 2018 for instruments as listed below will not be affected by the new leverage limit.
However, stop out level will be increased to 50% instead of previous level of 20%. This may lead to involuntary closure of positions if the trading account failed to fulfill the new stop out margin requirement.
* A PLUS (+) sign will be added to the instrument and the instrument will only have close option only.
* Same instrument without the PLUS (+) sign will be available for trading with new leverage.
* Clients are required to cancel their order before 16:00 (GMT +0) on 27th July 2018 to avoid sudden changes in leverage.
* Any position opened after 29th July 2018 for above instruments will be subjected by new leverage.
* All open position for other instrument unless listed above will be affected by new leverage if it remained open on 29th July 2018.
Whether you are a new client or existing client, you will need to know some key information about your trading changes because of this ESMA new policy.
Following the recent changes, new GCMAsia clients that register for an account will be defaulted to Fortrade Belarus.
How to create a Fortrade Belarus account?
Introduction to Fortrade Belarus (NBRB)
Existing GCMAsia clients has the option to select Fortrade Belarus as their designated broker， which is authorized and regulated by National Bank of the Republic of Belarus (NBRB) with Firm Reference Number (FRN) of 193075810. Trading conditions under the governance of NBRB is compared below:
* Promotion includes giveaways such as USB drives, mug etc.
In order to attain qualified client status, you are required to fulfill the following requirements as laid out by NBRB:
*Application submission will be required via account manager.
Existing GCMAsia clients under FCA governance will be divided into two categories: retail client and professional client. Existing clients who want to keep their margin and leverage levels have two options:
1. Apply to become professional clients under Fortrade UK account, professional clients will not be subjected to restrictions following new measures taken by ESMA.
How to apply for Fortrade UK professional client?
2. Transfer account from Fortrade UK to Fortrade Belarus
How to transfer fund and attachment from Fortrade UK to Fortrade Belarus?
Comparison between Fortrade UK and Fortrade Belarus
Please note: clients need to close all their positions before start account transfer.
Frequently Asked Questions (FAQ)
1.What is ESMA and who is being affected by recent regulation changes?
ESMA is the abbreviation for European Securities and Market Authority, a European Union Financial Regulatory Institution and European Security Authority. ESMA works in terms of securities legislation and regulation to improve the financial market in Europe. Recent Financial Conduct Authority announcement to endorse similar measure taken by ESMA will affect ALL retails traders who hold trading accounts with brokers under the governance of FCA or ESMA.
2.Does NBRB provide capital compensation similar to UK’s Financial Conduct Authority’s Financial Services Compensation Scheme (FSCS)?
Unfortunately, NBRB does not provide capital compensation just like the FSCS under the governance of FCA.
3.How long does it take for my account to be transferred from Fortrade FCA to Fortrade BY?
The transfer process will take around 2 – 3 minutes while our representative will be assigned to verify your account as soon as possible.
4.What will happen to my account if I chose to initiate account transfer after the stipulated deadline?
After the stipulated deadline, ESMA new regulation will affect all open positions due to lowered leverage and higher stop-out margin. Any open position in your account may subject to involuntary closure due to failure to fulfil new trading conditions. Thus, it is advisable to initiate an account transfer before the deadline to avoid any issues.
5. Can I verify my Fortrade BY account without uploading a selfie photo with the ID?
Providing a selfie photo with the ID is a part of regulatory framework as laid out by the NBRB. Thus, clients who fail to provide a selfie photo with the ID will be unable to enjoy all the benefits of a BY account.
6.What will happen to the SWAP of my trading position after the migration process has completed?
All SWAP charges on trading position will be reset following the migration process.
- What does the “No Restriction” for Professional Clients under FCA governance refers to?
The “No Restriction” for Professional Clients under the governance of FCA applies to the recent changes made by the regulatory body. As such, all clients that falls under this category are not subjected to new leverage, stop out margin and no bonus restrictions.
- What is NBRB?
NBRB is the abbreviation used for National Bank of the Republic of Belarus. NBRB was established in the 1990s following the passage of banking rules upon Belarus’s declaration of independence from Soviet Union. NBRB is engaged in upholding policies and governance to ensure the financial stability of the Republic of Belarus.
- What is the Firm Registration Number (FRN) of Fortrade Belarus under the governance of NBRB?
The Firm Registration Number (FRN) of Fortrade Belarus is 193075810.
- Where can I check the license for Fortrade Belarus?
Fortrade Belarus licensed under the governance of NBRB and it can be checked by clicking here.
- What are the specific trading conditions for Fortrade UK and Fortrade Belarus following the recent changes?
Specific trading conditions under each regulation can be checked by clicking here
- Can I register more than one account under Fortrade BY?
Yes, you may register for more than one account under Fortrade BY with different email.
- What will happen to my account if I chose not to make any changes or transfer?
Your account will be subjected to the new measure as taken by FCA, in tandem with ESMA. Leverage will be lowered, stop-out margin level will be increased to 50% and there will be no bonus or promotion available for all retail clients.
- What will happen to my bonus in my old account at Fortrade UK after I initiate a transfer to my new account at Fortrade BY?
The bonus will be cancelled in the old account and will be granted to the new account after the transfer of funds from Fortrade UK to Fortrade BY account has been completed.
- According to GCMASIA’s World Cup Campaign, I will be able to enjoy bonus offer if I deposit before 31st August 2018. As ESMA forbids bonus for all accounts under the governance of FCA, what will happen to my bonus entitlement?
You will be able to enjoy the bonus benefits after registering for an account in Fortrade BY.
- What is the login process if I have accounts under two different regulations?
In the event whereby a client owns two account each from Fortrade UK and Belarus with the same email, a pop up will appear upon login to select the regulation type. Select your preferred regulation type to continue with the login process.