ESMA Regulations
The European Security and Markets Authority (ESMA) announced new regulation standards for leveraged trading, which will come into effect on Wednesday 1st August 2018. Please find all details about the regulations and how your trading activities will be affected on this page.

About ESMA
In the beginning of this year ESMA proposed major changes to leveraged trading, which has been intensely discussed within the industry. FCA regulated brokers as well as their clients have been involved in the debate. In early May this year, ESMA announced the details about its new policy, which will come into effect on 1st August 2018. The key changes will be:
– Restricted leverage on spread betting, CFD and forex products,
– Raised stop-out levels to 50%,
– Negative balance protection.
– Restricted Leverage – ESMA Product Groups

Please find ESMA’s proposed leverage changes for each product group in the table below:

Negative Balance Protection

The new ESMA ruling will ensure that retail traders will not lose more than the money available on their account. If your retail trading account becomes negative, the provider (Cresco Capital Markets(UK) Ltd) will now be required to bring the balance back up to zero. This rule will be applied on 1st August 2018 across all retail CrescoFX trading accounts.

CrescoFX’s Products Listed According to ESMA’s Product Categorization

Below you will find a non-exhaustive overview of Cresco’s product offering and their new leverage requirements. They are listed based on ESMA’s product groups.

How Will These Changes Affect Your Trading Activities?

Below we would like to provide you some trading examples, which will help you to understand the new ESMA rules better.
The required margin will increase across all products and you will need to add additional funds to your trading account or manage your open positions to avoid being closed out at market.

Working Examples For Clients Trading on FX/CFD Trading Accounts

FX/CFD Account

*Please note that this was the market price at the time the example has been generated.

CrescoFX Professional Clients

The new ESMA margin changes will not affect CrescoFX’s Professional Clients.

In order to find out more about the requirements to become an Elective Professional Client with CrescoFX, please contact us on