Essential

ESMA

European Securities and Markets Authority - EU-wide regulator setting rules for all member states.

Definition

ESMA (European Securities and Markets Authority) is the EU's financial markets regulator that sets rules implemented by national regulators (FCA, CySEC, BaFin, etc.). In 2018, ESMA introduced strict leverage limits and banned binary options for retail traders across the EU.

How It Works

Sets EU-wide rules implemented by national regulators
Leverage caps: 30:1 forex, 20:1 indices, 2:1 crypto
Mandatory negative balance protection
Risk warnings required on all marketing

Trading Tips

ESMA rules apply to all EU/EEA regulated brokers

Professional clients can access higher leverage

Rules designed to protect retail traders from losses

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