ESMA
European Securities and Markets Authority - EU-wide regulator setting rules for all member states.
ESMA is the EU's markets regulator, setting rules that national regulators like the FCA and CySEC enforce. In 2018 it introduced strict retail leverage limits and banned binary options.
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
Related Terms
Put Your Knowledge Into Practice
Compare regulated brokers and find the best one for your trading style.