The times they are a changin: Copy Trading, Cryptos & the Regulations.

So #ESMA recently changed their regulations and banned Binary Options now in Europe. That´s a good thing because new “naive” Traders were fascinated by this Industry of Scammers and mostly lost all of their investments. Fast money, fixed payouts… “280 Euros in 30 Seconds…” Yeah sure…
So even if you did make money in the long run you couldn´t be sure about your withdrawals. Novice Traders thought that regulated Brokers would pay them out. But in fact those regulations were kind of worthless because the whole industry is and was a sh*thole of B-Books. You always had a conflict of interest with your Binary Broker. And not only that they also had latency issues, manipulated your entries and so on.
But that ended now luckily… No more industry… No more problem.

So what about you Binary Option Traders now? If your strategy worked it will most definitely work out in Forex. Maybe you have to change some rules. If you were really profitable long-term in BO you have a good chance to be profitable in Forex long-term.

But the #ESMA is also looking to regulate CFD´s and Forex. They will change the Leverage for new Investors (Accounts) in the next months to 30:1 for the main pairs and 2:1 for Cryptos. Is that good? Yeah I think so. Because no advanced Trader who is serious about Forex will ever use a Leverage of 500:1 and risk that much of a drawdown constantly. Of course you will need more money to start with but that´s fine, because most definitely people are going to realize that Forex is long-term and that will help the whole industry.
ESMA changed the Leverage accordingly to the liquidity of the “products”. And with the right liquidity the volatility changes accordingly. Also for Cryptos we will see some changes in the next months and years. Governments will try to even “more” regulate them and somehow make them more accesable. More Cryptos will team up with Banks or bigger Companies and that can only be good in the long term. Also Banks for example will use the technology behind it and even that will change the way we use money in the future and therefore the markets in general.

Trading will always be fascinating and it´s changing all the time. So you gotta be careful out there and watch not only the market itself (constantly) but also keep an eye on your strategy in the long run. The big players won´t make it easy for you to get their money. They will change certain patterns over time and you need to apply them to your own trading.

Safe Trading everybody.