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Trading & Products

ESMA Regulations

The European Security and Markets Authority (ESMA) is an independent European Union authority, founded in 2011. It has full accountability towards the European Parliament.

ESMA aims to protect investors and promote market order and stability by four activities:

  • Assessing risk to investors and market stability
  • Providing a single rulebook for all EU financial markets
  • Supervisory convergence
  • Supervising certain financial entities

What are the benefits of ESMA regulations?

One example of investor protection was Negative Balance Protection, making sure that trading partners (such as GKFX Europe) are required to bring back negative balance of clients back to zero.

EU financial authority also enforces stop-out levels of 50% as well as restrictions on leverage rates.

ESMA Restrictions on Leverage Products

GKFX Europe fully complies with the latest set of restrictions that ESMA enforces on CFD trading in order to better serve its clients.

  • TRADE PRODUCT GROUP
  • MAXIMUM ALLOWED LEVERAGE
  • Major forex currency pairs
  • 30:1
  • Non-major pairs, gold and major indices
  • 20:1
  • Commodities other than gold, non-major indices
  • 10:1
  • Individual equities
  • 5:1
  • Cryptocurrencies
  • 2:1

ESMA initially introduced these restrictions on August 1, 2018 and renewed the measures in 3-monthly intervals.

On GKFX Europe, you will find our trading platforms and leverage ratios always up-to-date with the latest regulations from ESMA.

For further information regarding the EU financial authority and the latest news, please visit their official website by clicking here.

GKFX Europe is a trademark and trading name of AKFX Financial Services Limited © 2019 AKFX Financial Services Limited – all rights reserved.

RISK WARNING

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 73% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. See our full Risk Warning and Terms of Business for further details.

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CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 73% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. See our full Risk Warning and Terms of Business for further details.

73% of retail investor accounts lose money when trading CFDs with this provider.