#400: New ASIC Regulations and How They Affect Forex Traders

Online Forex Trading Course

New ASIC Regulations and How They Affect Forex Traders Podcast: #400: New ASIC Regulations and How They Affect Forex Traders In this video: 00:24 – I’m joined by Ben Clay from Blueberry Markets 00:43 – Why are ASIC making these changes? 01:43 – If you have more experience, will these levels change? 03:12 – How does this affect Australian traders? 04:00 – How will these changes affect non-Australian traders? 05:35 – I’m looking for a new broker. Can I join Blueberry? 06:11 – What should you look for in a good Forex broker? 07:36 – Can a trader contact you directly? 09:21 – A goal to help people succeed Andrew Mitchem: There are new changes coming from the Australian regulators affecting us as Forex traders. So let's discuss how that's going to change things with the Australian brokers. Let's get into it right now. Andrew Mitchem: Hi traders, Andrew Mitchem here at the Forex Trading Coach with video and podcast number 400. I’m joined by Ben Clay from Blueberry Markets Andrew Mitchem: And today we're joined by Ben Clay from Blueberry Markets to discuss the upcoming changes through ASIC and how it's going to affect us as traders, whether we be in Australia or overseas. So Ben, welcome, great to have you here today. Ben Clay: Thank you, Andrew. Thanks very much. Why are ASIC making these changes? Andrew Mitchem: So Ben, we're here about these changes out of ASIC, so it's the Australian Securities and Investment Commission. So can you tell us how is this likely to affect us? And first of all, why are ASIC making these changes? What is it that they're doing and why are they doing it? Ben Clay: Sure. So essentially the changes are mainly to protect traders at the end of the day, especially new traders coming on board. There's a lot of new traders that come into brokers on one to 500 leverage, the maximum leverage that can be offered and that's just too much risk for someone who doesn't know anything about the Forex markets to be trading on. So these changes is to try and help new traders get a better understanding and trade on much lower leverage, which will be one to 30 for Forex pairs. So they can get an understanding of how the products works before jumping into higher leverage. Andrew Mitchem: Okay. So it's mainly about leverage and protecting some of those newer traders. Ben Clay: Absolutely. If you have more experience, will these levels change? Andrew Mitchem: That's one of the reasons. So does that mean that once someone understands risk and they've been through trading for a while, things can change, or is that leverage that you just mentioned pretty much set? Ben Clay: No, that's exactly right. So when a client has a bit of experience and has some trading history, they can actually become what's called a sophisticated trader. So there'll be some extra parameters that they have to go through, which we'll send out to our clients in the next month, but it will basically almost be a test to show that they understand the markets and that they clearly understand the risks of when it comes to Forex trading. Like myself, I trade on high leverage. It's just a way that I prefer to trade. So, me, myself, I would want to be listed as a sophisticated investor so I can have that as an option to trade on much higher leverage. Andrew Mitchem: Right. So it's about educating the client as well. So they're not just going in there gambling and throwing it all away, and then all goes wrong. Ben Clay: Exactly. That's exactly right. And at Blueberry, that's something that we're really passionate about is making sure that our clients understand the risks, and people like yourself as well, who are out there educating clients so they're not coming in and blowing up an account right off the bat on massive leverage. Andrew Mitchem: Yeah. So you're teaching them about low risk and how to trade carefully and properly rather than the people that think they're going to doub...