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#1 05-06-2019 13:39:04

Admin & Trader
From: Paris - France
Registered: 21-12-2009
Posts: 3068

New ESMA rules have increased trust of the forex market in Spain

New ESMA rules have increased trust of the forex market in Spain

Known for its bullfights and beautiful women, Spain is Europe's 4th largest economy. After diving into a recession due to the housing crisis (excessive homes built in the last decade), the nation is now back on track to enjoy a healthy economy. 

Spain's markets

Spain's exchanges are dominated by shares and also feature derivatives and interest rate products. The share exchange located in the nation's capital remains the biggest of Spain's 3 share markets. 

Spain's main share index is the IBEX35, which features the country's largest publicly listed companies. 

ESMA rules have contributed to trust in the nation's forex activities

In terms of financial assets (also consisting of currency pairs), Spain's regulatory agency is the NCVM. But, as the nation is a European member-State, local brokers have to adhere to ESMA regulations as well.

Of the ESMA's biggest rules affecting Spain's foreign exchange: margin restrictions on various asset classes and the prohibition of option trading (both vanilla and otherwise).

Of course, other European nations are also affected by the new rules. As a result local brokerages have witnessed decreasing income due to reduced trading activity.

Top Spanish brokerages

Thanks to Spain's European membership, Spanish traders are able to trade with other EU companies (such as HF Markets, Plus500, etc. However, what brokerages are leading the market as far as trades and lot sizes are concerned?

DIF Broker, a Portugal-based company is the leading brokerage.

What is the typical trader in Spain like?

Apparently, the biggest forex asset is the EURUSD - due to the fact that it is the world's most traded pair.

According to an analyst over at eToro: "Spanish traders are typically men in their late 20s, usually with a university degree. In addition, traders with less money invested typically don't diversify their holdings as much."

"Less than 15% of traders trade with margin, and they typically restrict themselves to just a few different forex pairs. In addition, crypto assets such as Bitcoin are also quite popular with Spain's traders", he added.

There, a majority of trades tend to be shorter, with long-term holdings usually reserved for more experienced and wealthier traders.

"Anything worth having is worth going for - all the way." - J.R. Ewing



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