Paul P460 Roberts

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What is MiFID II regulation and how does it affect traders?

MiFID II (Markets in Financial Instruments Directive II) is a European Union law that standardizes financial regulation across member states. It enforces transparency, investor protection, and market integrity. For forex traders, it introduced leverage caps (1:30 for majors), mandatory risk warnings, and restrictions on bonuses. It also ensures brokers provide best execution policies and report trades for monitoring. While some traders dislike leverage limits, MiFID II improves safety and reduces the chance of retail clients losing excessive capital. It is a cornerstone of European financial regulation.