Esma bans binary options, cracks down on CFDs

New measures aim to improve security and protection for retail FX investors

stop_ban_Getty.jpg
Safety first: European regulator says up to 89% of retail accounts in the EU have ended up with losses

The European Securities and Markets Authority (Esma) has ploughed ahead with a ban on binary options and implemented a set of restrictions on contracts for difference (CFDs) offered to retail investors.

The regulator proposed the measures in January and finalised its decision on March 27.

The rules will have a significant impact on retail brokers offering CFDs, as they will impose strict limits on the maximum leverage ratios clients can take.

While tightening up regulations surrounding CFDs,

To continue reading...

You need to sign in to use this feature. If you don’t have a FX Week account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an indvidual account here: