In the wake of a number of surprise market events that left traders with negative account balances, local regulators have been moving to reduce or even out rightly ban binary and spot FX trading offerings from Brokers.
France’s Autorité des Marchés Financiers (AMF) last August released its proposed ban on advertising of derivative products in the ‘Sapin II’ bill on transparency under Article 28. It has stated that highly speculative and risky financial contracts can no longer be advertised to individuals via electronic means. They have also introduced leverage limits to less than 5:1, meaning an end to binary and spot fx trading, opening up opportunities for brokers offering Contract For Difference (CFD) instruments.
Following the French announcement, Belgium went a step further and banned all leveraged forex, CFD and binary options trading. Belgium’s Financial Services and Markets Authority (FSMA) have not just banned advertising but also the sale of these services to Belgians. Other European country regulators and UK’s Financial Conduct Authority (FCA) may not be far behind. The Netherland’s Finance Minister, Dijsselbloem, announced he will be working in close collaboration with local regulator, Netherlands Authority for the Financial Markets (AFM), on also banning advertising on what they have termed toxic products.
What this means for the binary industry is essentially a death knell; however CFD providers that have always acted in the best interests of their clients will continue business as usual. As one of the longest running CFD providers, easyMarkets, welcomes the tighter regulation encouraged to protect consumer interests. CEO, Nikos Antoniades, says: “We’ve always been in this for the long-term and unlike some others that have their eye on the short-term gain, we are about building real relationships with our clients and you can only do that through trust and transparency”.
While other brokers came asunder during the SNL unpegging of the CHF from the EUR, easyMarkets was able to guarantee negative balance protection and no client lost more money than what they had defined as their risk capital. The very basis in which the way the Company has always offered its services is with client protection in mind. And this is what will enable them to continue offering their services under tighter regulatory environments. Clients have always pre-set their stop loss position, and they cannot shift the limit to be greater than their available trading balance, both key requirements of the new regulations coming in. Preceding even the regulators, easyMarkets has offered free guaranteed stop loss for years and offered the most transparent pricing through fixed spreads.
More recently, easyMarkets has been promoting even more risk management tools designed to give even more control to their traders. The latest feature, dealCancellation*, enables traders to cancel a losing deal up to 60 minutes and have their money returned to their account balance. Clients have enthusiastically embraced this new feature as it gives them the confidence to trade even during volatile market events like the Brexit referendum and US election in 2016.
Risk warning: Forward Rate Agreements, Options and CFDs (OTC Trading) are leveraged products that carry a substantial risk of loss up to your invested capital and may not be suitable for everyone. Please ensure that you understand fully the risks involved and do not invest money you cannot afford to lose. Our group of companies through its subsidiaries is licensed by the Cyprus Securities & Exchange Commission (Easy Forex Trading Ltd- CySEC, License Number 079/07), which has been passported in the European Union through the MiFID Directive and in Australia by ASIC (Easy Markets Pty Ltd -AFS license No. 246566).
dealCancellation© Option is an ORE patent pending under the patent “Easy Cancellation Option” application number 62334455.
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