The UK Financial Conduct Authority (FCA) has proposed permanent ban on binary options, as well as permanent restriction on the sale, marketing and distribution of contracts for difference (CFDs) and similar products to retail investors.

In fact, the FCA is suggesting to make the measures introduced by the European Securities and Markets Authority (ESMA) permanent in the UK. More specifically, the FCA is proposing that forex brokers must apply the following measures regarding the Contracts-for-Difference (CFDs) sold to retail clients:

-leverage limitation of 1:2 to 1:30 by collecting minimum margin as a percentage of the overall exposure that the CFD provides;
-closing out a customer’s position when their funds fall to 50% of the margin needed to maintain their open positions on their CFD account;
-providing negative balance protection;
-stop offering monetary and non-monetary inducements to encourage trading, such as bonuses;
-provide a standardized risk warning, which requires firms to tell potential customers the percentage of their retail client accounts that make losses;

mlawson71 wrote: Tue Dec 11, 2018 1:14 am The UK Financial Conduct Authority (FCA) has proposed permanent ban on binary options, as well as permanent restriction on the sale, marketing and distribution of contracts for difference (CFDs) and similar products to retail investors.

It's not looking good for the Binary boys!

I can't say I am sorry to see them go, I have a very poor opinion of binary options and the brokers offering them.

It's the leverage part that irks me.