CMC Markets launches limited-risk CFD account to meet regulation in France

CMC Markets launches limited-risk CFD account to meet regulation in France

Do not invest more money than you can afford to lose.


Forex and contracts for difference (CFDs) broker CMC Markets (LSE:CMCX) said on Tuesday it has launched a limited-risk account for contracts for difference (CFDs). The broker will automatically link a guaranteed stop loss order to each position.

The new offering is available to all new customers opening an account with the broker. Existing clients can also take advantage of the new service and request to open such an account.
The new account type is a logical response to the Sapin II law implementation and aims to serve the best interest of clients, according to Guilhem Tranchant,  CMC Markets France’s managing director.

The AMF imposed recently a limitation to brokers to offer a guaranteed stop loss execution and negative balance protection if they want to operate in the country. In addition, the regulator banned advertisement and marketing of risky trading instruments, such as binary options and CFDs. All these new requirements are part of the Sapin II law and refer to the retail market.

The limited-risk account will enable clients to limit their potential loss to the amount of their initial investment in each position they open. The amount, however, does not include trading costs. The broker did not specify whether the new trading account will be available exclusively to French clients or it will be offered across all markets where it operates.

CMC Markets holds a license from the UK’s Financial Conduct Authority (FCA). It is also registered across several countries in the EU, including with France’s Autorite des Marches Financiers (AMF). The brokerage serves retail and institutional clients and has offices in 14 countries with a focus on the markets in the UK, Australia, Germany and Singapore. It offers trading in forex, CFDs,commodities, indices, shares, etc. It got listed on the London Stock Exchange (LSE) in February 2016, raising about £218 million.

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