The Cyprus Securities and Exchange Commission (CySEC), Europe’s regulator with largest list of forex, CFD and binary options brokers under its supervision, has reminded its charges that the advertising of such products in France is forbidden.
In a document signed by CySEC’s chair Demetra Kalogerou the watchdog notes that investment firms shall not address, directly or indirectly, by electronic means, marketing communications any person who can qualify as a retail investor with regard to financial products that fall into any of the three categories of derivatives with the following characteristics:
1) The maximum risk is unknown at the time the contract is entered into;
2) The risk of loss is greater than the amount initially invested;
3) The risk of loss compared to the potential advantages is not reasonably understood with regard to the particular nature of derivative.
Further, CySEC recommends its charges to seek more details on the website of France’s regulator AMF and consult a lawyer regarding the necessary legal actions required to ensure compliance with AMF’s legislation.
Cyprus is the most popular European destination for forex and binary options brokers who seek regulation that would allow them to operate across the continent under the MiFID passporting rules. The CySEC is less strict than UK’s FCA and obtaining a license from it is easier. Major forex brokers who have a Cyprus license include FxPro, XM, Trading 212, HYCM, Fibo Group, Windsor Brokers, FXTM, easyMarkets, EverFX, etc.