Do not invest more money than you can afford to lose.
CMC Markets, one of UK’s major forex, CFD and spread betting broker that is a market leader in Germany, said it welcomes the decision of BaFin to introduce the mandatory negative balance protection requirement for CFDs for retail clients.
In its brief statement, the broker notes it is already offering negative balance protection through its Next Generation trading platform and is therefore complying with the BaFin proposals. This means there will be no further changes for clients, including no regulator-imposed limitations on margins.
“CMC is pleased that the BaFin has maintained the scope of the consultation and the speed at which any regulatory uncertainty in Germany has come to a close”, the broker said.
Several months ago media reports claimed CMC Markets, which is currently based in London, was mulling to relocate to Germany, as a result from UK’s FCA intentions to set a leverage cap of 1:50 on CFDs. It is not yet clear what became of those plans, but FCA is still conducting consultations on the matter.
CMC Markets was set up back in 1989 and now it runs offices in 14 countries across the globe, focusing on the markets in the UK, Australia, Germany, and Singapore. The broker offers trading in more than 10,000 financial instruments, including forex, shares, indices, commodities and treasuries via its proprietary trading platform Next Generation.
