Esma bans binary options, cracks down on CFDs

New measures aim to improve security and protection for retail FX investors

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Safety first: European regulator says up to 89% of retail accounts in the EU have ended up with losses

The European Securities and Markets Authority (Esma) has ploughed ahead with a ban on binary options and implemented a set of restrictions on contracts for difference (CFDs) offered to retail investors.

The regulator proposed the measures in January and finalised its decision on March 27.

The rules will have a significant impact on retail brokers offering CFDs, as they will impose strict limits on the maximum leverage ratios clients can take.

While tightening up regulations surrounding CFDs

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