Forex trading and binary options trading is illegal now in France, “ForexSQ.com” experts say the French financial regulator (AMF) blocks all forex and binary options advertising in France.
Forex trading in France ban
According to AMF the France financial regulator all digital binary options trading and Forex trading advertisements in France will be ban but CFDs companies are still allow to advertise for Contracts For Difference trading in France.
The France financial regulator (AMF) says all the forex and binary options brokers want to operate in France must provide guaranteed stop loss and negative balance protection for their clients. The IG Group is the first company reacts to the new AMF crackdown.
IG Group updates over French Forex crackdown
IG Markets Provides an update on impact of new requirements from AMF, a supervisor of company’s activities, on advertising of its products in France.
IG’s accounts provide a limited loss-by-position guarantee as required, and therefore also a guarantee of no negative balance, Restrictions have no impact on current client base.
IG Index company does not believe these restrictions will have a material negative impact on its business in France in short term, Restrictions could ultimately enhance company’s future competitive position in country.
The FCA has estimated that 82pc of customers lose money, suffering an average loss of £2,200 in a year. News of the FCA’s plans sparked a sell-off in shares of IG and rivals CMC Markets and Plus500 company.
IG Group has a market share of about 40pc in the UK, but is much less reliant on France. Analysts at ForexSQ estimated today that France only accounts for about 5pc of IG’s revenues, compared with 51pc for the UK. They warned investors that the “FCA’s intentions remain the biggest risk to IG”. IG shares dipped 0.1pc to 530.5p in morning trade.