CySEC finishes with Forex bonuses and binary options. Lewar 1: 50?

Today, CySEC, i.e. the Cypriot financial supervision, has issued a message about the changes that are coming into force and will primarily hit Market Maker brokers offering trading in Forex and binary options. The brokers have until January 30, 2017 to comply with the new regulations. What's in them? First of all, no bonus offers are allowed. These changes are the result of a statement issued by ESMA, which we wrote about last month HERE.

100% deposit free? End of it. 

Bonuses, a powerful marketing tool for which binary options brokers and Forex brokers in the MM model are famous, are to disappear. CySEC requires CFDs, Forex and binary options brokers to stop promoting bonuses and launching new campaigns today (but they can still award them to clients for now). Brokerage companies are also required to inform by e-mail about past bonus actions and their conditions by 14 December.

Limitation of leverage to 1: 50

You can breathe a sigh of relief - it will not be so bad. Cyprus, which is considered the cradle of high leverages on the Forex market, will remain so, but ... Until recently, one of the main features of the offer that was sought after by traders choosing Cypriot brokers was high leverage. The brokers themselves clearly advertised this benefit, informing about the possibility of opening an account with a leverage of 1: 500 and more. During the account opening process, by default, the leverage was set to the highest (usually 1: 500) - this is about to change. Regardless of the range of leverage offered, the default value will be 1:50, and choosing a larger leverage will require passing a mini-test of knowledge about leveraged markets. This is primarily to help reduce the risk of unaware traders for whom CySEC believes high leverage is extremely dangerous.

CYSEC COMMUNICATION