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Forex / CFD ads in France with new regulations

Forex / CFD ads in France with new regulations

created Paweł MosionekSEPTEMBER 26, 2017

Regulating organization the Forex advertising market in France, or ARPP, has issued official guidelines for marketing activities related to Forex and CFD. The new regulations are closely related to the Sapin 2 Act, which introduced a total ban on advertising high-margin instruments such as CFDs or binary options. More about this ban we write in a separate article.

Read also: The MTF broker has a green light for promotion in France

Forex ads without radical changes

ARPP has not decided to implement ad-hoc solutions. The guidelines relate to three key criteria: transparency, honesty and social responsibility.

First of all, the ads should be easy to identify (easy to distinguish between content and advertising). In the same way, the advertiser itself should be explicit. The mere content of the advertisement can in no way suggest the lack of investment risk. Any suggestion that it is easy to make a profit on the Forex market has been banned.

The training and education sphere was also touched upon. Brokers and training providers can not suggest that the knowledge transferred in the form of offered courses will provide clients with knowledge at the level of professional investors.

ARPP included in the guidelines a ban on presenting trading on investment markets as a form of a game, or as an alternative to paid work, which may bring a certain, steady income or solve financial problems. The content should not convey "whitened" issues related to investment risk, which means that the possibility of loss of funds must be adequately exposed.

The last "news" is the ban on targeting Forex / CFD ads to people under 18 years of age.

A reasonable approach of the French

The introduced guidelines are not shocking, but in a reasonable and logical way they regulate the "mess" in the advertising field of the Forex / CFD market. Regulators from all over the world have repeatedly imposed financial penalties on Forex brokers for manipulating advertising content, knowingly misleading clients and concluding contracts unfavorable to traders. The use of unethical promotional activities among some Forex brokers caused the trust in the content to be significantly decreased. With appropriate, predetermined guidelines, there is a chance that this will change in the coming years.

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About the Author
Paweł Mosionek
An active trader on the Forex market since 2006. Editor of the Forex Nawigator portal and editor-in-chief and co-creator of the website. Speaker at the "Focus on Forex" conference at the Warsaw School of Economics, "NetVision" at the Gdańsk University of Technology and "Financial Intelligence" at the University of Gdańsk. Twice winner of "Junior Trader" - investment game for students organized by DM XTB. Addicted to travel, motorbikes and parachuting.

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