Question: What happens to my CFD account by the FCA's new restriction on leverage and bonus?
FCA, the financial authority in UK has proposed a package of measures on CFD products to all UK licensed brokerage firms.
*FCA – Financial Conduct Authority
There are mainly 4 measures proposed in November 2016, and there will be following changes on investors’ side.
- If you don’t have an experience of active trading for over 12 months, the maximum leverage on CFD product will be restricted up to 1:25.
- If you have an experience of active trading for over 12 months, then the maximum leverage on CFD product can be increased up to 1:50.
- All bonus promotions to promote CFD product will be unavailable.
Regarding to your trading experience, you will be asked to answer so the leverage limitation will actually depend on your answer.
Also all bonuses are banned on CFD product, but bonuses will be ran as usual for Forex(Foreign Exchange) products.
The measures taken by FCA in 2016 on CFD products only includes the above.
For more information, you can find them in the official website of FCA as below.
For the list of currently available Bonus Promotions, please visit the page below.
