Tips for beginner binary options trading

The AFM has been warning consumers for some time about binary options and the leverage effect of Contracts for Difference (CfDs). It often involves financial instruments with a large leverage as a result of which the investor could sustain considerable losses, such as the case with CfDs.

Moreover, new European regulations (MiFID II) are expected in January 2018, which will make it possible to impose stricter requirements on high-risk investment products for consumers.

The advertising ban will also apply to providers who operate in the Netherlands on the basis of a European passport. The AFM works together with other European supervisors to prevent aggressive providers from entering the European market.