New rules seek to protect retail CFD customers amid high loss rates

With more retail customers opening and trading contract for difference products, the Financial Conduct Authority wants to bolster their protections. Indeed, there is good reason – scrutiny of a sample of client accounts for CFD firms by the regulator identified that 82% lost money on these products. The average result per client was a loss of £2,200. A review of retail CFD providers in 2015 raised concerns about the quality of appropriateness tests, risk warnings as well as money laundering checks these firms conducted.