The Cyprus Securities and Exchange Commission (CySEC)https://smnweekly.com/2016/11/30/cys...verage-to-150/ In essence the new rules issue all Foreign Exchange and binary options brokers regulated by the CySEC.
In its circular the Cyprus regulator claims the brokers ”should prevent the practice of offering bonuses which are intended to incentivise retail clients to exchange in complied speculative items such as CFDs, binary options and rolling spot Foreign Exchange as it is not likely that a company offering such bonuses could demone it is acting honestly, fairly and professionally and in the best interests of its retail clients”.
CySEC notes the brokers supplying ”excessive leverage” to retail clients are most likely not doing it in the best interest of their clients, thus from now on all Foreign Exchange and binary options brokers should design their trading systems to set as default a reduce leverage and give them the choice, should they prefer, to change the leverage into a higher level. Further in its letter CySEC sets the default leverage as 1:50.
They also included several new rules about cash withdrawals.