CySEC bans trading bonuses, sets max default leverage to 1:50
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Thread: CySEC bans trading bonuses, sets max default leverage to 1:50

  1. #1
    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.

  2. #2
    Quote Originally Posted by ;
    The Cyprus Securities and Exchange Commission (CySEC)https://smnweekly.com/2016/11/30/cys...verage-to-150/ In nature the new rules concern all forex and binary choices brokers regulated by the CySEC. In its round the Cyprus regulator claims that the brokers must prevent the custom of offering bonuses which are designed to incentivise...
    Hello, Mr. MLawson71.

    Thank you very much for your own information.

    Do you konow anything concerning the withdrawal processing conditions they're speaking about?

    Expecting hearing from you as soon as possible,
    MrJinks.

  3. #3
    Quote Originally Posted by ;
    In its circular the CySEC also sets a rule that in case of a positive cash balance in a customer's account brokers must process the customer's fund withdrawal petition on precisely the same day it was created, or the next working day if the customer's request is received outside of regular trading hours.
    I liked this. No more delays or excuses.

  4. #4
    When will this be set in action? Or is it yet anyhow ?

  5. #5
    There has to be something wrong here, simply look at this:

    http://www.xm.com/account-types

    Registered in Cyprus, around 888% leverage , special year end trading bonus of 100% etc.. . And this is only one example among several more.

  6. #6
    Quote Originally Posted by ;
    There has to be something wrong here, simply consider that: http://www.xm.com/account-types Registered at Cyprus, up to 888% leverage , particular year ending trading bonus of 100 percent etc.. . And this.
    Nothing incorrect. Check the calendar, partner.

    From mlawson71s link:
    Quote Originally Posted by ;
    In conclusion, the CySEC gives the forex and binary alternatives brokers until January 30, 2017 to choose the right steps and actions in order to operate with all the new rules.
    BTW: the leverage would continue to be legal. It's just the default leverage that has to be put to 50, the broker can still offer you a greater one but the customer will have to set that manually.

  7. #7
    The Cyprus Securities and Exchange Commission (CySEC)https://smnweekly.com/2017/03/17/cyp...es-constitute/ The ruler offered specific examples of the types of bonuses banned from being offered. Are Volume Bonus, Welcome/Deposit/Re-deposit bonusa Friend Bonus, Tournament/Competition bonuses and a few others.

  8. #8
    Quote Originally Posted by ;
    The Cyprus Securities and Exchange Commission (CySEC)https://smnweekly.com/2017/03/17/cyp...es-constitute/ The agent gave specific examples of the types of bonuses banned from being offered. One of these are bonus, Volume Bonus, Refer a Friend Bonus, Tournament/Competition bonuses and a number of others.

  9. #9
    I read that cysec need to prohibit Ibs and affiliates also because they operate and mislead clients.

  10. #10
    I have red that also here: http://financefeeds.com/live-cysec-c...tely-lambasts/
    they're also talking ban for binary options. Interesting read. Some questions are raised by it however.

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