Brokers who provide leverage greater than 20:1 targeted.
The French regulators announced that the country will introduce a ban on online advertisement of forex and binary options. The ban will extend to other products that have leverage of greater than 20:1.
The move is in reaction to a report presented by the Autorite des Marches Financiers (AMF) - the financial watchdog - to the French Parliament which stated there was nearly 4 billion Euro of fraudulent losses to French residents over the past 6 years.
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If businesses are run with fraud as the main goal, the risks are that the free markets become more controlled. In this case, the inability to advertise for clients will likely put an end to retail forex brokers in France. If traders want to trade, they should be allowed to trade, but if the brokers are corrupt, regulators have no sympathy and they will penalize all.
