France has long been going to impose a ban on advertising binary options and Forex, but so far the law has not been adopted. There are several reasons for this, the main one is doubts about how to determine a safe level of leverage, and there is no information about which levels the management considers.
Some banks in European countries, including France, work with products with a leverage of 1:300. And the question of whether they will be closed due to the fact that the level of leverage is high remains open again. And again, there are reasons for this. If you close such products, then turbo trading automatically becomes impossible. And if you offer leverage of 1:35 on these products, say, as some banks do, then their volatility increases dramatically and they become dangerous for investment.
These tools are in great demand in Europe, and it will be very difficult to ban them within the existing regulatory framework.
However, if regulators want to limit leverage, they should treat retail brokers and retail banks equally. Restricting competition in this segment will certainly lead to worsening conditions for European traders.
