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EMSA Restrictions - IQOption warning

ESMA Restrictions guide for affiliate marketers.

The first deadline set by ESMA is already approaching, so it’s time for IQOption to share a guide on how you can prepare for the new regulation on the provision of binary options, digital options and CFDs to retail investors in the European Economic Area* (EEA).

As a quick reminder, the binary and digital options ban for the EU retail clients will come into effect on July 2nd and the restrictions on CFDs — on August 1st, so it’s important that you:

  • Stop promoting binary and digital options in EEA from July 2nd;
  • Replace the IQ Option promo materials you use with the updated versions that include an amended risk warning by August 1st;
  • Make relevant adjustments to your traffic sources, as described below, if there are any mentions of binary options, digital options or CFDs.

Binary and digital options

Scenario 1 — if your website or any other resource promotes binary options in a widespread language, such as English, Spanish, Portuguese, etc. (i.e. used not only in the EEA countries), you must put the following disclaimer on the main page of your website and at the beginning of every page that mentions binary options:

“Binary options are not promoted or sold to retail EEA traders. If you are not a professional client, please leave this page.” OR “Binary options are prohibited in EEA” if there isn’t enough space on the page.

If you promote digital options, please use the same disclaimer after replacing the words “binary options” with “digital options”. If you promote both types of options, the disclaimer should say “binary and digital options”.

Scenario 2 — if your website is in a language that’s used exclusively in countries with EEA membership such as Swedish, Polish, etc., in addition to the measures specified in Scenario 1, make sure to place the same disclaimer under or near all the registration links for all the materials that mention options.

Scenario 3 — if your traffic source is in a language that is not commonly used in the EEA countries, such as Bengali, Hindi, Thai, etc., there is no need for any specific adjustments.

IQOption urge you to use geo-targeting to make sure that visitors whose IP addresses are located in EEA can’t access websites dedicated to binary and digital options and pages promoting these products, or that they see a prominent warning stated above on these pages.

It should be noted that the ban applies only to binary and digital options. IQ Option is developing a new product that doesn’t fall under ESMA restrictions — FX options. Stay tuned for the official launch announcement.

CFDs

The following IQ Option products fall within the scope of restrictions: CFDs on Stocks, CFDs on ETFs, CFDs on Commodities, CFDs on Currency Pairs (Forex), CFDs on Cryptocurrencies.

Scenario 1 — if your website is in a language that is used exclusively in a country with EEA membership, such as Swedish and Polish, by August 1st you must include the following disclaimer in reviews, broker comparisons and other pages with room for a longer warning:

“CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. Between 74-89% of retail investor accounts lose money when trading CFDs. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money”.

If there is not enough space for a prolonged risk warning, use this one: “Between 74-89% of retail investor accounts lose money when trading CFDs. You should consider whether you can afford to take the high risk of losing your money.”

If you’re promoting CFDs with multiplier, update the information about leverage limits on opening positions by retail clients in Europe which vary according to the volatility of the underlying:

  • 30:1 for major currency pairs (EUR/USD, USD/JPY, GBP/USD, AUD/USD, USD/CHF, NZD/USD and USD/CAD);
  • 20:1 for non-major currency pairs, gold and major indices;
  • 10:1 for commodities other than gold and non-major equity indices;
  • 5:1 for individual equities and other reference values;
  • 2:1 for cryptocurrencies.

Scenario 2 — if your website is in a language that’s used not only in the EEA countries, please make sure to add the following information to your reviews, articles and other marketing materials: “Please be advised that certain products and/or multiplier levels may not be available for traders from EEA countries due to legal restrictions”.

Scenario 3 — if your traffic source is in a language that is not commonly used in the EEA countries, such as Bengali, Hindi, Thai, etc., there is no need for any specific adjustments.

*Countries in the European Economic Area

Austria, Belgium, Bulgaria, Croatia, Cyprus, Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Iceland, Ireland, Italy, Latvia, Liechtenstein, Lithuania, Luxembourg, Malta, Norway, Poland, Portugal, Romania, Slovak Republic, Slovenia, Spain, Sweden, The Netherlands, United Kingdom