CFD Restrictions in the EU – what it means for affiliates
IQoption would like to remind you that CFD restrictions for retail investors in the EEA* (European Economic Area) start to apply from August 1st.
If you haven’t made changes to your traffic sources in accordance to the new ESMA measures yet, we urge you to take the following steps during the remaining 5 days:
Replace the IQOption promo materials you use with the updated versions that include an amended risk warning and check the Promo section on August 1st as there will be more updated banners available by then;
Determine which of the scenarios described below applies to you and add relevant information to all resources mentioning 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 a 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, such as English, Spanish, Portuguese, 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:
All of the EU countries (Austria, Belgium, Bulgaria, Croatia, Republic of Cyprus, Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Ireland, Italy, Latvia, Lithuania, Luxembourg, Malta, Netherlands, Poland, Portugal, Romania, Slovakia, Slovenia, Spain, Sweden and the UK) and Iceland, Liechtenstein and Norway.