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FCA warns CFDs traders of high-pressure techniques to be labelled professional clients
UK financial regulator The FCA has issued an interesting warning to people who invest in Contracts for Difference (CFDs), urging them not to give up vital consumer protections by the FCA, when they are defined as “retail” traders. The regulator added that in the coming months, the FCA will launch a consultation around client categorisation to ensure the right protections apply for the consumers who need them, and create more freedom for those professional investors who don’t. CFDs are a way to bet on the price of a share or asset moving up or down without owning it. The FCA is concerned that CFD brokerage firms ... (full story)