Germany’s Federal Financial Supervisory Authority has introduced new rules for advertising. However, it won’t change anything for Plus500.
New advertising regulations from (BaFin).
The German Federal Financial Supervisory Authority (BaFin) has made an unexpected announcement about changes to the advertising regulations. In particular, we are talking about the rules for advertising trading financial contracts for difference (CFDs). The general idea is to protect retail customers from a negative balance of risks. CFD trading has always been associated with a high risk of additional losses. Particularly difficult in CFD trading are factors that may seem insignificant, but ultimately have devastating consequences.
Plus500 will not be affected in any way.
In response to this ruling, Plus500 has issued a statement of full support for the decision of the German Financial Supervisory Authority. According to the company, Plus500 will not lose in customers in any way, as it has always had negative balance protection. Well, quite commendable. Can this be considered an example of advertising already by Plus500 itself? This question is more rhetorical. However, those who are least dependent on changes in conditions on the part of the regulator always survive in the market.
