FCA warns on consumer risks in CFDs

The FCA is warning consumers not to give up protections if they invest in CFDs. It is concerned:

• that regulated firms are trying to pressurise investors to opt up to professional status which would mean they lose protections which stop consumers risking more than their original stake;
• at how many investors are being targeted by finfluencers who promise unrealistic returns and are often acting for unauthorised overseas companies, but do not make this clear.