ESMA issues warning to retail investors on trading in foreign exchange (forex)

Dec 5, 2011

The European Securities and Market Authority (ESMA) issued on December 5th, 2011 a warning to retail investors on trading in foreign exchange (forex) products based on an evidenced increase, in some EU countries, of unauthorized firms offering transactions or platforms to trade in currency derivatives in the forex market, such as ‘contracts for difference’ [CFDs], ‘FX forwards’, and ‘rolling spot contracts’.

In order to enhance the protection of investors, ESMA warns investors against dealing with unauthorized firms offering foreign exchange investment as well as alerts retail investors to the main risks involved in forex trading.

In order to read the full ESMA’s warning on trading in forex click here.