France’s AMF notes rising number of clones of binary options brokers

France’s financial markets regulator AMF today issued a warning concerning the growing trend of companies abusing the details (such as names, images, website details, etc.) of authorized providers of binary options services.

The French watchdog notes that this practice has affected UK Forex and binary options brokers and that it is very hard to detect.

The AMF reminds investors that trading in such products is highly risky and that even if traders choose an authorized provider, the chance of losing their investments is high. According to a study conducted in France, 89% of clients of Forex, CFD and binary options brokers suffered losses in the period from 2009 to 2012. The average loss is EUR 10,900.

The watchdog warns investors that recovering one’s funds or getting a compensation is hard, and often impossible.

You can view the full text of AMF’s warning by clicking here.

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