Darwinex to stop offering CFDs to new Spanish clients
Darwinex to stop offering CFDs to new Spanish clients
Darwinex, a prominent trading platform, has announced a significant change regarding the provision of Contracts for Difference (CFDs) to new clients in Spain.
This decision, effective from July 31, 2024, comes in response to regulatory measures imposed by the Comisión Nacional del Mercado de Valores (CNMV), Spain's securities market regulator. The new regulations necessitate Darwinex to restrict its CFD offerings to comply with the CNMV's resolution aimed at protecting inexperienced retail investors.
The CNMV's resolution, issued last July, introduced stringent intervention measures on CFDs to mitigate risks for retail investors who may lack the necessary knowledge and experience to trade these complex instruments. Darwinex, whose business heavily relies on CFDs and FX trading, acknowledges that it is challenging to prevent their branding and distribution from reaching uninformed Spanish retail clients. Consequently, the company has decided to halt the offering of CFDs to new retail Spanish clients and residents in Spain, both traders and investors, starting July 31, 2024.
It is crucial to note that this new measure does not impact all clients.
The following conditions exempt clients from this restriction:
- Existing clients with a real CFD account at Darwinex, whether as traders or investors in DARWINs.
- Clients who have completed the real account opening process before July 31, 2024.
- Clients categorized as professional clients with Darwinex.
While the decision to stop offering CFDs has been challenging, Darwinex is committed to complying with CNMV's regulations. To ensure that new clients still have robust trading opportunities, Darwinex highlights its integration with Interactive Brokers. This partnership provides access to a wide range of assets, including stocks, ETFs, and futures, for DARWIN accounts. Clients can also access an even broader universe of assets through the classic account, ensuring that new clients have diverse trading options despite the discontinuation of CFDs.
Darwinex reiterates its dedication to enhancing and expanding its trading offerings. The platform continues to work on providing more instruments and platforms to boost traders' experiences.
While Darwinex's decision to stop offering CFDs to new Spanish clients reflects a necessary compliance with regulatory measures, the platform remains committed to delivering high-quality trading services and expanding its asset offerings. This strategic move ensures that Darwinex continues to operate within regulatory frameworks while providing its clients with valuable trading opportunities.
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