The Dutch financial markets authority has announced that it is to introduce a ban on the advertising of binary options trading and contracts for difference (CFDs) in the country.
In a statement on its website, the Autoriteit Financiële Markten (AFM) said the ban would help protect against activities that encourage “harmful investment” for some consumers.
The ban will apply to all Dutch operators as well as those active in the country on a European passport.
“We find it very important that an advertising ban is for binary options and other harmful investment,” AFM chairman of the board Merel van Vroonhoven said.
“The advertisements for these investments lure consumers with the prospect of earning quick money, but the reality is that you can easily lose your entire investment.”
However, Optieclub, the only licensed provider of binary options in the country, has hit out at the plans, with the company's attorney saying the proposed ban is no more than “window-dressing”.
The attorney added: “All necessary regulation to address misleading advertising already exists.”
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