London-based online trading firm CMC Markets Plc (LON:CMCX) launched its new limited-risk CFD account in France.
The new account has been launched to comply with new regulatory rules from the French regulator (AMF), and is designed to best serve clients’ interests.
Every new client opening a trading account with CMC Markets will now be able to limit their potential loss to the initial investment made.
Guilhem Tranchant
Guilhem Tranchant, Head of CMC Markets France, commented:
This new account follows the enforcement of the Law Sapin 2, but above all respects our clients’ best interests, which is always a key priority.
CMC Markets has created a protected account where losses are restricted to the initial investment (excluding trading costs) for every new position taken on the markets.
In order to facilitate this, a guaranteed stop-loss order (GSLO) will automatically be linked to every new trade placed. This means that the maximum risk for every position will be limited to the initial investment (the required margin), excluding trading costs. Clients pay a premium for GSLOs and this cost is the same on a limited-risk account as it is on a standard account.
Once a trade is placed, the client can only reduce their maximum potential risk, and this is done by modifying the GSLO level.
Opening a limited-risk CFD account with CMC Markets will allow clients to take a position on more than 1,500 instruments, including indices, commodities and stocks, while restricting any potential loss to the initial investment made for every single position, excluding trading costs.
Existing CMC Markets clients who do not have a limited-risk account will be able to request to be migrated to the new account by contacting the French Client Management team by sending an email to [email protected].
In addition to the risk limitation offered by this new account type, investors will be able to develop their knowledge and learn more about risk management and the financial markets. CMC provides every investor a free, comprehensive offering of training material comprising seminars, webinars and conferences, by subscribing online at its new French website.