The European Securities Markets Authority (ESMA) has just issued a clarification related to the use of bonuses by retail forex and binary options brokerages. The supranational regulator of Europe states that all bonus promotions used by brokerages that are tied to trading volumes are to be suspended.
National regulators are going to have to abide by the rules and monitor the implementation of the European MiFID law.
The elimination of bonuses that are tied to trading effectively eliminates one of the key retention and on-boarding tools
The ESMA justifies its opinion about bonuses by highlighting the psychological impact that a bonus may have ... (read more)