Restrictions on CFDs and bans on Binary Options
New regulations issued by the Portuguese Securities Market Commission now restrict the trading of Contracts For Differences (CFDs) in Portugal and prohibit the sale and distribution of Binary Options.
These restrictions and prohibitions are applicable to retail investors and were triggered by the difficulty for these type of investors to understand the terms and conditions of CFDs and Binary Options, and by the risks associated with these financial products.
Binary options can still be sold to retail investors if the option fulfills specific conditions.
Regulation No. 5/2019 entered into force 3 July 2019 and is in line with ESMA decisions and rulings issued by other European regulators.