UK FCA Permanently Tightens CFD Trading Rules for Retail Clients

The Financial Conduct Authority has cemented strict new regulations on retail CFD trading, closing loopholes that allowed excessive leverage and misleading marketing. These are not temporary measures—the rules represent a fundamental shift in how derivatives are sold to UK consumers.

Platforms must now overhaul onboarding processes, risk disclosures, and product structures. The FCA's MOVE targets firms that repackage high-risk instruments under different names while using aggressive promotional tactics. Retail traders have faced catastrophic losses from poorly understood CFD products.

While the changes don't directly impact cryptocurrency spot markets, they signal broader regulatory scrutiny of leveraged financial products. Exchanges offering synthetic derivatives or margin trading should note the FCA's emphasis on client protection measures.