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Autorité des Marchés Financiers (AMF) warned against the risks of FX trading as the number of investor complaints keep piling up.

Though AMF regulates various unauthorized Binary Option and FX providers, it has launched an initiative aimed at sensitizing potential investors about the probable risks of FX trading. Its study showed that nine out of ten traders tend to register losses. Its sample involved both Contract For Difference (CFD) and FX traders based in France.

AMF’s research also showed that during a 4-year period starting 2009 through 2012, the proportion of traders who registered losses was 89 percent. Each customer lost $13,800 (10,900 euros) on average.

An aggregate 13,224 clients registered total losses of almost $220 million (175 million euros), while the other 1,575 clients pocketed a total of $17.51 million (13.8 million euros).

Though most analysts don’t expect the study’s findings to trigger any major shifts in the FX industry, the research reaffirms the position that more traders should be educated on FX.

Meanwhile, leading retail FX broker FXCM announced Monday that its Australian subsidiary FXCM AUD will roll out an FX pricing model that will ensure raw spreads from liquidity firms will be displayed.

The trimmed spread structure will be compensated through a commission fee that will be paid per trade. The shift to a commission-based model is in line with an industry shift that allows customers to view raw spreads and separately pay the commissions, FXEmpire notes.

FXCM insists the costs of trading may be slashed by a maximum of 50 percent when analyzed against past spreads.


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