FCA Intensifies Scrutiny of CFD Brokers Steering Retail Clients Offshore
22 October 2025
The Financial Conduct Authority (FCA) has stepped up oversight of Contracts for Difference (CFD) brokers targeting retail investors, sharpening its focus on conduct that shifts clients outside UK protections. The regulator is examining brokers that steer retail customers toward offshore platforms or encourage them to claim professional status, practices that can sidestep UK rules and expose individuals to higher leverage and heightened risk.
This regulatory push coincides with new rules for financial promotions on social media, designed to strengthen transparency and reinforce investor protection. For affiliates operating in the financial niche, the developments signal a more exacting compliance environment and the need for prompt adjustments in promotional strategy.
Key takeaways
- The FCA is targeting CFD brokers that encourage retail clients to self-classify as professional traders or to trade offshore, effectively avoiding UK safeguards.
- These approaches often involve access to high leverage, which increases client risk and intensifies regulatory concern.
- In 2024, more than 19,000 financial promotions were changed or withdrawn, underscoring active FCA enforcement, particularly in social media advertising.
- Affiliates promoting CFD products must align with FCA advertising standards and avoid messaging that incentivises high-risk client behaviour.
- Tighter promotion guidelines and broader regulatory scrutiny may affect affiliate earnings and require clearer, more transparent marketing.
What is happening
The FCA has increased regulatory action against CFD brokers that exploit perceived loopholes by guiding retail investors into classifications or venues that reduce regulatory protection. Specifically, some brokers encourage clients to self-identify as professional traders or to use offshore platforms, which can bypass UK leverage limits and mandatory risk warnings.
The FCA views these tactics as a significant consumer protection issue. High leverage can amplify potential gains, yet it also increases the likelihood of substantial losses, particularly for retail clients. In response, the regulator has issued new guidance on financial promotions, with particular attention to social media channels where a large share of CFD marketing is distributed.
The scale of intervention is notable. In 2024 alone, the FCA amended or withdrew nearly 20,000 financial promotions, highlighting the breadth of enforcement and signalling intensified scrutiny of both brokers and the affiliates that promote their products.
How this connects to affiliate marketing
Affiliates promoting CFD trading are facing rising compliance expectations. Many CFD brokers depend on affiliate marketing for client acquisition, meaning regulatory changes quickly translate into operational and strategic implications for affiliate partners.
Under the FCA’s heightened approach, marketing messages must avoid encouraging clients to circumvent UK protections through offshore trading or professional classification pathways associated with higher leverage. Campaigns that lack clear risk disclosure or appear to promote risky client categorisations may be suspended, removed, or rejected by advertisers and networks.
Finance affiliate segments focused on CFDs, forex, or derivatives should also anticipate that payout structures or tracking requirements may evolve as brokers adapt to FCA pressure. Affiliates will need to monitor updates closely and prioritise partnerships with brokers or platforms operating within FCA expectations.
Strategic insights
Affiliates can respond constructively by emphasising brokers with strong compliance reputations and by foregrounding regulated offers supported by clear risk disclosures. This approach can strengthen credibility with more cautious investors and support more sustainable conversion performance.
Content strategies that prioritise education—particularly around leverage risk and regulatory protections—can differentiate campaigns from less transparent competitors. Given increased scrutiny of social media promotions, affiliates may also need to reassess traffic sources and reduce reliance on channels that frequently attract regulatory attention.
Diversification may also be prudent. Exploring other financial verticals or complementary investment products outside CFDs can help balance exposure to regulatory shifts. Seasonality and geographic targeting may likewise be adjusted toward jurisdictions with stable regulation, supporting a steadier compliance profile.
Practical next steps
- Audit promotional materials for FCA alignment. Review copy, creatives, and landing pages to ensure they do not encourage high-risk client status changes or offshore trading as a means to bypass protections.
- Stay current with official FCA guidance. Regularly consult regulator publications and updates to reflect evolving standards on risk disclosures and financial promotions.
- Use affiliate tools to manage compliance and performance. Track campaign changes, monitor broker requirements, and adjust rapidly in response to regulatory feedback.
Conclusion
The FCA’s intensified crackdown on CFD brokers steering retail clients offshore or into professional status is reshaping the affiliate marketing landscape in financial services. As promotional rules tighten—especially on social media—affiliates will need to prioritise compliance, transparency, and disciplined messaging to maintain campaign stability.
In a market with diminishing tolerance for aggressive or misleading promotions, affiliates aligned with compliant brokers and clear risk communication are better positioned to protect long-term revenue continuity while operating within regulatory expectations.