BaFin Reports 74% of German Retail Turbo Traders Lost Money, €3.4B Gone

Consumer protectors consider certificates to be opaque and expensive, sometimes private investors lose a lot of money. Financial supervision now wants to restrict trade in certain products.

Germany's BaFin to restrict trading in Turbos as retail losses top €3.4 billion

BaFin will accept comments on its planned product intervention measure on Turbos until July 3, 2025. The post Germany’s BaFin to restrict trading in Turbos as retail losses top €3.4 billion appeared first on FX News Group.

BaFin Reports 74% of German Retail Turbo Traders Lost Money, €3.4B Gone

A recent market investigation by Germany’s financial regulator, BaFin, revealed that a significant majority of retail investors trading turbo certificates incurred substantial losses. Covering January 2019 to December 2023, the study found that 74.2% of these investors lost money, with average losses of €6,358 per losing investor. Total losses exceeded €3.4 billion during this five-year period.Turbo certificates are leveraged derivative products…

In a study, financial supervisor BaFin examined the market for turbo certificates. Between 2019 and 2023, she found that around three out of four retail investors suffered losses with turbo certificates, on average EUR 6,358 each. Overall, the losses over the observation period amounted to over EUR 3.4 billion.