91% loss rate occurred among frequent turbo certificate traders.
Investors aged 30–50 in southern Germany traded turbos most actively, often with heavy losses.
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 similar
to contracts for difference (CFDs), another popular but high-risk instrument
among retail investors. Both allow for leveraged exposure to underlying assets
but can lead to rapid and total capital loss.
Due to their complexity and risks, CFDs have faced EU
regulatory restrictions. BaFin’s findings may prompt renewed scrutiny of turbo
certificates, which are also marketed under various names such as “Knock-Out
Options,” “Mini-Futures,” or “Wave XXL Certificates,” potentially obscuring the
associated risks.
High-Risk Trading Hits German Retail Investors
These certificates enable investors to amplify exposure to
price movements of assets like stocks, indices, or currencies. They include a
knock-out threshold: if the asset price reaches this level, the certificate
expires immediately and becomes worthless. While gains can be magnified, losses
can quickly wipe out the entire investment.
The BaFin analysis examined approximately 113 million
transactions by 543,000 retail investors, based on data reported under Article
26 of the EU’s Markets in Financial Instruments Regulation (MiFIR). It focused
on small investors with German citizenship, excluding trades via intermediaries
outside the EU or by non-German residents.
4. Number of retail investors who traded Turbo Certificates, Source: Bafin
Over five years, the number of investors and transactions
more than doubled. In 2023, about 231,000 small investors traded turbo
certificates in Germany, an increase of around 110% since 2019 despite being
slightly below the 2021 peak. Investors placed over 62 million purchase orders
averaging €3,003 each, with a combined purchase volume near €195 billion.
Distribution of trading success per retail investor, Source: Bafin
The market is highly concentrated. Among 20 active issuers,
the top five accounted for over 75% of transactions. Similarly, the top five of
1,294 intermediaries handled more than three-quarters of the volume. Most
intermediaries 1,147 were based in Germany.
Frequent Turbo Traders Suffer Higher Losses
BaFin’s evaluation also highlighted a correlation between
trading frequency and losses. Investors with 1–10 trades had a 70% loss rate,
rising to 76% for 10–100 trades, 83% for 100–500 trades, and 91% for over 1,000
trades. Around 12% of investors lost more than €10,000, while only 2% earned
profits of similar size.
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 similar
to contracts for difference (CFDs), another popular but high-risk instrument
among retail investors. Both allow for leveraged exposure to underlying assets
but can lead to rapid and total capital loss.
Due to their complexity and risks, CFDs have faced EU
regulatory restrictions. BaFin’s findings may prompt renewed scrutiny of turbo
certificates, which are also marketed under various names such as “Knock-Out
Options,” “Mini-Futures,” or “Wave XXL Certificates,” potentially obscuring the
associated risks.
High-Risk Trading Hits German Retail Investors
These certificates enable investors to amplify exposure to
price movements of assets like stocks, indices, or currencies. They include a
knock-out threshold: if the asset price reaches this level, the certificate
expires immediately and becomes worthless. While gains can be magnified, losses
can quickly wipe out the entire investment.
The BaFin analysis examined approximately 113 million
transactions by 543,000 retail investors, based on data reported under Article
26 of the EU’s Markets in Financial Instruments Regulation (MiFIR). It focused
on small investors with German citizenship, excluding trades via intermediaries
outside the EU or by non-German residents.
4. Number of retail investors who traded Turbo Certificates, Source: Bafin
Over five years, the number of investors and transactions
more than doubled. In 2023, about 231,000 small investors traded turbo
certificates in Germany, an increase of around 110% since 2019 despite being
slightly below the 2021 peak. Investors placed over 62 million purchase orders
averaging €3,003 each, with a combined purchase volume near €195 billion.
Distribution of trading success per retail investor, Source: Bafin
The market is highly concentrated. Among 20 active issuers,
the top five accounted for over 75% of transactions. Similarly, the top five of
1,294 intermediaries handled more than three-quarters of the volume. Most
intermediaries 1,147 were based in Germany.
Frequent Turbo Traders Suffer Higher Losses
BaFin’s evaluation also highlighted a correlation between
trading frequency and losses. Investors with 1–10 trades had a 70% loss rate,
rising to 76% for 10–100 trades, 83% for 100–500 trades, and 91% for over 1,000
trades. Around 12% of investors lost more than €10,000, while only 2% earned
profits of similar size.
Prop Firms and Brokers Form a Perfect Synergy: One Offers Access, the Other Capital
Executive Interview | Charlotte Bullock | Chief Product Officer, Bank of London | FMLS:25
Executive Interview | Charlotte Bullock | Chief Product Officer, Bank of London | FMLS:25
In this interview, we sat down with Charlotte Bullock, Head of Product at The Bank of London, previously at SAP and now shaping product at one of the sector’s most ambitious new banking players.
Charlotte reflects on the Summit so far and talks about the culture inside fintech banks today. We look at the pressures that come with scaling, and how firms can hold onto the nimble approach that made them stand out early on.
We also cover the state of payments ahead of her appearance on the payments roundtable: the blockages financial firms face, the areas that still need fixing, and what a realistic solution looks like in 2026.
In this interview, we sat down with Charlotte Bullock, Head of Product at The Bank of London, previously at SAP and now shaping product at one of the sector’s most ambitious new banking players.
Charlotte reflects on the Summit so far and talks about the culture inside fintech banks today. We look at the pressures that come with scaling, and how firms can hold onto the nimble approach that made them stand out early on.
We also cover the state of payments ahead of her appearance on the payments roundtable: the blockages financial firms face, the areas that still need fixing, and what a realistic solution looks like in 2026.
In this conversation, we sit down with Drew Niv, CSO at ATFX Connect and one of the most influential figures in modern FX.
We speak about market structure, the institutional view on liquidity, and the sharp rise of prop trading, a sector Drew has been commenting on in recent months. Drew explains why he once dismissed prop trading, why his view changed, and what he now thinks the model means for brokers, clients and risk managers.
We explore subscription-fee dependency, the high reneging rate, and the long-term challenge: how brokers can build a more stable and honest version of the model. Drew also talks about the traffic advantage standalone prop firms have built and why brokers may still win in the long run if they take the right approach.
In this conversation, we sit down with Drew Niv, CSO at ATFX Connect and one of the most influential figures in modern FX.
We speak about market structure, the institutional view on liquidity, and the sharp rise of prop trading, a sector Drew has been commenting on in recent months. Drew explains why he once dismissed prop trading, why his view changed, and what he now thinks the model means for brokers, clients and risk managers.
We explore subscription-fee dependency, the high reneging rate, and the long-term challenge: how brokers can build a more stable and honest version of the model. Drew also talks about the traffic advantage standalone prop firms have built and why brokers may still win in the long run if they take the right approach.
Executive Interview | Remonda Z. Kirketerp Møller| CEO & Founder Muinmos | FMLS:25
Executive Interview | Remonda Z. Kirketerp Møller| CEO & Founder Muinmos | FMLS:25
In this interview, Remonda Z. Kirketerp Møller, founder of Muinmos, breaks down the state of AI in regtech and what responsible adoption really looks like for brokers. We talk about rising fragmentation, the pressures around compliance accuracy, and why most firms are still in the early stages of AI maturity.
Ramanda also shares insights on regulator sandboxes, shifting expectations around accountability, and the current reality of MiCA licensing and passporting in Europe.
A concise look at where compliance, onboarding, and AI-driven processes are heading next.
In this interview, Remonda Z. Kirketerp Møller, founder of Muinmos, breaks down the state of AI in regtech and what responsible adoption really looks like for brokers. We talk about rising fragmentation, the pressures around compliance accuracy, and why most firms are still in the early stages of AI maturity.
Ramanda also shares insights on regulator sandboxes, shifting expectations around accountability, and the current reality of MiCA licensing and passporting in Europe.
A concise look at where compliance, onboarding, and AI-driven processes are heading next.
In this conversation, we speak with Aydin Bonabi, CEO and co-founder of Surveill, a firm focused on fraud detection and AI-driven compliance tools for financial institutions.
We start with Aydin’s view of the Summit and the challenges brokers face as fraud tactics grow more complex. He explains how firms can stay ahead through real-time signals, data patterns, and early-stage detection.
We also talk about AI training and why compliance teams often struggle to keep models accurate, fair, and aligned with regulatory expectations. Aydin breaks down what “good” AI training looks like inside a financial environment, including the importance of clean data, domain expertise, and human oversight.
He closes with a clear message: fraud is scaling, and so must the tools that stop it.
In this conversation, we speak with Aydin Bonabi, CEO and co-founder of Surveill, a firm focused on fraud detection and AI-driven compliance tools for financial institutions.
We start with Aydin’s view of the Summit and the challenges brokers face as fraud tactics grow more complex. He explains how firms can stay ahead through real-time signals, data patterns, and early-stage detection.
We also talk about AI training and why compliance teams often struggle to keep models accurate, fair, and aligned with regulatory expectations. Aydin breaks down what “good” AI training looks like inside a financial environment, including the importance of clean data, domain expertise, and human oversight.
He closes with a clear message: fraud is scaling, and so must the tools that stop it.
Exness expands its presence in Africa: Inside our interview with Paul Margarites in Cape Town
Exness expands its presence in Africa: Inside our interview with Paul Margarites in Cape Town
Finance Magnates met with Paul Margarites, Exness regional commercial director for Sub-Saharan Africa, during a visit to the firm’s office opening in Cape Town. In this talk, led by Andrea Badiola Mateos, Co-CEO at Finance Magnates, Paul shares views on the South African trading space, local user behavior, mobile trends, regulation, team growth, and how Exness plans to grow in more markets across the region. @Exness
Read the article at: https://www.financemagnates.com/thought-leadership/exness-expands-its-presence-in-africa-inside-our-interview-with-paul-margarites/
#exness #financemagnates #exnesstrading #CFDtrading #tradeonline #africanews #capetown
Finance Magnates met with Paul Margarites, Exness regional commercial director for Sub-Saharan Africa, during a visit to the firm’s office opening in Cape Town. In this talk, led by Andrea Badiola Mateos, Co-CEO at Finance Magnates, Paul shares views on the South African trading space, local user behavior, mobile trends, regulation, team growth, and how Exness plans to grow in more markets across the region. @Exness
Read the article at: https://www.financemagnates.com/thought-leadership/exness-expands-its-presence-in-africa-inside-our-interview-with-paul-margarites/
#exness #financemagnates #exnesstrading #CFDtrading #tradeonline #africanews #capetown
