Denmark Follows U.K. to Ban Binary Option Sale to Retail Clients

Denmark plans to ban the sale of binary options to retail customers, saying the securities are too complex and risky for non-professional investors.

The move mirrors similar measures under way in other countries, including the U.K. and Austria. Growing numbers of retail investors in Europe are losing money on the products, which are often sold online by companies that disregard investor protection rules, according to the Danish Financial Supervisory Authority.

Denmark flagged the dangers of the complex derivatives already in 2016, when it likened buying the securities to playing the lottery. But so far it’s only advised against them, citing ...