The European Securities and Markets Authority (ESMA) and the European Banking Authority (EBA) have published a warning to retail investors about the dangers of investing in contracts for difference (CFDs). The two authorities are concerned that during the current period of low investment returns, inexperienced retail investors across the EU are being tempted to invest in complex financial products which they may not fully understand and which can end up costing them money they cannot afford to lose. They decided that investors should only consider trading in CFD's if they have extensive experience of trading in volatile markets, fully understand how these operate and have sufficient time to manage their investment on an active basis. Investors should also carefully reach their agreement or contract with the CFD provider before making a trading decision.