Do MiFID rules make European forex brokers safer?

MiFID and MiFID II are EU frameworks that harmonize many rules for investment firms, including forex and CFD brokers. They impose requirements on client classification, disclosure, best execution, conflicts of interest, and the handling of client money. In practice, this means European brokers must follow stricter standards for transparency, reporting, and risk warnings than many offshore firms. Combined with national regulations and ESMA interventions, MiFID has led to leverage caps for retail clients, restrictions on aggressive bonuses, and clearer information about costs and risks. These measures can make the trading environment safer and more transparent, especially for beginners. However, they do not remove market risk or ensure profitability; traders can still lose money, but are less likely to face outright abusive practices.