I've traded stocks since 1999, and options since 2005. But I spent about 5 years or so learning about options before trading them in earnest. The problem is that nobody reads the fine print they end up sighing off on anyway. The reason is the Ts&Cs are too long and arduous. And they are too long and difficult to understand on purpose so people will give up and check off the block that says they read it, when they actually did not. The only recommendation that makes any sense to me is requiring a qualification test. A test that is created by the regulator, consumer group, or competing industry group. Having a competing 3rd party write the risk statements for these products and services, acknowledging the risks upfront and not burying them in some footnote somewhere - would stop a lot of abuse and save the ignorant from themselves in the process.
David Bruss Comment On Regulatory Notice 22-08
I've traded stocks since 1999, and options since 2005. But I spent about 5 years or so learning about options before trading them in earnest. The problem is that nobody reads the fine print they end up sighing off on anyway. The reason is the Ts&Cs are too long and arduous. And they are too long and difficult to understand on purpose so people will give up and check off the block that says they read it, when they actually did not. The only recommendation that makes any sense to me is requiring a qualification test. A test that is created by the regulator, consumer group, or competing industry group. Having a competing 3rd party write the risk statements for these products and services, acknowledging the risks upfront and not burying them in some footnote somewhere - would stop a lot of abuse and save the ignorant from themselves in the process.