Risk Warning

Trading contracts for difference (CFDs) on the basis of leverage involves a significant degree of risk that may not be suitable for everyone, so please make sure you fully understand all the risks.

This is a general risk warning, and the information provided here is general in nature, dealing with all the products offered by forex companies.

This risk-warning notice cannot disclose all the risks of trading spot foreign exchange (“forex”) and foreign-exchange contracts for difference (“CFDs”). The purpose of this notice is to describe the main risks of forex and CFD trading.

You should not engage in spot forex trading or CFD trading unless you understand the fundamental aspects of this trading and its risks.

— For example, how positions are opened and closed, how profits and losses are made, and the extent of your exposure to risk and loss.

Trading spot forex and CFDs is speculation and involves a high degree of risk. In particular, because it is conducted using margin (which covers only a small percentage of the value of the foreign currency traded), price changes in forex or spot CFDs can lead to substantial losses.

Therefore, trading in these contracts is only suitable for people who understand and are willing to assume the economic, legal, and other risks involved in such transactions.

You must be satisfied that spot forex and CFD trading is suitable for you in light of your financial circumstances and your attitude to risk.

If you have any doubt about whether spot forex trading or CFD trading is suitable for you, please seek independent advice from a financial-services professional.

When you engage in CFD trading or forex trading, you are trading in relation to price movements.

Spreads are common in foreign-exchange markets, and the overall impact of spreads can be significant relative to the size of the margin you post, and may make it difficult for you to profit from your trading. In addition, in relation to the automatic rollover of spot forex transactions that you do not close, interest charges will apply.

You should carefully consider the impact of these interest charges, together with spreads or mark-ups and mark-downs, on your ability to profit from trading.

The leverage available in CFDs and forex trading — when the trade is compared to the notional size of the trade you can enter — means that a relatively small movement can lead to a relatively larger movement in the size of any loss or profit, which can work against you as well as for you.

The “leverage” or “gearing” available in CFDs and spot forex trading (opened compared to the notional size of the trade you can enter) means that a small margin deposit can lead to substantial losses as well as gains. It also means that a relatively small movement can lead to a relatively larger movement in the size of any loss or profit, which can work against you as well as for you.

CFDs and spot forex are not traded under the rules of a recognized or designated investment exchange. Accordingly, engaging in CFDs and/or spot forex trading may expose you to far greater risks than exchange-traded investments.

The likelihood of profit or loss from transactions in overseas markets, or in contracts denominated in foreign currencies, is affected by fluctuations in foreign-exchange rates. Transactions involving foreign currencies, including CFDs and/or spot forex trading, involve risks that do not exist when dealing with investments denominated entirely in your local currency. These enhanced risks include (but are not limited to) the risk of changes in the political or economic policy of a foreign country, which may substantially and permanently alter the terms and conditions, marketability, or price of a foreign currency. Profit or loss on transactions in contracts denominated in a foreign currency (whether traded in your country or in another jurisdiction) will also be affected by fluctuations in currency rates where conversion from the currency denomination of the contract to another currency is required.

Risk Disclaimer: Easy Trade will not be responsible for any loss from any of the trading companies listed on the site, or any damage resulting from reliance on the information contained on this site — including market news, analysis, trading recommendations, and forex-broker ratings — because all the data on this site is not necessarily real-time or accurate, and the analyses are the opinions of the authors and analysts, reflecting their technical view and fundamental coverage of the market.

Trading currencies on margin involves a high level of risk and is not suitable for all investors, since the losses of leveraged products are capable of exceeding the initial deposits and putting capital at risk. Before deciding to trade forex or any other financial instrument, you should carefully consider your investment objectives, your level of experience, and your appetite for risk. We work hard to provide you with valuable information about all the brokers we review. To provide you with this free service, we receive advertising fees from brokers, including some of those listed within our rankings and on this page. While we do our best to ensure all our data is up to date, we encourage you to verify our information with the broker directly.