Leverage and CFD Risk Disclosure
What every reader of this independent review site should understand before trading leveraged products with any broker, including the one reviewed here.
More on the sponsored brokerWhat does leverage actually do to my money?
Suppose you open a position worth 10,000 units of a currency pair while your broker requires a margin of only 200. If the market moves one percent in your favour, you gain about 100 on your 200 margin. If it moves one percent against you, you lose about 100, and a two percent adverse move can wipe out the margin entirely. Leverage does not create opportunity in one direction only. It multiplies gains and losses by the same factor, and the loss side is the one that can arrive faster than you expect.
This is the core mechanic behind every leveraged forex and contract for difference position. Your exposure is a multiple of the money you set aside, and the broker can close your position once the margin is no longer sufficient. You may lose more than you initially put at risk if the market moves sharply and the position is closed at a worse level than the trigger point.
Because losses scale with position size rather than with your account size, a single oversized trade can undo the results of many smaller ones. Position sizing matters more than the direction you pick.
Why can the price I get differ from the price I saw?
Markets do not always trade at the level shown on your screen. Gaps can open between the close and the next open, particularly over weekends in currency markets, and a stop-loss order resting inside that gap will typically be filled at the first available price, not the price you specified. The same happens during fast-moving news, when quotes jump and orders are executed at levels far from the chart.
Slippage is normal in thin or volatile conditions. Economic releases, central bank announcements, elections and unexpected geopolitical events can move prices by large amounts in seconds. A guaranteed stop, where a broker offers one, is a separate product with its own cost and its own terms, and it does not remove the risk of a loss, only caps the price at which the position is closed.
Treat any order type as an instruction, not a promise. The price you receive is the price available in the market at the moment of execution.
Am I protected if something goes wrong with the broker?
Investor protection schemes differ by jurisdiction and by legal entity. The same brand name can operate through several entities, each licensed in a different country and each offering different client money rules, dispute procedures and compensation arrangements, if any apply at all. Where you are resident, and which entity holds your account, determines what protection you actually have.
This site is an independent editorial resource. It is not the broker, is not affiliated with the broker, does not provide financial services, does not open accounts or accept deposits, and does not give advice. It cannot answer questions about your account, your funds or any compensation claim. For anything account-related, use the contact form on this site to reach the editorial team, or contact the broker directly through the channels it publishes.
Before funding anything, find out which entity would hold your money, where it is regulated and what happens to client funds if that entity fails. Do not assume that protection available in one country applies in another.
What does it cost to keep a position open?
Trading costs do not stop at the spread. The spread is charged on entry and effectively on exit, and it widens when liquidity is thin, so the same position can cost more to open at night or around news than during active hours. On top of that, many leveraged positions carry overnight financing, charged daily on the value of the exposure rather than on your margin. A small daily charge compounds over weeks and can quietly erode a position that is merely standing still.
There may be commission on certain instruments, currency conversion charges when your account currency differs from the instrument's, and inactivity fees where an account is left dormant. Read the cost schedule for the specific instrument, not just the headline spread. Add up the spread, the financing and any conversion cost before deciding whether a trade has a realistic chance of being profitable after costs.
Only trade with money you can afford to lose entirely, and keep in mind that costs accrue whether or not the trade works.
