Trading foreign exchange and contracts for difference carries a high level of risk and is not suitable for every investor. You can lose money rapidly, and losses may exceed the amount you originally deposited if your account is not protected by negative balance protection. Never trade with money you cannot afford to lose entirely.
Leverage Works in Both Directions
Leverage lets you control a position far larger than your deposit. The same multiple that enlarges a gain enlarges a loss, so a small move against you can consume a large share of your account. A position held at high leverage can be closed out automatically when your margin falls below the level your broker requires, crystallising the loss without any further action from you.
Overnight financing, spreads, commissions and currency conversion costs are charged whether the position is profitable or not, and they accumulate the longer a leveraged position is held.
CFDs Are Complex Instruments
A contract for difference is a derivative: you never own the underlying asset, and you are exposed to the credit of the provider on the other side of the contract. Prices can gap through your stop loss during weekend breaks, at market open, or around high-impact economic releases, so a stop order limits risk but does not guarantee your exit price.
Retail traders lose money on these products regularly. Any percentage figure you see quoted for a specific broker should be checked against that broker's own published disclosure and its regulator's register rather than taken from a third-party page.
Nothing Here Is Investment Advice
Everything we publish — broker reviews and scores, market news, technical analysis, signals, calculators and educational material — is general information produced for a broad audience. It takes no account of your financial situation, objectives, tax position or risk tolerance, and it is not a personal recommendation to buy, sell or hold anything.
We do not manage client money, accept deposits, or execute trades. Past performance, including any historical results shown for our own analysis or signals, is not a reliable indicator of future results. If you are unsure whether a product is right for you, seek advice from an independent, appropriately licensed adviser before trading.
Jurisdiction and Eligibility
Leveraged trading is restricted or prohibited for retail clients in a number of jurisdictions, and the maximum leverage, negative balance protection and investor compensation available to you depend on where you live and which legal entity of a broker onboards you. Content on this site is not directed at residents of any country where its publication or use would breach local law or regulation.
It is your responsibility to confirm that you may lawfully open an account with a given provider, and to verify that provider's licence directly on the relevant regulator's public register before depositing funds.
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