Risk disclosure

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. Most retail investor accounts lose money when trading CFDs. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

Leverage works both ways

Leverage multiplies gains and losses equally. A small adverse move can wipe out a large share of your deposit. Higher leverage — including 1:500 offered by offshore entities — increases that risk substantially.

Margin calls and liquidation

If your equity falls below the required margin, positions can be closed automatically without notice, crystallising losses.

Variable spreads and slippage

Published spreads are typical values in normal conditions. Around economic news, at market open, and in thin liquidity, spreads widen and orders can fill at worse prices than requested.

Overnight financing and costs

Positions held overnight incur swap or financing charges, and commission applies on raw-spread accounts. Costs accumulate and can turn a profitable strategy into a losing one.

Regulatory protections differ by entity

Where you are onboarded matters. FCA-regulated entities provide retail protections such as negative balance protection, leverage caps and FSCS eligibility. Professional-client status and offshore entities give up those protections, even when the brand name is the same.

Counterparty risk

You are exposed to the financial standing of your broker. Check regulator registers and segregated-client-money arrangements before depositing.

Past performance

Past performance, backtests, and any results shown by third parties are not a reliable indicator of future results. Nothing on this site guarantees a profit.

No advice

SpreadComparison publishes comparison information only. Read our terms of use and consider independent professional advice before trading.