CFDs, leveraged forex and spread betting
CFDs and spread bets 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. Every CFD provider regulated in the EU or UK must publish the percentage of its own retail accounts that lost money over the previous 12 months; the figure typically ranges from around 60% to over 80%. You should consider whether you understand how these products work and whether you can afford to take the high risk of losing your money.
- Leverage magnifies both gains and losses; a small price move can wipe out your margin.
- Prices can gap, so stop-losses may be filled at worse prices.
- Overnight financing and other costs reduce returns, especially for positions held for longer periods.
- As a retail client of an EU/EEA or UK firm you benefit from negative balance protection. Clients of offshore firms, and professional clients, may not.
Crypto-assets
Crypto-assets are highly volatile and can lose most or all of their value. Crypto-assets held with a platform are not covered by investor compensation or deposit guarantee schemes. Crypto CFDs are subject to a maximum leverage of 2:1 for EU retail clients and are banned for UK retail consumers.
Shares, ETFs and other investments
The value of investments can go down as well as up, and you may get back less than you invested. Past performance is not a reliable indicator of future results. Investments in foreign currencies are also affected by exchange rates.
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Information on this website is not a personal recommendation. Protection Scores measure structural protection only and are not a guarantee of safety or suitability. See our terms of use and methodology.
If trading is affecting your finances or wellbeing, stop and seek help. Free debt advice and gambling-support services are available in most European countries.