CFD loss disclosure

Since ESMA's 2018 product intervention measures, CFD providers serving retail clients in the EU have had to show a standardised risk warning that includes a firm-specific figure, in the form: "X% of retail investor accounts lose money when trading CFDs with this provider." The UK FCA adopted similar rules. National regulators then made the measures permanent in their own rulebooks.

What the number means

• It is calculated by the broker over a rolling 12-month period and updated regularly (ESMA's measures require at least quarterly updates).
• It covers retail accounts only, not professional clients.
• It counts accounts that lost money overall in that period, after costs.

Published figures from EU brokers commonly sit somewhere between about 60% and 90%. ESMA's own analysis before the 2018 measures found that between 74% and 89% of retail accounts typically lost money.

Worked example

If a broker displays "76% of retail investor accounts lose money", then out of every 100 retail accounts active over the measured year, roughly 76 ended it with a net loss and 24 did not. It does not tell you how large the losses were or what an individual trader should expect.

Practical notes

• A lower percentage is not proof of a better broker. Client mix, products offered and how the firm calculates the figure all affect it.
• The figure is not a performance claim and should not be read as one.

We show each broker's figure next to its account links. Read why most retail CFD traders lose and our risk warning.