Risk warning

CFDs and leveraged forex are high risk

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. Between 61% and 75% of retail investor accounts lose money when trading CFDs with the providers reviewed on this site, according to the figures each provider publishes. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

The exact figure for each provider is shown next to every "Open account" button and on its review. Providers update these figures regularly; so do we.

What leverage does

Leverage lets you control a large position with a small deposit (margin). Profit and loss are calculated on the full position, not on your deposit, so a small price move against you can wipe out your margin. Losses can happen quickly, including when you are not watching the market, and prices can gap past a stop-loss.

Limits for retail clients in the EU and UK

EU (ESMA) and UK (FCA) rules limit leverage for retail clients:

• 30:1 for major currency pairs.
• 20:1 for non-major pairs, gold and major indices.
• 10:1 for commodities other than gold and non-major indices.
• 5:1 for individual equities.
• 2:1 for cryptocurrencies (CFDs on crypto are banned for UK retail clients).

Retail clients also benefit from margin close-out at 50% of required margin and from negative balance protection, which means you cannot lose more than the money in your account. Outside the EU and UK, or if you are classed as a professional client, these protections may not apply.

Past performance

Past performance is not a reliable indicator of future results. Market recaps on this site describe what already happened; they do not predict what will happen next.

Not advice

The Pip Report is a publisher. Everything on this site is general information and education. It does not take your objectives, financial situation or needs into account and is not investment advice, a recommendation or an offer to buy or sell any financial instrument. If you are unsure, seek independent advice from a licensed adviser.

Only use regulated providers

Before opening an account, check the provider's licence on the regulator's own register. See Regulator registers.