Risk Warning
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. Between 51% and 89% of 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 risk
Leveraged products such as CFDs and margin forex allow you to control a position far larger than your deposit. Leverage magnifies losses in exactly the same way it magnifies gains. Depending on the broker, your regulatory jurisdiction, and whether negative balance protection applies, losses can equal or exceed your deposited funds.
Market risk
Prices of currencies, shares, commodities, and cryptocurrencies can move sharply and without warning, including outside normal trading hours. Markets can gap through stop loss levels, meaning a standard stop loss does not guarantee your exit price unless the broker explicitly offers guaranteed stops.
Counterparty and regulatory risk
Your funds are held by the broker you choose. Regulated brokers must segregate client funds and meet capital requirements; unregulated brokers offer no such protection. Our reviews state each broker's regulators, and our regulation tracker records licence changes, warnings, and enforcement actions. Always verify a broker's licence directly with the regulator before depositing.
Cryptocurrency risk
Crypto derivatives are highly volatile and, in some jurisdictions including the UK, their sale to retail consumers is restricted or banned. Crypto assets are largely unregulated and losses are unlikely to be covered by investor compensation schemes.
No financial advice
BrokerDataNet publishes independent research, data, and reviews. Nothing on this site is investment advice or a personal recommendation, and our scoring methodology measures broker quality, not the suitability of any product for your circumstances. If you are unsure whether trading is appropriate for you, seek advice from an independent financial adviser authorised in your jurisdiction.
Only risk what you can afford to lose
Never trade with money needed for essential living costs, and never trade with borrowed money. Practice on a demo account first, start small, and treat any projected returns with scepticism, no legitimate broker or platform can guarantee profits.