Risk Disclosure

Last updated: January 2026

1. Nature of the Risk

Forex and CFD trading involves speculating on the price movement of financial instruments — including currency pairs, indices, commodities, shares, and cryptocurrencies — without owning the underlying asset. These products use leverage, meaning you control a position many times larger than your initial deposit. While leverage can amplify profits, it amplifies losses equally. A relatively small adverse price movement can result in a loss that exceeds your entire deposit.

2. Leverage Risk

Leverage ratios in retail forex and CFD trading range from 2:1 on cryptocurrencies to 30:1 on major forex pairs under EU and UK regulations, and significantly higher under offshore regulatory frameworks. A 1% move against a 100:1 leveraged position results in a 100% loss of the margin deployed for that trade. You should fully understand the leverage ratio applicable to your account and calculate your maximum possible loss before placing any trade.

3. Market Volatility

Financial markets can move rapidly and unpredictably. Major economic announcements, central bank decisions, geopolitical events, and unexpected news can cause prices to gap — jumping from one level to another without trading at intermediate prices. During such conditions, your stop-loss orders may be executed at a significantly worse price than instructed, resulting in losses greater than anticipated. Even brokers offering negative balance protection cannot always prevent slippage before a stop is triggered.

4. Overnight and Weekend Risk

Positions held overnight are subject to overnight financing charges (swap rates), which accrue daily and can meaningfully erode profitability on longer-duration trades. Positions held over the weekend are exposed to gap risk — markets are closed for approximately 48 hours but can open on Sunday at a materially different price to Friday's close with no opportunity to exit in between.

5. Counterparty and Broker Risk

Even with a regulated broker, there is residual counterparty risk. Regulatory compensation schemes — such as the FSCS in the UK (up to £85,000) and ICF in Cyprus (up to €20,000) — provide a safety net in the event of broker insolvency, but they do not cover trading losses and only apply to eligible clients of participating firms. Offshore-regulated brokers may have no equivalent compensation scheme. Always verify that client funds are held in segregated accounts at reputable banks and that your broker participates in a relevant investor compensation fund.

6. No Investment Advice

Forex Brokers Verified is an independent comparison and research platform. We do not provide personalised financial advice, portfolio management, or recommendations to buy, sell, or hold any specific financial instrument. All broker reviews, ratings, rankings, and educational content on this website are for general informational and educational purposes only. Nothing on this site constitutes a solicitation to trade or invest. Before making any trading decision, you should seek advice from an independent financial adviser authorised in your jurisdiction.

7. Past Performance

Past performance of any financial instrument, trading strategy, broker, or analyst recommendation is not indicative of future results. Historical returns shown in broker promotional materials, strategy backtests, or on this website are not guarantees of future performance. Market conditions change, and strategies that performed well historically may perform poorly or generate losses under different conditions.

8. Suitability

Leveraged trading products are complex and not suitable for everyone. Before trading, you should honestly assess:

• Your understanding of how forex, CFDs, and leverage work
• Your prior trading experience and financial knowledge
• Your financial situation — specifically, whether you can afford to lose the funds you intend to trade with
• Your tolerance for risk and emotional resilience during periods of loss
• Whether the regulatory protections available to you in your jurisdiction are adequate for the capital you intend to deploy

If you are uncertain about any of these points, we strongly recommend consulting a licensed financial professional before opening a live account.

9. Jurisdictional Restrictions

Forex and CFD trading is restricted or prohibited in certain jurisdictions. In the United States, retail forex trading must be conducted through CFTC/NFA-registered entities. In some countries, CFDs are illegal for retail clients. It is your sole responsibility to verify that accessing our website and engaging in any trading activity is lawful in your jurisdiction. Forex Brokers Verified makes no representation that the content of this site is appropriate or available for use in any particular country.

10. Limitation of Liability

By using Forex Brokers Verified, you agree that this website, its owners, operators, employees, and contributors shall not be liable for any direct, indirect, incidental, or consequential losses or damages arising from your use of our content, your reliance on any broker review or comparison, or your trading decisions. All information is provided "as is" without warranty of any kind. We make reasonable efforts to keep information accurate and current but cannot guarantee the completeness, accuracy, or timeliness of any content at any given moment.