Risk Disclosure
Last updated: June 2026
⚠ Important Warning: Trading financial instruments involves significant risk. Please read this disclosure carefully before making any investment decisions.
1. General Risk Warning
CFDs (Contracts for Difference), Forex, and other leveraged financial instruments are complex products that carry a high degree of risk. Between 74% and 89% of retail investor accounts lose money when trading CFDs. You should only trade with money you can afford to lose entirely.
2. Leverage Risk
Trading on margin means you can control a large position with a relatively small deposit. While this can amplify profits, it can equally amplify losses — potentially exceeding your initial deposit. High leverage (e.g., 1:500) means even small market movements can result in significant gains or losses.
3. Market Volatility
Financial markets can be highly volatile, especially during economic announcements, geopolitical events, or periods of low liquidity. Prices can move rapidly and unpredictably. Slippage and gapping may result in orders being executed at prices significantly different from those requested.
4. Currency Risk
When trading instruments denominated in a currency different from your account's base currency, you are exposed to exchange rate fluctuations. This can affect both profits and losses independently of the performance of the underlying instrument.
5. Counterparty Risk
When trading with a broker, you are exposed to counterparty risk — the possibility that the broker may be unable to fulfil its financial obligations. Always ensure your broker is regulated by a reputable authority and that client funds are held in segregated accounts.
6. Technology & Connectivity Risk
Electronic trading platforms and internet connections can experience outages, delays, or failures. Technical issues may prevent you from placing, amending, or closing orders at the desired time or price. Ensure you have contingency plans in place.
7. Liquidity Risk
Some markets or instruments may have low liquidity, meaning it can be difficult to enter or exit positions at your desired price. This is particularly relevant during off-peak hours, around major news events, or for exotic currency pairs and thinly traded assets.
8. Funded Trader Accounts
Prop firm and funded trader accounts come with specific rules around drawdown limits, profit targets, and trading restrictions. Violating these rules — even unintentionally — may result in the loss of your funded account. Carefully review all terms before trading a funded account.
9. Not Financial Advice
The information provided on BrokerStats is for informational and educational purposes only. It does not constitute financial advice, investment recommendations, or a solicitation to buy or sell any financial instrument. Always seek independent financial advice tailored to your circumstances before making investment decisions.
10. Regulatory Considerations
The availability of certain financial products and services may be restricted based on your country of residence. It is your responsibility to ensure that trading the instruments described is legal in your jurisdiction and that you comply with all applicable local regulations.
11. Past Performance
Past performance of any trading strategy, broker, or financial instrument is not a reliable indicator of future results. Market conditions change constantly and historical returns do not guarantee future performance.
By using BrokerStats, you acknowledge that you have read and understood this Risk Disclosure and accept full responsibility for any trading decisions you make. Never invest more than you can afford to lose.