Risk Disclosure: Leveraged Forex and CFD Trading
This page explains what this disclosure covers and the main risks that leveraged forex and CFD trading can involve for readers of this independent review site.
Rates at the sponsorUnderstand What This Disclosure Covers and What It Leaves Out
This page sets out general risk information for readers of fcmabrokerau.com who are considering leveraged forex and contract for difference (CFD) trading with the broker reviewed on this site. It explains the categories of risk that are commonly associated with these products. It does not describe the terms of any particular account, it does not summarise any product disclosure statement or client agreement, and it does not assess whether these products are suitable for you.
This site is an independent editorial resource. It reviews the broker FXCM for readers in Australia. It is not the broker, it is not affiliated with the broker, and it does not provide financial services, accounts, deposits or advice. Nothing on this page or elsewhere on the site is a recommendation to trade, an offer, or a personal assessment of your circumstances. Any decision to open an account or place a trade is made with the broker directly and is your responsibility.
Risk warnings that apply to a specific product come from the entity that issues it. Where you need the current terms, the applicable fees, or the warnings that bind your account, read the documents the broker provides and seek independent advice if you are unsure.
Recognise How Gaps, Slippage and News Move Prices
Leveraged products are priced from underlying markets that do not trade continuously. Prices can jump between one quote and the next, and a market can reopen well away from where it closed. When that happens, stop orders intended to limit a loss may be filled at the next available price rather than the price you set, and in fast conditions the difference can be substantial. This is a gap, and it can produce a loss larger than the amount you expected to risk on the trade.
Slippage is the difference between the price you anticipated and the price you receive. It is most common around major economic releases, central bank decisions, unscheduled news, and the minutes before and after trading sessions open or close. Liquidity can thin sharply in those windows, spreads can widen, and orders may be rejected or filled in parts. Volatility that looks like an opportunity can just as easily work against a position within seconds.
These effects are a feature of the market rather than a fault in any platform. No order type removes them entirely, and a guarantee against negative balances, where one applies, does not protect you from losing the funds in your account.
Check Which Entity You Deal With and What Protection Applies
The broker reviewed on this site may operate through more than one legal entity, and the entity that holds your account determines the rules that apply to it. Client money protection, complaint handling, dispute resolution and insolvency arrangements differ by jurisdiction. A scheme available in one country may not extend to clients of an entity registered elsewhere, and compensation caps and eligibility conditions vary.
Because this site is not the broker and does not provide financial services, it cannot confirm which entity would hold your account or what protection would attach to it. Those details come from the broker's own documents and from the regulator that supervises the relevant entity. Before depositing funds, establish which entity you are contracting with, where it is established, and which scheme, if any, covers your money. Do not assume that a brand name implies a particular licence or a particular level of protection.
See How Leverage Cuts Both Ways and Why Past Results Prove Little
Leverage lets you control a position larger than the margin you commit. It magnifies the effect of price movement on your equity in both directions. A move in your favour produces a gain calculated on the full position size; an equal move against you produces a loss on the same scale, and that loss can exceed your deposit. Margin calls and close-out arrangements may shut positions at the least favourable moment, turning a temporary move into a realised loss.
Past performance tells you very little about what will happen next. Historical prices, backtested results and any track record reflect conditions that will not repeat in the same way. Markets change, liquidity changes, and the risks described above can appear without warning. A strategy that produced gains in one period can produce losses in the next, and no presentation of earlier results removes the possibility of loss.
Retail trading in leveraged forex and CFDs carries a high risk of losing money rapidly. Regulators in several markets require firms to publish the share of retail client accounts that lose money when trading these products, and those published figures are typically a clear majority. Read the equivalent disclosure for the entity you would deal with, treat any capital you commit as at risk, and never trade with money you cannot afford to lose.
