Risk Disclosures

Contracts for Difference and leveraged foreign exchange are complex instruments and carry a high risk of losing money rapidly due to leverage. You may lose more than your initial deposit.

These products are not suitable for every investor. Before opening an account, consider whether you understand how they work and whether you can afford to take the risk. Never trade with money you cannot afford to lose, and never trade with borrowed money or funds you need for living costs.

This document sets out the main risks of trading with Prime FX. It is not a complete list. Read it together with our Terms of Service.

When you trade a CFD you do not buy the underlying instrument. You enter a contract with us whose value moves with the price of that instrument. You never own the share, the barrel of oil, the gold or the cryptocurrency.

Because you do not own the asset, you do not get what ownership would give you:

• no shareholder voting rights and no entitlement to attend meetings;
• no direct dividend — where a corporate action occurs we make an adjustment to your position instead, which may be treated differently for tax;
• no cryptocurrency you can withdraw to a wallet of your own, and none of the protections of holding the coin directly.

Leverage lets a small amount of margin control a much larger position. It multiplies gains and losses by the same factor. At 1:30, a position worth $30,000 is held against $1,000 of margin — and a 3.33% move against you wipes out that margin entirely.

The higher the leverage, the smaller the price move that matters. The tiers we offer run from 1:1 to 1:30 and are published on the leverage page, with the margin each one requires.

If your margin falls below the close-out threshold, positions may be closed automatically without prior notice. Automatic close-out is a risk control, not a guarantee. In a fast market it can execute well below the threshold, and it does not ensure your loss stops at any particular level.

Prices do not move in a continuous line. Markets gap over weekends, around scheduled news, and when an unexpected event hits. A gap means the price jumps straight past the level where your order sat.

A stop-loss order is an instruction to close at the next available price once your level trades — not a promise to close at that level. In a gap it fills at whatever the market offers next, which can be materially worse. A guaranteed stop, where offered, is a separate product with its own cost.

Slippage cuts both ways and is normal. Assume it when you size a position, rather than assuming a fill at the price on screen.

Spreads are variable. They are tightest when a market is deep and busy, and they widen around the open and close, over holidays, during news releases, and whenever liquidity thins out. Any typical spread shown on this website is an average taken over normal conditions, not a guaranteed figure.

Each instrument trades only during its own market hours. A position left open when a market closes cannot be adjusted until it reopens, whatever happens in between.

Overnight financing, or swap, is charged or credited on every position held past the daily rollover. On a leveraged position held for weeks or months it can become a significant cost — large enough, on its own, to turn a correct view into a losing trade.

Spread, commission where it applies, currency conversion and any inactivity fee all reduce your return as well. The full schedule is in your account area. Work out the total cost of a position before you open it, not after.

Where an instrument is priced in a currency other than your account currency, your result depends on two things: the instrument and the exchange rate. You can be right about the instrument and still lose money on the conversion. Deposits and withdrawals in another currency carry the same exposure, plus the conversion charge.

Cryptocurrency markets trade around the clock, including weekends, and are far more volatile than currency or index markets. Double-digit daily moves happen. A position that looked comfortable on Friday evening can be liquidated on Sunday while you are not watching.

Underlying crypto markets are, in many jurisdictions, less regulated than traditional markets, more exposed to concentrated holdings and market manipulation, and prone to sudden liquidity gaps. Treat the leverage you apply here as materially riskier than the same leverage applied elsewhere.

When you trade a CFD, we are your counterparty. Your profit or loss is settled with us, not through an exchange, so you carry the risk that we are unable to meet our obligations.

Client deposits are held in accounts kept separate from our operating funds, in accordance with the requirements of the regulator of the entity that holds your account. Segregation is a safeguard on how funds are held. It does not remove market risk, and it does not guarantee that all funds are recovered in every circumstance.

Online trading depends on systems that can fail: your device, your connection, our platform, our liquidity providers, and the networks in between. An outage can prevent you from opening, adjusting or closing a position at the moment you most want to. Build that possibility into how you size positions and how far you let one run unattended.

Prime FX provides an execution-only service. We do not assess whether a trade suits your circumstances, and we do not make recommendations.

Nothing published by us or on our behalf is investment, tax or legal advice. That includes market commentary, research, webinars, educational material, the prices shown on this website, and anything said to you by our staff or by an introducing agent. If you need advice, take it from someone licensed to give it in your country.

You should know where our interests and yours may not align:

• We are your counterparty. Depending on how a position is managed and hedged, your loss may be our gain.
• We earn from spread, commission and overnight financing. More frequent trading and longer-held leveraged positions generate more revenue for us, regardless of your result.
• Introducing agents are paid for introducing clients. An agent has a commercial interest in you opening and funding an account. An agent is not your adviser and is not authorised to manage your trading.

We maintain arrangements intended to manage these conflicts. Details are available on request from PENDING: support email.

Past performance does not predict future results. No figure shown anywhere on this site — in marketing, in a testimonial, or in a chart — should be read as an expectation of what you will achieve.

Testimonials published on this site come from clients who gave permission for their words to be used. They describe one person’s experience at one point in time. They are not representative of results generally, they are not verified by any third party, and they are not a promise of service levels or returns. Where a testimonial mentions a timeframe or an outcome, treat it as that client’s account of their own case.

Awards shown on this site record recognition by the awarding body named, in the year shown. An award is a commercial or industry accolade. It is not an endorsement by any regulator, it says nothing about the outcome of your own trading, and the criteria and entry requirements vary between awarding bodies.

The prices displayed on our public pages come from third-party sources, are indicative, and may be delayed. They are provided to illustrate market movement, not to be traded on. They are not our execution prices, they do not include our spread, and no decision should rest on them. Live, executable prices appear only inside the platform, on your account.

How trading profits and losses are taxed depends on your personal circumstances and on where you live, and tax rules change. We do not give tax advice and we do not withhold tax on your behalf. Reporting and paying what you owe is your responsibility. Take advice from a qualified professional in your own jurisdiction.

Prime FX operates through separate licensed entities. The entity that holds your account, and the regulator that supervises it, depend on where you live, and are named in your account opening confirmation. The regulators and licence numbers are published on our licensing page.

The protections available to you — including any compensation scheme, leverage cap or negative balance protection — come from the rules of that specific regulator, and differ between jurisdictions. Authorisation by a regulator is not an endorsement of our products and does not protect you against trading losses.

We do not offer services to residents of jurisdictions where doing so would breach local law, and we do not market to them. Nothing on this site is an offer or solicitation in any place where that would be unlawful. Satisfying yourself that using our services is lawful where you live is your responsibility.

Questions about anything in this document: PENDING: support email
PENDING: registered company name, trading as Prime FX
PENDING: registered address