Risk Warning

Last updated: January 2025

Important: Trading CFDs, forex, futures, and other leveraged products carries a high level of risk and may not be suitable for all investors. You could lose more than your initial investment. Only trade with money you can afford to lose.

The Reality of Trading

Let's be direct: most retail traders lose money. This isn't speculation - it's what brokers themselves report. Depending on the broker and product, between 60-80% of retail investor accounts lose money when trading CFDs and forex.

Partner codes and welcome bonuses don't change this fundamental reality. A bonus might give you more capital to start with, but it doesn't make profitable trading any easier.

What You're Actually Trading

CFDs (Contracts for Difference)

When you trade CFDs, you don't own the underlying asset. You're speculating on price movements. Key risks include:

  • Leverage amplifies losses - A 10:1 leverage means a 10% adverse move wipes out your position entirely
  • Overnight fees - Holding positions costs money, eating into any gains
  • Gap risk - Markets can open at significantly different prices than they closed
  • Counterparty risk - You're trading against the broker, who profits when you lose

Forex Trading

Currency markets are highly liquid but also highly volatile. Risks include:

  • 24-hour markets - Prices move while you sleep
  • Economic events - Interest rate decisions, employment data, and political events can cause sudden, large moves
  • High leverage - Often 30:1 or higher, meaning small moves have big consequences

Futures Trading

Futures contracts have expiration dates and their own set of risks:

  • Contract expiry - You must close or roll positions before expiration
  • Margin calls - If the market moves against you, you may need to deposit more funds immediately
  • Liquidity risk - Some contracts are thinly traded, making it hard to exit positions

Leverage: The Double-Edged Sword

Leverage lets you control large positions with small deposits. Brokers advertise leverage as a benefit, but it's also the primary reason traders blow up their accounts.

Example: With 100:1 leverage, a $1,000 deposit controls $100,000 in the market. A 1% move against you loses $1,000 - your entire deposit. Gone in minutes.

Some jurisdictions (like the EU and UK) have capped retail leverage to protect traders. If a broker offers extremely high leverage, consider why they're doing so and who really benefits.

About Bonuses

Welcome bonuses and partner code promotions are marketing tools. They're not free money. Before accepting any bonus:

  • Read the terms - Most bonuses require trading a certain volume before withdrawal
  • Understand the requirements - Volume requirements can be substantial (often 10,000x the bonus amount or more)
  • Know the time limits - Bonuses typically expire if conditions aren't met within a certain period
  • Check withdrawal rules - Some bonuses restrict how and when you can withdraw funds

A bonus can be useful if you were going to trade anyway, but don't let a bonus tempt you into trading more or riskier than you otherwise would.

Regulation Matters (But Isn't Everything)

The brokers we list are regulated by recognized authorities (FCA, ASIC, CySEC, etc.). Regulation provides some protections:

  • Segregated client funds
  • Negative balance protection (in some jurisdictions)
  • Dispute resolution mechanisms
  • Financial compensation schemes (up to certain limits)

However, regulation doesn't protect you from trading losses. You can lose your entire deposit trading with a fully regulated broker if the market moves against you.

Before You Trade

Ask yourself honestly:

  • Can I afford to lose this money entirely?
  • Do I understand how this product works?
  • Have I practiced with a demo account?
  • Do I have a trading plan and risk management strategy?
  • Am I trading based on analysis or emotion?

If you're unsure about any of these, consider seeking independent financial advice before trading.

Country-Specific Restrictions

Some products aren't available everywhere:

  • Spain - CFD trading is restricted. Spanish residents should consider futures products like AvaFutures instead.
  • United States - CFD trading is not permitted for US residents. US traders have access to forex through CFTC-regulated brokers and futures markets.
  • Belgium - Binary options and certain CFDs are banned for retail investors.

Always check that a broker and product are available and legal in your country before signing up.

Our Role

PartnerCode.org provides information about broker partner codes and bonuses. We are not:

  • Financial advisors
  • Licensed to provide investment advice
  • Responsible for your trading decisions or outcomes

We receive compensation when you sign up through our links. This creates a conflict of interest you should be aware of. We try to be honest about the risks, but ultimately you're responsible for your own trading decisions.

Getting Help

If trading is causing financial stress or you feel you may have a gambling problem, seek help:

  • Set strict limits on your trading
  • Consider self-exclusion options if available
  • Talk to a financial counselor
  • Contact gambling support services in your country