Risk disclosure

Last updated: 6 August 2026

Trading leveraged products carries a high risk of loss

Contracts for difference (CFDs), leveraged spot forex and similar margined products are complex instruments. They carry a high risk of losing money rapidly because of leverage.

Analysis by EU national regulators found that between 74% and 89% of retail investor accounts lose money trading these products. That is not a warning about unusual cases. It is the ordinary outcome for the substantial majority of retail participants.

You should consider whether you understand how these products work and whether you can afford to take the high risk of losing your money. Only trade with capital you can lose entirely without affecting your financial position.

Leverage works in both directions

Leverage allows a small deposit to control a much larger position. Marketing tends to describe this as increased opportunity. It increases loss at exactly the same multiple.

With 30:1 leverage, a 3.3% adverse move eliminates your margin. With higher leverage available on some offshore entities, the adverse move required is smaller still. This is the single largest contributor to the loss rates above.

Leverage limits differ by jurisdiction and by the specific entity holding your account. Retail leverage is capped in the EU, UK and Australia, and is often far higher on offshore entities serving other regions.

Prop firm evaluations are not investments

A proprietary trading firm evaluation is a paid assessment of trading skill. It is not an investment, a savings product, a deposit, employment, or a regulated financial service.

Your evaluation fee is at risk and is generally non-refundable. The majority of participants do not pass. Passing does not guarantee a payout.

Most retail prop firms operate in simulated environments. A “funded” account is typically a notional allocation rather than client money you own or control. Profit splits are paid on simulated performance.

Prop firms are generally not regulated as brokers or investment firms. Segregated client money rules, investor compensation schemes and financial ombudsman access usually do not apply. If a firm becomes insolvent or declines to pay, your remedies may be limited to ordinary commercial litigation.

Several prop firms have closed, suspended payouts or materially changed terms at short notice. Treat any fee paid as money you can afford to lose entirely.

Jurisdiction and eligibility

Products described on this site are not available in every country. Many brokers reviewed here do not accept residents of the United States, where retail forex is restricted to firms registered with the CFTC and NFA.

Other jurisdictions restrict or prohibit CFD marketing entirely. Prop firm availability is similarly restricted in some countries and changes without notice.

It is your responsibility to confirm that a product is lawfully available to you and that the provider is permitted to serve your jurisdiction before opening an account.

Verify regulation yourself

Any website can claim to be regulated. Claims are worth nothing without verification.

• Identify the exact legal entity named in your client agreement, not the brand name.
• Find that entity’s licence number and check it on the regulator’s own public register.
• Confirm which protections apply: segregated funds, negative balance protection, compensation scheme access.
• Check whether the entity serving your country is the regulated one or a different offshore entity.

Past performance and projections

Past performance is not indicative of future results. Any performance figures, backtests, case studies or examples referenced on this site or by any provider describe specific historical situations and are not representative of typical results or a prediction of future outcomes.

Be particularly sceptical of advertised profit figures, funded trader payout totals and success stories. These are selected by the party publishing them.

Nothing here is advice

FXBrokerLab is a research and comparison publisher. We are not authorised or regulated by the FCA, CySEC, ASIC, SEBI, CFTC or any other financial regulator, and we do not provide regulated financial services.

Nothing on this site is investment, financial, legal or tax advice, or a personal recommendation to trade any instrument or use any provider. If you need advice, consult a professional authorised in your own jurisdiction.

Operator

FXBrokerLab (fxbrokerlab.com) is a financial research and comparison platform operated by Pixel Pulse (Proprietor: Sajid Yakheen), a sole proprietorship registered in India under GSTIN 27ABUPY6848D1ZR, Pune, Maharashtra. Contact: info@fxbrokerlab.com.