ForexFuturesMarket (ASIC Regulated Firm) issue
The document does not disclose all risks or every aspect of trading with them; it aims to help you make informed decisions.
You’re urged to read their full suite of documents (Terms & Conditions, Order Execution Policy, Costs & Charges, etc) before trading.
They offer trading services in CFDs (Contracts for Difference), which are derivatives — their value depends on another underlying instrument.
With a CFD you don’t own the underlying asset; you speculate on the price movement.
The company is always your counterparty (“principal”) when you trade with them — meaning you open and close positions with them.
Your profit/loss on a CFD = (Position size × opening price) – (Position size × closing price) – any fees/commissions.
Trading is “execution-only”: you give orders, they execute them; they do not provide investment advice in this service.
CFD products involve leverage (also called gearing) — you commit a smaller amount of capital for a larger exposure. This amplifies both gains and losses.
Past performance is not an indication of future results; the value of investments can go down as well as up.
Because of rapid market movements or other conditions, products may behave differently than expected. You must understand the risks.
They cannot guarantee your initial capital nor the value of your portfolio at any time.
CFD trading is speculative; large losses (up to or including all the funds you deposit) may occur in short time spans.
You may be required to deposit additional funds at short notice to support open trades (“margin”), and failing to do so can lead to positions being closed (“stopped-out”) without notice.
Under certain market conditions, your order may fail to execute or be executed at a worse price; for example stop-loss orders are not guaranteed to fill at the price you set in volatile markets (“gapping”).
Trading in instruments denominated in a currency other than your account base involves exchange rate risk.
Your funds are held in segregated client bank accounts (pooled with others) and you have an ownership claim to your share.
If the company becomes insolvent, your positions may be closed against your wishes.
Regulatory changes or cross-jurisdictional rules may affect your trading.
Online trading has additional risks: e.g., connectivity issues, software/hardware failure, etc.
Leverage risk: Because of leverage, small adverse moves can wipe out your capital quickly; though the company states that for retail clients they offer negative balance protection (so you won’t owe more than your account balance) in their platform.
Example leverage levels given: major FX pairs up to 30:1; other instruments lower.
Volatility & market access: Prices can move rapidly due to factors outside your or their control (supply/demand, politics, economic events). Some instruments trade irregularly or with low liquidity; you may struggle to enter or exit at your desired price.
Closing of open trades: In illiquid or extreme market conditions you may not be able to close a position immediately; losses may accumulate before you can act.
Margin requirements: You’ll need to deposit margin to open/maintain a trade; if your margin falls below the required level you may receive a margin call (or automatic stop-out) and the company may increase margin requirements under abnormal conditions (possibly with short or no notice).
Additional obligations: You should understand their charging system (spreads, commissions, financing/swap fees); trades may incur tax or other duties; corporate events (in underlying instrument) may affect your positions; you are responsible for any taxes.
The disclosure is reviewed periodically and the company reserves the right to amend it at its discretion.
They are covered by the Financial Services Compensation Scheme (FSCS) for eligible clients if the firm fails. For investments, the FSCS can cover 100% up to £85,000 per person, per firm, per category.
If you don’t understand something in the risk disclosure you should contact their compliance department. forexfuturesmarket.com
The document includes some worked examples to show how profit and loss might work in CFD trades (e.g., FX pair EUR/USD with 30:1 leverage; gold CFD with 20:1). These are illustrative only and not guarantees. forexfuturesmarket.com
It includes the standard risk warning: “CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage.”