Warning of trading on the external broker banner

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R
Raden
01 Mar 2021, 10:39 551 Views
Why is it that some foreign brokers have warnings in their banners that say, "Beware, trading causes losses," and so on. But why are there also some that don't have it?

1 Answer

R
rizki rosadi 04 Mar 2021, 07:14

@Raden: Risk warnings on trading brokers are mandatory and this is a regulation. Usually, risk warnings are located at the bottom of a broker's website. Here are some risk warning sentences on several brokers:

  • Risk Warning: Forex and CFD trading involve a significant risk to your invested capital. Please read and ensure you fully understand our Risk Disclosure.
  • Risk warning: Before you start trading, you should completely understand the risks involved with the currency market and trading on margin, and you should be aware of your level of experience.
  • Please note that foreign exchange and other leveraged trading involve a significant risk of loss. It is not suitable for all investors and you should make sure you understand the risks involved, seeking independent advice if necessary.

Good brokers always have risk warnings on their main website. I don't know of any brokers that don't include risk warnings on their main website. It is best to trade with brokers that include risk warnings on their main website.

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