Risk Disclosure Statement

Risk Warning Notice - CFD and Forex Trading


This notice ("Risk Warning Notice") is provided to you in compliance with the rules of the Financial Conduct Authority ("FCA").

This Risk Warning Notice cannot and does not disclose all the risks and other significant aspects of CFD and Forex Trading. You should not engage in CFD or Forex Trading unless you understand the nature of CFD and/or Forex Trading, how they work, how you make a profit or a loss and the extent of your exposure to risk and loss. Note in particular that your losses can be unlimited and no deposit or other amount you have paid (such as Initial Margin (we also call this Margin) or Variation Margin) will limit your losses. You should be satisfied that CFD and Forex Trading is suitable for you in the light of your circumstances and financial position.

Although CFD and Forex Trading can be utilised for the management of investment risk, CFD trading and Forex Trading are unsuitable for many investors.

If you are in any doubt seek professional advice.

General

When you engage in CFD or Forex Trading you are placing a trade in relation to movements of prices set by FCI - Foreign Currency Innovations. Our prices relate to prices of the underlying. Our Execution Policy gives further details in relation to our prices. We can change our prices at any time, in particular having regard to changes in the underlying to which our prices relate.

Whether you make a profit or a loss depends on how our price has moved between when you opened your trade and when you closed your trade. Our terms and conditions clarify how you make a profit or a loss. Your trades with us will be subject to our terms and conditions. It is in your own best interests to read and understand them before you engage in CFD or Forex Trading with us. CFD and Forex Trading carries a high degree of risk. The "gearing" or "leverage" available in CFD and Forex Trading (i.e. the funds we require at the outset compared to the size of trade you can place) means that a small deposit (we call this Initial Margin or Margin) can lead to large losses as well as gains. It also means that a relatively small movement can lead to a proportionately much larger movement in the size of any loss or profit can work against you as well as for you. CFD and forex trades are subject to payment of Variation Margin. If the market moves against you, you may be called upon to pay substantial additional Variation Margin at short notice to maintain your Open positions. If you fail to do so within the time required, your Open positions may be closed at a loss and you will be responsible for the all losses.

Your losses may be unlimited. You may lose all amounts you deposit with us such as Initial Margin (we also call this Margin) or Variation Margin. You have to pay us all losses you sustain as well as all other amounts payable under our terms and conditions such as interest and costs. If you decide to engage in CFD and/or Forex Trading, you must accept this degree ofrisk. No credit is extended to you. Neither a variation margin credit allocation nor an initial margin credit allocation constitute a credit facility and neither of them will limit your losses or liability. The amount you are prepared to risk should include any variation margin credit allocation and any initial margin credit allocation.

CFD and forex trades can only be settled in cash.

As mentioned above, our prices relate to prices of the underlying; however, you do not acquire the underlying nor any rights or delivery obligations in relation to it.

CFD and forex trades are not traded on or under the rules of a recognised or designated investment exchange. Consequently, engaging in CFD and/or Forex Trading may expose you to substantially greater risks than investments which are so traded.

CFD and forex trades are legally enforceable. This means that, for example, we can take legal action to recover money you owe us.

The potential for profit or loss from transactions on foreign markets or in foreign denominated contracts may be affected by fluctuations in foreign exchange rates.

Interest rates may affect whether you make a profit or a loss.

Markets

You can only engage in CFD and/or Forex Trading on the markets we make available; we can change those markets.

Collateral

If you deposit collateral with us we will agree with you in writing how that collateral will be dealt with.

Charges

Our terms and conditions set out all charges you have to pay. Note also that charges may take the form of an additional spread.

Volatility

The markets we offer (and our prices) are derived from related underlyings. We have no control over movements in the underlyings; movements in the underlyings may be volatile and unpredictable. Those movements will affect our prices, whether or not you can open and close a trade and the price at which you can do so.

Under certain trading conditions it may be difficult or impossible to close an open position. This may occur, for example, if the price of the underlying rises or falls in one trading session to such an extent that under the rules of the relevant exchange trading is suspended or restricted.

Orders

Youcan use orders to limit your losses, but the only type of order that is guaranteed to limit your loss to an agreed execution price is a guaranteed stop loss order. For all other orders, the price at which they may be executed is not guaranteed and so the extent to which they may limit your loss is not guaranteed; for example, movements in the underlying may make it impossible to execute your order at the agreed execution price.

Please also note that for all orders (including guaranteed stop loss orders) you may sustain the loss (which your order is intended to limit) in a short period of time. Our terms and conditions explain how orders operate; it is in your own best interest to make sure you understand how ordersoperate before you place an order.

Compensation

FCI is covered by the Financial Services Compensation Scheme. Depending on the nature of the bet/trade concerned, the circumstances of your claim and the rules of that scheme you may be entitled to compensation if we cannot meet our obligations to you. In general if you are entitled to be compensated, you are covered for the first £75,000.00 of your claim. Further information is available from the Financial Services Compensation Scheme.

FCI's main business is the provision of forex, spread betting and CFD products and services. Its registered office is Suite 1C, Union House, 117 High Street, Billericay, Essex CM12 9AH.

FCI - Foreign Currency Innovations Limited is authorised and regulated by the Financial Conduct Authority under FCA Register number: 616985 Registered in England and Wales under Companies House register number: 07274218. This can be confirmed by visiting the Financial Conduct Authority website at www.fca.org.uk/register or by contacting the FCA on 0845 606 1234

If there is anything you do not understand, please kindly contact our Customer Services Team on : 0203 7511583