Risk Disclosure2018-09-11T17:47:54+00:00

RISK DISCLOSURE

Risk Disclosure & Disclaimer: This risk warning notice (herein the “Notice”) is provided to all Clients and any Prospective Client who is willing to enter into an agreement with the Company for opening an active investment or trading account with the Company, under the provisions of the Financial Advisory and Intermediary Services Act 37 of 2002 (FAIS Act) (herein the “Law”), and the General Code of Conduct for Authorized Financial Services Providers and Representatives as amended from time to time.

The Clients and any Prospective Clients must read this notice carefully and make sure he or she understands all the following paragraphs before deciding to open a trading account with the company and before commencing any trading activity. The Risk Disclosure is easily accessible and available on the Company’s website at the end of every single page.

It is noted that this Notice and the General Risk Disclosure document found on the Company’s website cannot and do not disclose or explain all the risks and other significant aspects involved in dealing in Derivative Financial Instruments offered by the Company (Such as Contracts for Difference CFDs). The Notice was designed to explain in general terms the nature of the risks involved when dealing in financial trading Instruments and assets on a fair and non-misleading basis, according to the Law. The Client should be aware of multitude of risks associated with trading in Leveraged/Geared trading accounts including CFDs, Futures and other financial products and derivatives including currencies, indices, Stocks & ETF’s and commodities.

If a client does not understand the risks involved in trading in financial instruments and leveraged derivative trading products, he/she should seek and independent advice from an authorized financial adviser or a seasoned professional.

Clients’ and prospective clients should acknowledge that they may run a risk of incurring losses because of the trading with leveraged/geared (Margin) accounts. The Currency markets, also known as the Foreign Exchange Markets (FOREX) or the FX markets, the Over the Counter Market (OTC) and Contracts for Difference CFD’s are leveraged (Geared) financial derivative products and instruments which include a high level of risk and are not suitable or appropriate for all clients. Clients may sustain loss of some or all of their invested capital.

The client (Account holder) is liable for either a portion or the entire loss of margin account for the usage of leverage in his or her trading or investing account. A proper and thorough consideration of the risks associated due to usage of leverage by the clients in their trading or investing account is highly recommended and as well as consideration for market volatility and unforeseen events that may affect the global financial & capital markets. Account holders are fully responsible for any investment or trading decisions they decide to make, and such decisions should be based solely on their evaluation of their financial circumstances, investment/trading objectives, risk tolerance, and liquidity needs.

Trading on leveraged and or geared capital means that an account holder/trader or investor can trade amounts significantly higher than the funds they invested and have deposited in to their account, which only serves as margin. Clients’ (Account holders) should not trade leveraged financial products with funds that they cannot afford to lose.

We encourage all client’s that are intending to trade or invest, with leveraged accounts to be fully aware of the risks, both the fundamental aspects and the technicalities associated with being a successful trader or investor. Appropriate training is highly recommended. Consult with an independent qualified advisor and or a seasoned professional if necessary.

The company reserves the right to either open, or alternatively decline applications for an individual, corporate, partnership, or managed accounts.

No Advice

Any opinions, news, research, analyses, prices, or other information contained on this website are provided as general market commentary, and do not constitute investment or trading advice. The company is not liable for any loss or damage, including without limitation, any loss of profit, which may arise directly or indirectly from use of or reliance on such information.

The company as a regulated broker is a provider of trading platforms, tools, financial instruments, and quotes necessary to the interested trading and or investing clients. The company does not provide financial or trading advisory services. Any analytical information displayed on its website or provided by staff and affiliates written or verbal is for educational and general informational purposes only and should never be considered or construed as a trading or investment recommendation or solicitation of financial investments or trading advisory on any financial asset or products.

Past performance of financial assets or derivative products for investment or trading purposes is not indicative of future results. Therefore, no current client or prospective client should assume that the future performance of any trading financial asset, derivative products and investment or trading strategy can be inferred or implied by past performance.

The company makes no representation and assumes no liability as to the accuracy or completeness of the information provided, nor any loss arising from any investment based on any financial or information data supplied by any employee of the company and or a third party or otherwise. Any financial and or market commentary and observations provided by the company and its staff are strictly for educational purposes and the general understanding of financial markets, instruments, products and general news & economic events. Account holders are fully responsible for any investment or trading decisions that they decide to make, and such decisions should be based solely on their evaluation of their financial circumstances, investment/trading objectives, risk tolerance, and liquidity needs.

Risks associated with Leverage/Geared accounts

Trading with Leveraged/Geared capital means that a trader or an investor can trade amounts significantly higher than the funds they have deposited in to their account, which only serve as margin. High leverage can increase substantially the potential return, but it can also lead to a significant increase in potential losses. Trading with leverage/geared accounts carries high level of risk and is not suitable for all clients. Clients should not trade or invest with funds they cannot afford to lose.

Margin requirements

The client (Account holder) should be aware of the implications of Over the Counter OTC and CFD financial derivative transactions and the specific margin requirements which are applied thereto. The Client is required to deposit funds in his trading account in order to open a position and the funds should reflect the specific margin required. The Client shall be informed of the specific Margin requirement for each individual account before he or she begins trading; such information is available to the Client upon completion of the necessary information required by the Company to approve them as a Client of the Company. Margin requirements will depend on the Underlying asset of the CFD or OTC Currency pair, level of leverage chosen and the value of position to be established. The company and its staff are not obligated to notify the Client of any ‘Margin Call’ to sustain an open position.

The Company has the discretionary right:

  1. To start closing positions when ‘Margin Level’ decreases to 50% level and below of the required ‘Margin Level’ for any particular open and ongoing financial derivative Instrument and products.
  2. To close automatically all open positions at market prices, if ‘Margin Level’ falls below 40% of the required ‘Margin Level’ for any particular Financial Instrument and derivative products.

Volatility of financial markets & global events<

The financial assets and products that are traded on the global exchanges and financial derivatives namely OTC Over the counter Currencies, Equity Indices, and Commodities and their CFD’s derivative equivalents can occasionally have a high volatility (Large price swing movements and or price gaps), which can either bring a substantial profit to client’s accounts (Leveraged and Geared accounts) or inversely cause a significant loss.

Trading via Internet

When clients’ (Account holders) trades online (via the internet), The company shall not be liable for any claims, losses, damages, costs or expenses, caused, directly or indirectly, by any malfunction, disruption or failure of any power failure (Electricity), transmission, communication system, computer facility or trading software, whether belonging to the company, client, and any exchange or any settlement or clearing systems.

Trading via Telephone

The company will not be responsible for disruption, failure, or malfunction of telephone facilities and does not guarantee its telephone availability. For the avoidance of doubt, clients’ (Account holders) should be aware that the company and its staff may not be reachable by telephone at all times.

General Risk’s

  1. At market conditions, different from normal, the time of the client’s order processing may increase.
  2. Any analytical information displayed on this website or is provided by company is for general informational purposes only and should never be considered as trading or investment recommendation. It is only for general informational understanding of financial markets, news, and events.
  3. Past performance of any financial asset, derivative product, and trading instruments for investment or trading purposes is not indicative of future results or success.
  4. Due to occasional market volatility setting the order execution platform Stop Loss Levels cannot be executed and fully limit losses.
  5. Risks that can be associated with the lack of knowledge of the financial markets, financial products, trading proficiency, and the basic understanding of the trading platform.
  6. Public or Market Holiday’s or Friday’s closing prices might be different from the opening prices (Price Gap) following the weekend or when trading on a financial product resumes or when the market reopens. Clients and account holders should always consider and understand the unpredictability of the events impacting the global financial and capital markets.

Technical Risks

There are potential risks that may occur on the client’s side, such as: failure of utility power (Electricity), hardware, software, lost connection (Internet connectivity), problems with communication systems, connectivity speeds, and faulty or incorrect configuration of the trading platform etc.

Force majeure circumstances (Irresistible force or unforeseen events)

The company is not responsible for losses or receiving earned funds that are not in full volume, in case any force majeure circumstances occur, namely natural disasters, extraordinary weather conditions, threat of war, act of terrorism, revolution, illegal actions of third parties, public unrest, riot, decisions of state bodies etc.

Communication Risk

  • Information sent through email by the company and its staff are not in encrypted form would not be protected from unauthorized access.
  • According to our Privacy Policy, the company does its utmost to keep client’s information in full safety. However, in case of a third party’s access to this information (e.g., by accessing the client’s email), the company does not bear any responsibility.
  • The company is not responsible for financial losses in case of not receiving important message because of technical problems on the client’s side.
  • The client and or the account holder bear all responsibility for keeping their password confidential (Not to share or disclose personal account password or any other security information).

Psychological Risk

Trading and or investing in the financial markets require a proficient level of knowledge, focus, discipline and the understanding of the impact that human emotions like fear, panic, greed, and euphoria, etc might have and their effect on trading or investing. Therefore it is not suitable or recommended for all clients.

Risk Associated with Trading via:

  • Social, Mirror & Copy-Cat
  • Signal Providers
  • Financial Advisers
  • Managed Accounts

The company as one of the services provided to its account holders (Only at their full discretion and as added option) is for Social and or Mirror/Copycat trading by copying and or mirroring the trades from other traders. Furthermore; client’s who wish to use independent financial advisers and or external independent managed trading accounts shall be at account holder’s full discretion (Independent choice, mandate, option, sole judgment, and or preference). Any client who may decide to use this facility should fully understand that:

  1. Past performance and past profitability is not an indication of any future results or guarantees of any future success. A trader, account Manager, Financial Adviser and or a signal provider who has been successful in generating profits for a period of time may not continue to be so in the future.
  2. The decision of whether to use the services offered by the company and its trading venues and platforms is solely at the discretion of the client and is his/her responsibility alone to trade with caution.
  3. The decision to activate, to follow, to copy or to mirror from available pool of traders and or to use of financial adviser, trading Signal Provider and or managed account traders is at the sole discretion of the client and is his/hers responsibility (Independent choice, mandate, option, sole judgment, and or preference).
  4. Traders on Social, Mirror, Copycat trading platforms, and or any third party trading Signal Provider system, Financial Advisers, and or Account Managers are independent and external to the company.
  1. The company, its employees and its entire staff are strictly prohibited and are not eligible to provide trading recommendations, financial advisory services, trading signals or to trade individual or joint accounts on behalf of the clients.
  2. The company bears no responsibility for the success or lack thereof of from particular trader/investor or traders/investors and or signal provider and or financial adviser & or traded account manager.

The clients’ and account holders have a full discretion and it is their responsibility to monitor their account activities and implement prudent and cautious risk management methods and strategies. The company strongly recommends to all clients who wish to use the Social, Mirror, Copycat and or to follow trading signal providers and or financial advisers and or account mangers/traders venues to consult (Seek independent advice) with a qualified advisor and or a seasoned professional. The company does not provide financial and trading advisory services.

August 2018