Risk warning for forex and CFD trading
Most retail accounts lose money
When it tightened the rules on CFDs in 2018, the European Securities and Markets Authority (ESMA) found that 74–89% of retail accounts typically lose money. Brokers licensed in Europe still have to publish their own loss ratio on their websites.
Leverage magnifies losses
At 1:500 leverage, 100 USD of margin controls a 50,000 USD position. A move of just 0.2% against you wipes out that margin. Many brokers outside Europe offer very high or even “unlimited” leverage. High leverage does not make you a better trader; it only makes an account blow up faster.
Legal risk where brokers are not licensed
In many countries no retail forex broker is licensed locally, or only a few are. If you trade with an offshore broker there, local law may not protect you in a dispute, and sending money abroad to trade may breach foreign exchange rules. Our reviews state the position in each country we cover.
Common scam patterns
- Fixed monthly returns, profit sharing or “capital guarantees”.
- “Experts” on Telegram, WhatsApp or Facebook who invite you to a signals group and later ask you to deposit more to “unlock” a withdrawal.
- A licence that cannot be verified, or that belongs to another company.
- Requests to pay into a personal bank account instead of the broker’s official methods.
- Withdrawals blocked until you pay a “fee” or “tax”.
Nothing on XRay Broker is investment advice
We publish sourced information so you can make your own decision. Only trade money you can afford to lose entirely.