Risk warning
The risks of trading CFDs with leverage
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. Most retail investor accounts lose money when trading CFDs. Consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
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Loss figures published by brokers in the catalogue
CFD providers serving retail clients in the European Union and the United Kingdom publish the percentage of their retail investor accounts that lose money when trading CFDs with them. The figures below were read from each legal entity's own website on the date shown. Providers recalculate them from time to time, so the current figure is on the linked page.
| Legal entity | Accounts losing money | Source |
|---|---|---|
| XTB S.A.KNF | 77% | xtb.com/pl |
| XTB LimitedFCA | 74% | xtb.com/en |
| Pepperstone EU LimitedCySEC | 72.9% | pepperstone.com/en-eu |
| Pepperstone LimitedFCA | 72.9% | pepperstone.com/en-gb |
| Pepperstone GmbHBaFin | 75.2% | pepperstone.com/de-de |
| IC Markets (EU) LtdCySEC | 72.52% | icmarkets.eu/en |
Read from the entity's website on September 16, 2026. On the same date we found no published figure on the websites of: Pepperstone Group Limited (pepperstone.com/en-au) and International Capital Markets Pty Ltd (icmarkets.com.au/en).
What a CFD is
A contract for difference (CFD) is an agreement to exchange the difference in the price of an underlying asset, such as a currency pair, an index, a share or a commodity, between the moment a position is opened and the moment it is closed. You do not own the underlying asset.
The provider is the other party to the contract and quotes the prices at which you open and close positions.
How leverage multiplies losses
Leverage lets you open a position larger than the money you set aside as margin. With leverage of 1:30, the margin is about 3.33% of the position value. A price move of 3.33% against you then wipes out the whole margin, and a move of 1% costs about 30% of it.
Gains and losses are calculated on the full position, not on the margin. Prices can move fast, including between trading sessions, and a position can then close at a much worse price than expected.
When your funds fall below the required margin, the provider can close your positions automatically, usually at a loss.
In the European Union and the United Kingdom, regulators cap leverage for retail clients, for example at 1:30 on major currency pairs and lower on other instruments. Where we have verified it, the limit for a specific entity and country is shown on the broker profile.
Other risks and costs
- Costs reduce results even on winning trades: spreads, commissions, overnight financing on positions held open, currency conversion, and inactivity or withdrawal fees.
- Losses can exceed the money deposited where negative balance protection does not apply. In the European Union and the United Kingdom it applies to retail clients; check the “Negative balance protection” field of the entity that would serve you.
- Clients classified as professional lose some of the protections of retail clients, including the leverage limits.
- Compensation schemes, where they exist, are limited in amount and do not cover trading losses.
- Automated strategies, Expert Advisors, signals and copy trading can lose money like any other trading. Past or simulated results do not predict future results.
- Cryptocurrency CFDs are especially volatile.
- Fake websites and unlicensed firms use the names of real brokers. Before sending money, check the legal entity and its licence number in the regulator's register.
Before you open an account
- Check which legal entity would serve you in your country and that it holds a licence from the regulator named.
- Read the key information document and the current fee schedule on the broker's website.
- A demo account lets you learn a platform without real money, but its results do not reflect real trading conditions.
- Trade only with money you can afford to lose.
Nothing on BrokerPick is investment advice or a recommendation. If you are not sure whether CFD trading is right for you, consider independent advice from an authorised adviser.