Trading is not on a regulated market or exchange – your dealer is your trading partner which is a direct conflict of interest. Before you engage in any retail foreign exchange trading, you should confirm the registration status of your counterparty

The off-exchange foreign currency trading you are entering into is not conducted on an interbank market, nor is it conducted on a futures exchange subject to regulation as a designated contract market by the Commodity Futures Trading Commission. The foreign currency trades you transact are trades with the futures commission merchant or retail foreign exchange dealer as your counterparty. WHEN YOU SELL, THE DEALER IS THE BUYER. WHEN YOU BUY, THE DEALER IS THE SELLER. As a result, when you lose money trading, your dealer is making money on such trades, in addition to any fees, commissions, or spreads the dealer may charge.

An electronic trading platform for retail foreign currency transactions is not an exchange. It is an electronic connection for accessing your dealer. The terms of availability of such a platform are governed only by your contract with your dealer

Any trading platform that you may use to enter off-exchange foreign currency transactions is only connected to your futures commission merchant or retail foreign exchange dealer. You are accessing that trading platform only to transact with your dealer. You are not trading with any other entities or customers of the dealer by accessing such platform. The availability and operation of any such platform, including the consequences of the unavailability of the trading platform for any reason, is governed only by the terms of your account agreement with the dealer.

Your deposits with the dealer have no regulatory protections

All of your rights associated with your retail forex trading, including the manner and denomination of any payments made to you, are governed by the contract terms established in your account agreement with the futures commission merchant or retail foreign exchange dealer. Funds deposited by you with a futures commission merchant or retail foreign exchange dealer for trading off-exchange foreign currency transactions are not subject to the customer funds protections provided to customers trading on a contract market that is designated by the Commodity Futures Trading Commission.

Your dealer may commingle your funds with its own operating funds or use them for other purposes. In the event your dealer becomes bankrupt, any funds the dealer is holding for you in addition to any amounts owed to you resulting from trading, whether or not any assets are maintained in separate deposit accounts by the dealer, may be treated as an unsecured creditor’s claim.

You are limited to your dealer to offset or liquidate any trading positions since the transactions are not made on an exchange or market, and your dealer may set its own prices

Your ability to close your transactions or offset positions is limited to what your dealer will offer to you, as there is no other market for these transactions. Your dealer may offer any prices it wishes, and it may offer prices derived from outside sources or not in its discretion. Your dealer may establish its prices by offering spreads from third party prices, but it is under no obligation to do so or to continue to do so. Your dealer may offer different prices to different customers at any point in time on its own terms. The terms of your account agreement alone govern the obligations your dealer has to you to offer prices and offer offset or liquidating transactions in your account and make any payments to you. The prices offered by your dealer may or may not reflect prices available elsewhere at any exchange, interbank, or other market for foreign currency.

Paid solicitors may have undisclosed conflicts

The futures commission merchant or retail foreign exchange dealer may compensate introducing brokers for introducing your account in ways which are not disclosed to you. Such paid solicitors are not required to have, and may not have, any special expertise in trading, and may have conflicts of interest based on the method by which they are compensated. Solicitors working on behalf of futures commission merchants and retail foreign exchange dealers are required to register. You should confirm that they are, in fact registered. You should thoroughly investigate the manner in which all such solicitors are compensated and be very cautious in granting any person or entity authority to trade on your behalf. You should always consider obtaining dated written confirmation of any information you are relying on from your dealer or a solicitor in making any trading or account decisions.

FINALLY, YOU SHOULD THOROUGHLY INVESTIGATE ANY STATEMENTS BY ANY DEALERS OR SALES REPRESENTATIVES WHICH MINIMIZE THE IMPORTANCE OF, OR CONTRADICT, ANY OF THE TERMS OF THIS RISK DISCLOSURE. SUCH STATEMENTS MAY INDICATE POTENTIAL SALES FRAUD.

THIS BRIEF STATEMENT CANNOT, OF COURSE, DISCLOSE ALL THE RISKS AND OTHER ASPECTS OF TRADING OFF-EXCHANGE FOREIGN CURRENCY TRANSACTIONS WITH A FUTURES COMMISSION MERCHANT OR RETAIL FOREIGN EXCHANGE DEALER.

Performance of non-discretionary retail forex customer accounts

For the calendar quarter ending December 31, 2023, there were 7,150 active non-discretionary trading accounts of which 34.43% were profitable and 65.57% were unprofitable.

For the calendar quarter ending March 31, 2024, there were 7,816 active non-discretionary trading accounts of which 36.23% were profitable and 63.77% were unprofitable.

For the calendar quarter ending June 30, 2024, there were 7,754 active non-discretionary trading accounts of which 35.53% were profitable and 64.47% were unprofitable.

For the calendar quarter ending September 30, 2024, there were 7,276 active non-discretionary trading accounts of which 32.55% were profitable and 67.45% were unprofitable.

PAST PERFORMANCE IS NOT NECESSARILY INDICATIVE OF FUTURE RESULTS.

Additional risk disclosure statement

FOREIGN CURRENCY TRADING IS HIGHLY SPECULATIVE AND RISKY. IT IS ONLY SUITABLE FOR THOSE CUSTOMERS WHO UNDERSTAND, AND ARE WILLING TO TAKE ON, THE FINANCIAL AND OTHER RISKS INVOLVED, AND WHO HAVE THE RESOURCES OR ASSETS TO WITHSTAND LOSSES THAT MAY BE SIGNIFICANTLY GREATER THAN ANY MARGIN OR DEPOSITS YOU HAVE MADE.

YOU SHOULD SEEK INDEPENDENT ADVICE ABOUT THE RISKS INVOLVED IF YOU ARE UNSURE WHETHER FOREIGN CURRENCY TRADING IS SUITABLE FOR YOU. You represent, warrant and agree that you understand these risks; that you are willing and able, financially and otherwise, to assume the risks of trading foreign currency and that loss of all your funds deposited with IG will not significantly impact your lifestyle or financial situation.

The high leverage associated with trading foreign currency can result in significant losses due to price changes, especially during periods of volatility in the underlying market. IG’s margin policies may require that additional funds be provided immediately without prior notification. Failure to maintain the required margin amounts may result in the liquidation of any open positions without prior notice.

FOREX IS AN OVER THE COUNTER (OTC) MARKET, MEANING THE FOREIGN CURRENCY TRADING YOU ARE ENTERING INTO IS NOT CONDUCTED ON AN EXCHANGE. YOUR DEPOSITS ARE NOT SUBJECT TO ANY REGULATORY PROTECTIONS.