General Risk Disclosure
IGOFX does not expressly or impliedly, guarantee nor make any representation concerning the completeness, the adequacy or accuracy of this disclosure documents nor has IGOFX endorsed or passed any merits of participating in the Commodity Derivatives market/trading. This brief statement does not disclose all of the risks and other significant aspects of trading. In the light of the risks involved, you should undertake transactions only if you understand the nature of the contractual relationship into which you are entering and the extent of your exposure to risk. This disclosure provides relevant information about the risks associated with investment products, which one may invest in with IGOFX. IGOFX provides a wide range of investment services in relation to a number of products. Investment products offered by IGOFX are contracts for differences (CFDs) on currencies, stocks, commodities, indices and exchange traded funds (ETFs). These products carry a high degree of risk and may not be suitable for many investors. This disclosure provides you with information about the risks associated with CFDs. However, it cannot explain all the risks nor how such risks relate to your personal situation. If you are in doubt, you should seek professional advice. It is important that you fully understand the risks and potential losses involved before deciding to trade with IGOFX. You must have sufficient financial resources to bear such risks and you need to monitor your own positions carefully. It is impossible to provide all information concerning potential risks due to the sheer number of possible situations in the market.CFD trading involves risk to your capital. You should not invest money that you cannot afford to lose. However, your lose will not be more than the equity in your account.
CFD stands for “Contract For Difference”, which means you are not buying the underlying asset, but rather purchasing a contract to settle the difference in the initial and ending price of the asset. When trading CFDs, you generally trade on margin, meaning you only have to deposit a small percentage of the overall value of your position. This is known as “Leverage”, and even the smallest market movements can hugely impact your trading account, negatively or positively.If the market moves against you, your total loss sustained may be greater than the funds invested in a specific position. The Client is entirely responsible for the accounting risks, using financial resources, and for choosing a sufficient sales strategy.You are solely responsible for all losses on your account up to the equity in your account. Before deciding to trade on margin, carefully consider your investment objectives, level of experience, and risk appetite.Our CFDs are not listed on any exchange. CFDs involve greater risk as market liquidity cannot be guaranteed and it may be more difficult to liquidate an existing position. The prices and other conditions are set by us in accordance with our obligation to provide the best execution as stated in our policy, to act reasonably and in accordance with the applicable Terms and Conditions. The characteristics of our CFDs can vary substantially from the actual underlying market or instrument. IGOFX does not aim to make profits from our clients from the outcome of of corporate events such as rights issues, takeovers, mergers, share distributions or consolidations and open offers. We aim to reflect the treatment we receive, or, would receive if we were hedging our exposure to you in the underlying market. Ultimately however, you are not dealing in the underlying market and therefore in relation to our CFDs the treatment you receive may be less advantageous than if you owned the underlying instrument.CFDs are not suitable for long term investor. If you hold a CFD open over a long period of time, the associated costs increase (eg. overnight fees), and it may be more beneficial to buy the underlying asset instead.Sudden market movements, known as “gapping” may occur, causing dramatic shift in the price of an underlying asset. Gapping may occur when the underlying market is closed, which means the price on the underlying market may open at a significantly different level, and at a less advantageous price for you.At all times during which you have open positions, you must ensure that your account meets IGOFX margin requirements, which may change from time to time. Therefore, if our price moves against you or if our margin requirements have changed, you may need to provide us with significant additional funds to meet your margin requirement, at short notice, to maintain your open positions. If you do not do this, we will be entitled to close one or more or all of your positions and You alone will be responsible for any losses incurred as a result.
Before we open an account for you, we are required to assess whether the product(s) and/or services chosen are appropriate for you, and to warn you if, based on the information you provide, any product or service is not appropriate. If you decide to continue and open an account with us, you are confirming that you are aware and understand the risks involved.
You should further ensure that you are able to monitor positions on your account at all times, as you are held responsible for this. We will not be responsible for your account monitoring positions.
Although the IGOFX trading platform is automated and we are giving you the best execution available, it is possible that the market price could change between order placement and execution time. Therefore, we cannot guarantee that the price requested will be the same as the price when the order is executed. The price you receive may or may not be in your favour. To limit losses, you are required to choose ‘stop loss’ limits. These set limits automatically close your position when it reaches a your chosen price limit. It is highly recommended to maintain the Margin Level at 500% and always set ‘Stop Loss’ orders to hedge possible losses. There are however circumstances in which ‘stop loss’ limit is not fully effective – when there are rapid price movements, or market closure. In addition, there are risks associated with use of online deal execution and trading systems including, but not limited to, software and hardware failure and internet disconnection. IGOFX will not be responsible for any loss due to those risks.
IGOFX offers Fund Investment. In making a decision to copy a specific trader or traders and/or follow a particular strategy, you must consider your entire financial situation including financial commitments and you understand that using Fund Investment Feature is highly speculative and you could sustain significant losses exceeding the amount used to copy a trader or traders. The risks associated, include but are not limited to, automated trading execution whereby the opening and closing of trades will happen in your account without your manual intervention. You can read more about the Fund Management risks here.
While trading on our website and/or applications, system errors might occur. You should be aware of the risks that may result from any system failure which could mean that your order may be delayed or fail. You must also be aware of the risk of information from unencrypted email can be accessed by unauthorised parties.
Fees and Costs
Our fees and charges are set out on our website www.igofx.com. Please be aware of all the costs and charges that apply, because such costs and charges will affect your profitability.
Any opinions, news, research, analyses, prices, or other information contained on this website are provided solely as general market commentary, and do not constitute investment advice. IGOFX shall not be responsible for any loss resulting from any investment based on any recommendation, forecast or other information provided in our website.
Past performance is not an indication of future performance. The value of investments can go down as well as up and the market is volatile.
Your account with IGOFX will be held in USD which may be different from the currency you used to deposit, accordingly you should be aware of currency fluctuations.