Risk Disclosure: Leveraged Forex and CFD Trading
Before you act on anything you read here, you should understand the risks that come with leveraged forex and CFD trading, because the losses can be severe and quick.
Begin with the sponsorOur Position
This site is an independent editorial resource that reviews Alpari for readers in South Africa. We are not the broker. We are not affiliated with the broker. We do not provide financial services, we do not open accounts, we do not accept deposits, and we do not give advice. Everything we publish is commentary and general information, and nothing on these pages should be read as a personal recommendation to trade, to deposit money, or to choose any particular product.
Because we take on the task of reviewing a broker, we also take on the duty to be clear about what leveraged trading involves. A review can describe how a broker operates, what its pricing looks like, and how its platforms behave, but it cannot turn a high-risk product into a suitable one for any given reader. That judgement belongs to you, ideally with the help of an independent adviser who knows your circumstances.
Read the rest of this page as a summary of the main risks, not as a complete list. Leveraged forex and CFD trading carries additional hazards that vary by product and by market conditions, and the broker's own legal documents remain the authoritative source on the terms you would accept.
Past Performance
Past results say very little about what will happen next. A strategy that produced gains last year, or a broker whose clients reportedly did well in a particular quarter, tells you nothing reliable about your own outcome. Markets change regime, volatility rises and falls, and the conditions that made one approach work can disappear without warning.
Historical price data and backtests are especially weak guides in leveraged products. They are usually built on assumptions about execution, spreads and financing that real trading does not reproduce. A result that looks attractive on paper can vanish once real costs and real fills are applied.
Treat any performance figure you encounter, whether from a broker, a commentator or a trading educator, as history and nothing more. It is not evidence of skill that will persist, and it is certainly not a forecast of your returns.
Margin and Closure
Leverage means you post a fraction of the position's value as margin. That margin is not a fee and it is not a cap on your loss. It is collateral, and if the position moves against you, the required margin rises while your available equity falls. When equity drops below the level the broker requires, you face a margin call.
A margin call is a warning, not a guarantee of time. Many brokers close positions automatically once equity falls to a set percentage of the margin requirement, and they may do so without further notice and at whatever price is available. That closure can happen at a loss larger than you expected, and it can happen while you are asleep or away from the screen.
Automatic closure is a risk control for the broker, not a protection for you. It does not ensure you keep any particular balance, and in fast markets the closing price can be well past the level that triggered it. You should assume that any position can be closed for you at a time you did not choose.
Protection and Jurisdiction
Investor protection schemes differ by jurisdiction and by the legal entity that holds your account. A brand name can operate through several entities in different countries, and the protections attached to your account depend on which entity contracts with you, not on the brand you recognise.
Some jurisdictions offer compensation schemes with defined limits. Others offer none, or offer cover that does not extend to retail forex and CFD losses. Segregation of client money, if it applies, is a separate matter from compensation, and neither one removes market risk.
Because this site is not the broker, we cannot tell you which entity would hold your account or what protection would apply. That information must come from the broker's own legal documentation and from the regulator in the relevant jurisdiction. If you cannot establish clearly which entity you would be dealing with and what protection follows, that uncertainty is itself a reason for caution.
Costs and Execution
Leveraged trading carries running costs that accumulate quietly. Spreads are the difference between the price at which you can buy and the price at which you can sell, and wider spreads eat into every round trip. Overnight financing is charged on positions held past the daily cut-off, and on leveraged positions it can build into a meaningful drag over weeks and months. Commissions, inactivity fees and currency conversion charges may add further amounts.
Execution risk matters as much as cost. Prices can gap between sessions, so a stop order may be filled well beyond the level you set. Slippage is common around news releases, when liquidity thins and volatility spikes, and the fills you receive in those moments can differ sharply from the quotes you saw. Leverage multiplies both directions: gains are amplified, but so are losses, and a modest adverse move in the underlying market can wipe out a large share of your account. Never commit money you cannot afford to lose entirely.
