Moneta Markets, a prominent broker offering Contracts for Difference (CFDs), recently emphasized the complexities and risks associated with these financial instruments. The broker took the unprecedented step of publishing an extraordinarily specific risk warning to its clients. It was further pointed out that CFDs are highly leveraged products and therefore involve a high risk of losing money quickly. One major risk, they pointed out, is the use of leverage that can magnify both returns and at-risk capital.
CFDs have become increasingly popular with traders wanting to speculatively trade across a wide range of financial markets, without having to physically own the underlying assets. That said, Moneta Markets carries a cautionary tale. Though the lure of profit is tempting, the danger of substantial financial loss is a very real threat. Investors should only trade CFDS with an understanding of how they work and their risks.
As Moneta Markets points out, most retail investors lose a ton of money trading CFDs. The broker’s warning underscores how fast the potential for loss can accelerate into real financial damage without proper oversight. Traders need to deeply understand their own risk appetite. They need to reconsider their overall strategy toward investing prior to getting started with CFD trading.
For anyone who wants to find out more about Moneta Markets and what it has to offer, we’ve gone into detail in our Moneta Markets review on FXStreet. Read on for our comprehensive broker review, including sections on Platform & Tools, 24/7 Customer Support, Proprietary Research & Advanced Education. Anyone who is interested can read the full review over at FXStreet.
Alongside delivering quality trading insights, Moneta Markets takes care to preserve a distinct visual illustration of its brand. A picture of their new marketplace offering can be seen at Moneta Markets Picture.