OFF-EXCHANGE FOREIGN CURRENCY TRANSACTIONS INVOLVE THE LEVERAGED TRADING OF CONTRACTS DENOMINATED IN FOREIGN CURRENCY CONDUCTED
WITH A FUTURES COMMISSION MERCHANT OR A RETAIL FOREIGN EXCHANGE DEALER AS YOUR COUNTERPARTY. BECAUSE OF THE LEVERAGE AND THE
OTHER RISKS DISCLOSED HERE, YOU CAN RAPIDLY LOSE ALL OF THE FUNDS YOU DEPOSIT FOR SUCH TRADING AND YOU MAY LOSE MORE THAN YOU DEPOSIT.
YOU SHOULD BE AWARE OF AND CAREFULLY CONSIDER THE FOLLOWING POINTS BEFORE DETERMINING WHETHER SUCH TRADING IS APPROPRIATE
FOR YOU.
(1) 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.
(2) 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.
(3) 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.
(4) 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.
(5) 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.
This web site does not suggest that you should or should not participate in the forex market.
You should make that decision after consulting with your financial advisor and considering your own financial situation
and objectives. In that regard, you may find this web site helpful.
There are risks associated with utilizing an Internet-based deal execution trading system including, but not limited to, the failure of
hardware, software, and Internet connection including distortions or delays when trading via the Internet and problems related
to the configuration of the trader's equipment or the reliability of their Internet connection.
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