Risk Disclaimer: Trading Foreign Currencies

Spot foreign exchange on margin is an off-exchange product. This program permits you to trade foreign currencies on a highly leveraged basis. For example, an investment of $1,000 would permit you to trade up to $100,000 of any particular currency. If you trade using the maximum available leverage, and if the exchange rate of a specific currency against other currency changes by 1% or more, then your entire investment is at risk of loss.

Exchange rates between foreign currencies can change rapidly due to a wide range of economic and political events.

Amounts deposited to your account(s) with MG Financial are not insured in the same respect and are not entitled to the same protections afforded to funds deposited with a bank because the FDIC only insures deposits in banks. Customers of MG Financial can lose their entire investment in an event of insolvency of MG Financial .

MG Financial will act as counterparty in all transactions for your account. This means that you are buying and selling currencies in transactions with MG Financial as principal. MG Financial does not charge any commissions* for its trading accounts.

MG Financial determines in its sole discretion whether or not to cover its net long or net short position in specific currencies in the cash market at each particular moment in time.

Any opinions expressed by representatives of MG Financial as to the future direction of prices of specific currencies are purely opinions, do not necessarily represent the opinion of MG Financial, and are not guaranteed in any way. In no event shall MG Financial have any liability for any losses incurred in connection with any decision made, action or inaction taken by any party in reliance upon the information provided on the site; or any delays, inaccuracies, errors in, or omissions of information.

MG Financial is a Futures Commission Merchant registered with the Commodity Futures Trading Commission and a member of the National Futures Association in the United States. It may be more difficult for non-US residents to take legal action against MG Financial than it would be for them to take action against a company that is incorporated, continued or otherwise organized under the laws of their country of residence.

The transactions you are entering into with MG Financial are not traded on an exchange. Therefore, under the U.S. Bankruptcy Code, your funds may not receive the same protections as funds used to margin or guarantee exchange-traded futures and options contracts, which receive a priority in bankruptcy. Since that same priority has not been given to funds used for off-exchange forex trading, if MG Financial becomes insolvent and you have a claim for amounts deposited or profits earned on transactions with MG Financial, your claim may not receive a priority. Without a priority, you are a general creditor and your claim will be paid, along with the claims of other general creditors, from any monies still available after priority claims are paid. Even customer funds that MG Financial keeps separate from its own operating funds may not be safe from the claims of other general and priority creditors.


All translations are for reference purposes only. For official documents please refer to English text. US laws govern MG.