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ADVISORY TRADING BROKERS RISKS

Please find Risk information on Advisory Tradiung Brokers and Services below.

        

Risk Exposure on Advisory Services

It is important to remember that risks are present in any form of trading or investing. No matter which way you decide to invest, be it:

  • Stocks and Shares
  • ISAs
  • Forex
  • Futures
  • Options
  • CFDs
  • Spread Betting

...your risks are ever-present. This is because you are placing capital on a market, commodity investment value which can change at a moment's notice. Therefore, where you may have been in a “winning” position, you may lose all of your capital the next. In fact, in some cases you may even be liable to pay money on top of your capital to cover losses (this applies mainly to CFDs and Spread Betting trade).

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By using an Advisory Service, what is my risk?

You may be wondering why there are risks involved from an Advisory Trading Service. After all, an Advisory Service is merely a value-added (or additional) service provided by your trading platform or broker. As our FAQs document tells us, an Advisory Service provides useful information, analytical tools, charting software and research material. So where is the risk?

The risk lies in your understanding of your responsibility as a trader/investor. An Advisory Service cannot:

  • Guarantee that their service is entirely free of mistakes
  • Guarantee that you will make returns
  • Guarantee that by using them, you will be a better trader

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What Should I be aware of?

By using an Advisory Service, you must ensure that you are aware of your risks in relation to your investments or transactions. You must ensure that:

  • You know that your investment/trading decision is entirely your own decision
  • You understand the advice given to you by an Advisory Service

In other words, no matter what advice you receive, your final investment choice is yours and not the responsibility of the Service. Therefore, if you make a trade decision which makes a loss, you cannot blame the Advisory Service for this.

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Many Advisory Services strive to remind you that:

"Past performance is not necessarily a guide to future performance".

In other words, no matter how much expert advice, strategies, recommendations or tips based on past successes you receive there is no guarantee whatsoever that you will be able to use them to make successes in the future.

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Beware the "Comfort Zone"

By using an Advisory Service for trading/investing, you are at risk of becoming "comfortable" – in other words, you may feel that because you have chosen to receive one-to-one recommendations from an expert, you are safe from making a mistake on your trade. However, while an expert broker can provide useful tips and recommendations, they cannot guarantee that you make a trade choice which results in returns.

No matter how experienced the advice you receive, your risk exposure for losses remain the same.

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Important Note – please read:

Which Way To Pay is an independent online comparison website. Please be aware that while a part of the website content involves the comparison and review of a wide range of financial products, we do not in any way recommend or encourage website visitors to begin an investment transaction of any kind or to enter trade on any index, commodity, currency, stock or share. Please ensure that you fully understand a product before you begin any transaction or trade upon or around it. Please also ensure that you fully understand that while a financial advisory service can be a useful service, it does not guarantee any success on investing in financial markets.

Which Way To Pay, while using reasonable measures to ensure that data on the website is accurate, is not aware of your personal investment aims, objectives or needs. Site content is designed for information and interest only.

We encourage you to seek independent financial advice if you are in any way unsure as your personal suitability for any investment/trading activity.

The risks outlined here are just some of those involved in using an Advisory Service. While there are many positive aspects to using an expert advisory service for trade/investment, it is nevertheless vital that you realise what the risks are when dealing with and financial product, no matter how exciting and potentially rewarding it may be. It is entirely up to you whether you use advisory services sensibly or without due care, afterthought or a sense of personal responsibility.

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