What the CFD risk warning means, and why the percentage differs between brokers

On many broker sites you will find a small line: "74% of retail investor accounts lose money when trading CFDs with this provider." That line is not legal decoration. It is a regulatory obligation imposed by bodies such as the UK FCA and ESMA, and the number belongs to that specific broker and is updated periodically.

What the number actually measures The percentage measures how many of the broker's retail accounts ended a defined measurement period at a loss. It does not measure the average size of the loss, it does not measure execution quality, and it does not imply misconduct. Published figures usually sit between roughly 50% and 90% — which is itself the single most useful fact a beginner can read before depositing.

Why it differs between brokers and between entities Client mix explains much of the spread: a broker whose clients mostly trade short-term with high leverage will publish a higher figure. The number is also calculated per legal entity, so the same brand can show one percentage on its EU site and another on its UK site. That is why BrokerMatch stores the official source URL next to every percentage and never displays a figure we have not found disclosed by the broker.

What if a broker publishes no figure? Entities registered outside the EU and UK are often not required to publish it. A missing percentage does not mean lower risk — it means less information. In that case we show the general warning: CFD trading carries a high risk of losing your capital.

How to use the number Do not compare two brokers on this figure alone; read it alongside cost, leverage and account type. Treat it as a reminder that the majority lose, and that your position size and leverage are the levers that move you toward or away from that majority. BrokerMatch gives no investment advice: we publish disclosed figures and their sources.