CFDs are an increasingly popular financial instrument that allow you to bet on price movements without actually owning the underlying asset. With a CFD (contract for difference) you can take large positions in indices, shares, forex, or cryptocurrencies without putting down a lot of money. CFDs are the epitome of high-risk, high-reward investment vehicles. <\/p>\n\n\n\n
CFDs are risky enough that US brokers are not permitted to offer them. And many international brokers<\/a> that do offer them are required to disclose what percentage of their clients have lost money trading CFDs.<\/p>\n\n\n\n These disclosures don\u2019t paint the full picture, but they do offer some real-world results that show just how risky CFDs can be.<\/p>\n\n\n\n As you can see below, the stats are not encouraging. I\u2019ve compiled the data from 15 random CFD brokers that are required to disclose failure rates. With these particular brokers, between 67% and 84% of traders lost money. This data should be more than enough to give any traders pause before they begin to trade CFDs. <\/p>\n\n\n\n