This notice provides you with information about the risks associated with investment
products, in which you may invest, through services provided to you by TopMarketTrades Group
entities.
Investment products offered by TopMarketTrades include stocks, Exchange-Traded Funds (ETFs)
and cryptocurrencies, in which you gain ownership of the underlying asset. In addition,
TopMarketTrades offers contracts for differences (CFDs) that offer exposure to currencies,
commodities and indices.
Any transactions relating to stocks, ETFs or cryptocurrencies in which TopMarketTrades
offers you leverage (which is not currently available for cryptocurrencies) or allows you to
enter into short transactions, and/or some copy trading transactions (including
CopyPortfolios), shall be considered CFD transactions.
TopMarketTrades also offers investors the opportunity to buy the underlying
cryptocurrencies, stock or ETFs (i.e., BUY transactions for said assets using leverage 1)
hold such assets and subsequently sell such assets. All transactions relating to
cryptocurrencies are subject to the Cryptocurrencies Trading Addendum (“Cryptocurrencies
Trading Addendum”).
Since Cryptocurrency markets are decentralised and non-regulated, our Cryptocurrencies
Trading Services as such term is defined in the Cryptocurrencies Trading Addendum, are
unregulated services which are not governed by any specific European regulatory framework
(including MIFID). Therefore, when TopMarketTrades (Europe) Ltd. customers use our
Cryptocurrencies Trading Service, they will not benefit from the protections available to
clients receiving regulated investment services such as access to the Investor Compensation
Fund for Customers of Cypriot Investment Firms and the UK Financial Ombudsman Service for
dispute resolution. TopMarketTrades (Europe) Ltd. customers will continue to benefit from
the rules relating to best execution and client money and safekeeping of client assets.
TopMarketTrades (UK) Ltd. customers using the Cryptocurrencies Trading Service only will not
benefit from the protections available to clients receiving regulated investment services
such as access to the Financial Services Compensation Scheme (FSCS) and the Financial
Ombudsman Service for dispute resolution. We will endeavour to enable you to benefit from
rules relating to best execution and safekeeping of client assets.
All of these products carry a high degree of risk and are not suitable for many investors.
This notice provides you with information about the risks associated with these products,
but it cannot explain all of the risks nor how such risks relate to your personal
circumstances. If you are in doubt, you should seek professional advice. It is important
that you fully understand the risks involved before deciding to trade with TopMarketTrades,
that you have adequate financial resources to bear such risks and that you monitor your
positions carefully. Trading involves risk to your capital. You should not invest money that
you cannot afford to lose, however, you cannot lose more than the equity in your account.
NOTWITHSTANDING ANYTHING TO THE CONTRARY IN THE TERMS AND CONDITIONS AND/OR THIS GENERAL
RISK DISCLOSURE, FRENCH RESIDENTS SHALL BE ELIGIBLE TO INTRINSIC PROTECTION. ACCORDINGLY AND
INDEPENDENTLY OF MARKET VOLATILITY, THEIR MAXIMUM LOSS WITH RESPECT TO EACH TRANSACTION
SHALL BE THE TOTAL AMOUNT INVESTED IN SUCH TRANSACTION, AS UPDATED BY SUCH USER FROM TIME TO
TIME.
CFDS
CFD stands for “Contract For Difference,” meaning you are not buying the underlying asset,
but, rather, purchasing a contract to settle the difference in the initial and ending price
of the asset. When trading CFDs, you generally trade on margin, which means you only have to
deposit a small percentage of the overall value of your position. This is known as
“Leverage”, and even small market movements may have great impact, negative or positive, on
your trading account.
If the market moves against you, you may sustain a total loss greater than the funds
invested in a specific position. You are responsible for all losses in your account up to
the equity in your account.
Before deciding to trade on margin, you should carefully consider your investment
objectives, level of experience, and risk appetite. Our CFDs are not listed on any exchange.
CFDs involve greater risk than investing in on-exchange products, as market liquidity cannot
be guaranteed and it may be more difficult to liquidate an existing position. The prices and
other conditions are set by us in accordance with our obligation to provide best execution
as set out in our order execution policy, to act reasonably and in accordance with the
applicable Terms and Conditions. The characteristics of our CFDs can vary substantially from
the actual underlying market or instrument. Full details of all of our CFDs are set out on
our website. In respect of corporate events, with respect to the underlying assets, we do
not aim to make a profit from our clients from the outcome of corporate events such as
rights issues, takeovers, mergers, share distributions or consolidations and open offers. We
aim to reflect the treatment we receive, or, would receive if we were hedging our exposure
to you in the underlying market. Ultimately, however, you are not dealing in the underlying
market and, therefore, in relation to our CFDs, the treatment you receive may be less
advantageous than if you owned the underlying instrument.
CFDs are complex instruments and come with a high risk of losing money rapidly due to
leverage. 67% of retail investor accounts lose money when trading CFDs with this provider.
You should consider whether you understand how CFDs work, and whether you can afford to take
the high risk of losing your money.
CFDs are not suited to the long-term investor. If you hold a CFD open over a long period of
time, the associated costs increase (such as overnight fees), and it may be more beneficial
for you to buy the underlying asset instead. Sudden market movements, known as “gapping” may
occur, causing a dramatic shift in the price of an underlying asset. Gapping may occur when
the underlying market is closed, meaning the price on the underlying market may open at a
significantly different level, and at a less advantageous price for you.
At all times during which you have open positions, you must ensure that your account meets
our margin requirements, which may change from time to time. Therefore, if our price moves
against you, or if our margin requirements have changed, you may need to provide us with
significant additional funds to meet your margin requirement at short notice, to maintain
your open positions. If you do not do this, we will be entitled to close one or more or all
of your positions and you alone will be responsible for any losses incurred as a result.
Appropriateness
Before we open an account for you, we are required to make an assessment of whether the
product(s) and/or services you have chosen are appropriate for you, and to warn you if, on
the basis of the information you provide us, any product or service is not appropriate. If
you decide to continue and open an account with us, you are confirming that you are aware of
and understand the risks.
Position Monitoring
You should further ensure that you are able to monitor positions on your account at all
times, as you are solely responsible for this. We are not responsible for monitoring
positions on your account.
Copy Trading
TopMarketTrades offers Social Trading Features. In making a decision to copy a specific
trader or traders and/or follow a particular strategy, you must consider your entire
financial situation, including financial commitments. You must understand that using Social
Trading Features is highly speculative and that you could sustain significant losses
exceeding the amount used to copy a trader or traders. The risks associated with Social
Trading Features include, but are not limited to, automated trading execution whereby the
opening and closing of trades will happen in your account without your manual intervention.
Trading risks
Since Cryptocurrency markets are decentralised and non-regulated, our Cryptocurrencies
Trading Services are unregulated services which are not governed by any specific European
regulatory framework (including MIFID). This means that there is no central bank that can
take corrective measures to protect the value of Cryptocurrencies in a crisis or issue more
currency. Therefore, when TopMarketTrades (Europe) Ltd. customers use our Cryptocurrencies
Trading Services, they will not benefit from the protections available to clients receiving
regulated investment services such as access to the Investor Compensation Fund for Customers
of Cypriot Investment Firms and the Financial Ombudsman Service for dispute resolution.
TopMarketTrades (Europe) Ltd. customers will continue to benefit from the rules relating to
best execution and client money and safekeeping of client assets.
TopMarketTrades (UK) Ltd. customers using Cryptocurrencies Services will not benefit from
the protections available to clients receiving regulated investment services such as access
to the Financial Services Compensation Scheme (FSCS) and the Financial Ombudsman Service for
dispute resolution. We will endeavour to enable you to benefit from rules relating to best
execution and safekeeping of client assets.
CRYPTOCURRENCY MARKETS ARE DETERMINED BY DEMAND AND SUPPLY ONLY. The Cryptocurrency market
is a dynamic arena and its respective prices are often highly unpredictable and volatile.
The Cryptocurrency prices are usually not transparent, highly speculative and susceptible to
market manipulation. In the worst-case scenario, the product could be rendered worthless.
It is important to make a distinction between indicative prices which are displayed on
charts and dealable prices which are displayed on our trading platform. Indicative quotes
only give an indication of where the market is. Because Cryptocurrency markets are
decentralised, meaning they lack a single central exchange where all transactions are
conducted, each market maker may quote slightly different prices. Therefore, any prices
displayed on any chart made available by us or by a third party will only reflect
“indicative” prices and not necessarily actual “dealing” prices where trades can be
executed.
Cryptocurrency trading is prone to being misused for illegal activities due to the
anonymity of transactions and investors would be adversely affected if law enforcement
agencies were to investigate any alleged illicit activities.
ACCORDINGLY, CRYPTOCURRENCIES SHOULD BE SEEN AS AN EXTREMELY HIGH-RISK ASSET AND YOU SHOULD
NEVER INVEST FUNDS THAT YOU CANNOT AFFORD TO LOSE.
Given the foregoing, Cryptocurrencies are not appropriate for all investors. You should not
deal in these products unless you have the necessary knowledge and expertise, understand
these products’ characteristics and your exposure to risk. You should also be satisfied that
the product is suitable for you in light of your circumstances and financial position. In
addition, use of our Services can never be considered a safe investment, rather, only an
investment with a high risk of loss inherently associated with them.
Furthermore, our own spread is added to online quotes which makes a trade on our websites
even more volatile.
The risk of loss in trading Cryptocurrencies can be substantial. You should, therefore,
carefully consider whether such trading is suitable for you in light of your circumstances
and financial resources. You should be aware that you may sustain a total loss of the funds
in your account. If the market moves against your position, we may ask you to provide a
substantial amount of additional margin funds on short notice, in order to maintain your
position. If you do not provide the required funds within the time frame required by us,
your position may be liquidated at a loss, and you will be liable for any resulting deficit
in your account.
TopMarketTrades currently allows trading in cryptocurrencies over the weekend and it
reserves the right not to do so. Should TopMarketTrades so elect, trading in
cryptocurrencies shall be allowed only from Monday through Friday. Given that the
Cryptocurrency exchanges may operate over weekends, there may be a significant difference
between Friday’s close and Sunday’s open. All such factors may result in you either not
completing an order on a specific trading day or completing an order on a substantially less
favourable price.
Under certain market conditions, you may find it difficult or impossible to liquidate a
position. This can occur, for example, when the market reaches a daily price fluctuation
limit (“limit move”), if there is insufficient liquidity in the market. Certain crypto
assets may carry additional or specific risks.
Newly issued cryptocurrencies might carry additional risks you need to consider. Limited
liquidity or difficulties to trade the asset after you’ve bought it. This means prices could
be volatile, going up and down quickly, and liquidity may be limited, all depending on
supply and demand. TopMarketTrades cannot control these external factors.
Blockchain Risks
Since blockchain is an independent public peer-to peer network and is not controlled in any
way or manner by TopMarketTrades, TopMarketTrades shall not be responsible for any failure
and/or mistake and/or error and/or breach which shall occur in blockchain or in any other
networks in which the Cryptocurrencies are being issued and/or traded. You will be bound and
subject to any change and/or amendments in the blockchain system and subject to any
applicable law which may apply to the blockchain. We make no representation or warranty of
any kind, express or implied, statutory or otherwise, regarding the blockchain functionality
nor for any breach of security in the blockchain.
Operation of Cryptocurrency Protocols
TopMarketTrades does not own or control the underlying software protocols which govern the
operation of Cryptocurrencies available for trading on our platform. In general, the
underlying protocols are open source and anyone can use, copy, modify, and distribute them.
TopMarketTrades is not responsible for the operation of the underlying protocols and
TopMarketTrades makes no guarantee of their functionality, security, or availability. The
underlying protocols are subject to sudden changes in operating rules (“Forks”), and such
Forks may materially affect the value, function, and/or even the name of the Cryptocurrency
TopMarketTrades holds for your benefit. In the event of a Fork, TopMarketTrades may
temporarily suspend TopMarketTrades operations (with or without advance notice) and
TopMarketTrades may (a) configure or reconfigure its systems or (b) decide not to support
(or cease supporting) the Forked protocol entirely. TopMarketTrades may, but is not
obligated to do so, adjust your account in respect of a Fork, depending on the circumstances
of each event attributable to any specific Cryptocurrency which you hold.
Third-party Risks.
We may elect to execute any order and/or hold any fiat money and cryptocurrencies via a
Third Party. Such Third Parties are not banks that hold their fiat money/virtual currency as
a deposit. If any such Third Party loses any money, fails or goes out of business, there is
no specific legal protection that covers you for losses arising from any funds you may have
held with such a Third Party, even when such party is registered with a national authority.
Depending on the structure and security of the TopMarketTrades Money crypto wallet, some
individuals may be vulnerable to hacks, resulting in the theft of virtual currency or loss
of customer assets. TopMarketTrades will not be responsible in the event of losses caused by
those Third Parties.
Delisting and/or unsupported Cryptocurrencies: if at any time any of the Cryptocurrencies
form the subject of your order are delisted and/or we no longer support the trading in such
Cryptocurrencies for any reason, then the applicable order will be immediately closed. If
TopMarketTrades is notified that a Cryptocurrency you hold in your account is likely to be
delisted and/or removed and/or cancelled from any of the exchanges (some of them or all) and
TopMarketTrades believes that it shall not be able to trade in such Cryptocurrencies,
TopMarketTrades shall make an effort to sell the Cryptocurrencies on your behalf at such
time and price, and in such manner, as it determines.
Automated Trading & Internet Risks
While trading on our website and/or applications, system errors may occur. You should be
aware of the risks that may result from any system failure which could mean that your order
may be delayed or fail.
You acknowledge that there are risks associated with utilising an Internet-based trading
system including, but not limited to, the failure of hardware, software, and Internet
connections, the risk of malicious software introduction, the risk that third parties may
obtain unauthorized access to information and/or assets (including your Cryptocurrencies)
stored on your behalf, cyber attack, Cryptocurrency network failure (such as blockchain),
computer viruses, communication failures, disruptions, errors, distortions or delays you may
experience when trading via the Services, howsoever caused, spyware, scareware, Trojan
horses, worms or other malware that may affect your computer or other equipment, or any
phishing, spoofing or other attack. You should also be aware that SMS and email services are
vulnerable to spoofing and phishing attacks and should use care in reviewing messages
purporting to originate from TopMarketTrades.
Fees and Costs
Our fees and charges are set out on our website TopMarketTrades.com under the ‘Fees’
section. Please be aware of all costs and charges that apply to you, because such costs and
charges will affect your profitability.
Information
Any opinions, news, research, analyses, prices, or other information contained on this
website are provided as general market commentary, and do not constitute investment advice.
TopMarketTrades shall not be responsible for any loss arising from any investment based on
any recommendation, forecast or other information provided.
SPAC Risks
Investing in SPACs carries different risks to investing in other stocks on TopMarketTrades.
Unlike other listed companies, SPACs are shell companies when they become public and,
therefore, they do not have an underlying operating business. This means that you are
relying on the managers of the SPACs to realise your investment. There is no guarantee that
SPACs will be managed by individuals and firms that may not be competent or qualified to do
so. You should read the SPAC’s IPO prospectus and any reports or other key information
documents filed or published to understand the terms of your investments and the economic
interests and motivations of the SPAC you are investing in. Moreover, SPACs that do not
carry out an acquisition within a certain time period will be liquidated. As a result, there
is a risk that you may not recover some or all of the money directly invested by you into
the SPAC.
