This is the Risk Disclosure and Warning Notice of CXM Prime Ltd, a company duly formed under the laws of England and Wales, with company number 13407617. The entity is regulated by the Financial Conduct Authority as a MIFIDPRU Investment firm under registration number 966753 and has its office at Office 518, 15 St. Helen’s Place, London, England, EC3A 6DQ.  

 

It is imperative that a user of our service reads and understands the below Risk Disclosure and Warning Notice. This document should be read in conjunction with the legal documentation/information provided to you in pursuit of our services. This includes, but is not limited to the Terms of Business, Order Execution Policy, Conflict of Interest Policy and Leverage Policy. 

 

It is a priority of CXM Prime Ltd to treat its customers fairly and this notice serves to contribute to this priority. This is applicable to our eligible counterparty and per se professional clients - CXM Prime does not cater to any other client categories. 

 

This document is not, nor should it be construed to be, investment advice or a recommendation for any service or investment in any financial instruments. 

 

The information in this Disclosure and Notice is subject to change without notice and continued use of our service is construed to be acceptance of the Disclosure and Warning Notice. We are not responsible for the validity of information in third party websites that may have links to or from our website. 

 

Foreign exchange and CFD trading carries a high level of risk that may not be suitable for all investors. Leverage creates additional risk and loss exposure. Before you decide to trade foreign exchange, carefully consider your investment objectives, experience level, and risk tolerance. 

 

Past performance is not indicative of future results. Please remember You could lose some or all of your initial investment; do not invest money that you cannot afford to lose. Different types of investments/assets involve varied degrees of risk and there is no assurance that the future performance of any specific investment, strategy or product will be profitable. There is no assurance that any performance or similar activity of an investment will be suitable for you/your portfolio. 

 

This Risk Disclosure and Warning Notice is for your general information. It does not encompass all the associated risks of trading and/or doing business with CXM Prime Ltd. 

 

Educate yourself on the risks associated with foreign exchange trading, and seek advice from an independent financial, tax or legal advisor if you have any questions.

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Services Offered

CXM Prime Ltd’s services are provided on an execution only basis. We do not provide investment advice in relation to any services. CXM Prime Ltd acts as the principal in all dealings. CXM Prime will offer Non-Cryptoasset CFDs. That is, CFDs on FX, precious metals, commodities, and indices to per se professional clients and eligible counterparties on a matched principal basis. Our regulatory permissions include providing services for commodity futures, Future, rights to or interests in investments and rolling spot forex contracts. 

 

Client funds

CXM Prime Ltd does not hold client funds. All clients will enter into a title transfer collateral arrangement wherein ownership of any funds a client has in their account will transfer to us. Since the ownership of the funds is transferred to CXM Prime, the funds will not be segregated or treated as client money. Clients will not have any proprietary claim over the funds and will rank as a general creditor in the unlikely event that CXM Prime goes bankrupt.

 

Internet Trading/Online Trading Risk

When you use an internet-based deal-execution trading system, there are associated risks.  This includes, but is not limited to, the failure of hardware, software, and internet signal. Since CXM Prime does not control internet connectivity, its reception or outing via the internet, configuration of your equipment, quality of client hardware or reliability of its connection, CXM Prime is not responsible for communication (signal) issues, communication failures, delays or distortions when trading. CXM Prime aims to minimise the possibility of system failure by implementing contingency plans.

 

Failure to monitor positions

Clients must closely monitor all positions. It is your responsibility to monitor your positions and during the period that you have any open positions. Clients must ensure they have the ability to access their account.

 

Automatic closure of Margin Trades and Positions

CXM Prime automatically closes open positions once equity gets to a predetermined level of required margin. This is to prevent you incurring further losses and we may close all CFD margin trades and/or position on your account for this - not just positions that are making a loss. Clients are expected to monitor their positions closely. 

 

In the unlikely scenario where markets do not allow for the closing of open trades immediately, the value of your open trades could fall further. There are instances where automatic closure may be ineffective such as when there are swift price movements or market closure. 

 

CXM Prime aims to notify clients of margin calls within the trading terminal and in some cases a notification may be sent, however, clients should not rely on this notification and should monitor their trades/accounts. 

 

Education and Research

Any information found on this website such as articles, news updates, and research are presented as general market annotation, and does not serve as an investment advice. CXM Prime Ltd does not take responsibility for any loss, as well as any potential loss of profit, which may derive directly or indirectly from reliance on such information.

 

No Guarantee of Profit 

There are no guarantees of profit nor any guarantees of avoiding losses when trading CFDs. Neither CXM Prime Ltd nor its employees, representatives, affiliates or similar can provide any such guarantees. You agree that risks are inherent to trading CFDs and you must be financially able to bear such associated risks and withstand any losses incurred. 

 

Quoting Error Risk 

Online pricing systems may encounter errors. In the event of a price quoting error (including responses to relevant and/or associated client requests), CXM Prime is not responsible for any resulting errors in account balances as a result. Further, CXM Prime reserves the right to make relevant and necessary changes to the applicable account. We may rely on various third party sources for pricing made available to clients and in the event of a misquoted price from a source, all trades executed on that misquoted price may be subject to revocation as the misquoted price may not accurately reflect genuine market activity. 

 

Additional Services and Team Access

Where CXM Prime Ltd may have consented to providing an additional service which may lead to more access to our team members, There may be circumstances where you may be unable to access a team member due to high demand, or other circumstances. As such you may be restricted or prevented from taking immediate/quick action and this could impact the risk associated with certain products. 

 

Differed Pricing

CXM Prime will provide prices to be used for trading, evaluating client positions and determining margin requirements. The prices provided may differ from prices provided elsewhere by other providers. Financial market and/or technical fluctuations may lead to a difference in the process seen when an order is placed, and when it is executed/settled which may put you at a disadvantage. 

 

CXM Prime works to continuously generate prices and show the most applicable prices. However, technical variations may lead to a different price at the time an order is placed and when we receive and/or execute this. In the event there is such a difference, we typically will execute a trade at the price applicable when it is executed on our platform.  

 

Financing Trades with Credit

You should not finance any trades in the services offered through credit. You must not rely on being able to repay borrowed funds with any profits from any trades from the services offered. 

 

Leveraged Trading

CXM Prime offers leveraged trading. There is a risk, with some products, of losing more than the amount you initially deposited with us. High leverage can significantly increase the potential return, but it can also significantly increase potential losses. 

 

The risk of CFDs is magnified by the leverage of the CFD. The impact of leverage becomes higher when the value of the underlying asset of the CFD is volatile. A small price movement can have magnified effects and could either provide high returns or lead to significant losses. We have features and systems in place to help limit the risk of loss you may experience but this is not guaranteed. 

 

In the event of a loss, you may be required to pay additional funds to maintain your open position. Failure to comply with a request for additional funds may lead to your position being liquidated. It is important that you monitor your trades and accounts closely. 

 

Unmatched Trades

CXM Prime makes best efforts to ensure that trades are matched. CXM Prime will not confirm any trade to the client before receiving an execution confirmation from the liquidity provider. In the unlikely event of some trades being unacknowledged after being confirmed by the liquidity provider since positions will be continuously monitored, where unmatched positions arise they will be mitigated as soon as possible.

 

Third party protections may not be extended to you 

CXM Prime works with third parties to facilitate the services it provides to you. Any guarantees or protections offered to CXM Prime as a result of its contracts with third parties such as outsourced entities, vendors or similar, or that are available to us by way of law, may not cover or protect you if you face any loss or damage as a result of such third party’s failure to fulfil the obligations it may owe to us. 

 

Market Risk 

The value of an investment portfolio may decrease due to the alterations in the value of market factors like stock prices, interest rates, commodity prices and exchange rates. In the event of any negative price fluctuation, you may run the risk of losing all your invested capital. 

 

Execution

CXM Prime executes trades through straight through processing (STP). With this model, we are able to offer competitive pricing. In our pursuit of filling orders at the requested rate, we work to provide the best execution available. Due to an increase in volume or volatility at times, some orders may experience slippage upon execution. CXM Prime Ltd will undertake continuous automated monitoring of the prices at which trades are executed to ensure that any instances of slippage are treated asymmetrically.

 

Different Product Risks

Each of the products we offer may have specific risks attached which may vary from other offerings. Clients should ensure they understand the specific risks of a particular product before trading in it. 

 

Gapping Risk 

Gapping is a form of price volatility. This is where there is a sudden shift in price from one level to another caused by unexpected economic events or upon market opening. It may not be possible for clients to place orders between the two price levels, or for us to execute a pending order for a trade that may be between two price levels. Where there is this sort of price volatility, orders may be executed at the next available price and there may be significant losses if the price level is less favourable on an affected trade. 

 

It is important that clients who hold open positions over the weekend acknowledge the potential for significant news reporting or economic events that can affect the value of the trader's underlying position. Clients concerned of the potential risk of price gapping over the weekend and do not find it appropriate for their trading style can close out orders and positions ahead of the weekend. 

 

Trading platform risk

Once an order is entered on CXM Prime’s system, the client will not be able to modify or cancel the order. Clients should use the demo account to familiarise themselves with CXM Prime’s operations before executing an actual trade. By using the trading platform, even through a demo account, clients are deemed to have accepted the risks related to the immediate execution feature.

 

No advisory or fiduciary relationship 

CXM Prime does not act as your adviser or fiduciary. Any basic/generic market information that may be provided by CXM Prime is not and should not be construed to be investment advice or any form of recommendation - neither is it intended to be so. Any such information is not and should not be considered as advice to buy or sell, or solicitation of advice to buy or sell any CFD or other assets. 

 

All clients are responsible for managing their own tax and legal affairs. This includes complying with applicable laws and regulations and making appropriate disclosures. CXM Prime does not provide financial, regulatory, tax or legal advice. If you are in any doubt as to the tax treatment or liabilities related to the CFDs offered, you should seek independent advice.
 

Tax treatment 

The tax treatment or similar associated duty of trading activity may be circumstantial and subject to change in the future. 

 

Interest rate risk

The value of an investment may vary due to a change in the absolute level of interest rates, in the spread between two rates, in the shape of the yield curve, or in any other interest rate relationship.

 

Foreign exchange risk

The value, price and/or performance of an investment may be affected by variations in exchange rates with instruments traded in a currency other than the base currency.

 

Operational risk

Business operations may fail as a result of human error. This varies according to industry and is a key consideration in making investment decisions. Lower operational risk may be seen in industries with a reduced level of human involvement or interaction. 

 

Country risk

The returns of an investment could suffer due to instability or political changes in a country. Further, instability which could affect the returns of an investment may be linked to governmental changes, legislative bodies, foreign policy makers, or military control.

 

Legal and Regulatory Risk

This is an unpredictable risk. Changes in laws and/or regulations may increase operational costs, alter the competitive landscape, and/or reduce the attractiveness of an investment. As a result of these factors, the overall profit of an investment may be altered. The risk posed here is unpredictable and may vary depending on the market for the underlying CFD asset. Further, there may be a change in the laws and regulations that may pose restrictions on our offering or ability to execute the current business model. 

 

Risks Beyond CXM Prime’s Control

There are risks associated with your conduct or the conduct of third parties which may lead to negative consequences for you. The Client and not CXM Prime, is completely liable for the risks which include, but are not limited to: (i) your lack of knowledge of/failure to familiarise yourself with the trading terminal settings; (ii) technical faults in the software you use; (iii) disclosure of the registration or other confidential credentials to third parties at the opening of the real account; (iv) unauthorised access by a third party to your personal email account; (v) Client failing to monitor positions; (vi) failing to read information/notices sent from us to your email address in a timely manner; (vii) any other force-majeure circumstances on the part of the Client.