Foreign exchange involves real financial risk. This page explains — in plain English — what those risks are and what they mean for you as a SummitFX client.
This Risk Disclosure is provided by SummitFX Ltd (Company No: 16200952) to help you understand the financial risks involved in using our foreign exchange and international payment services. It is not a complete description of every risk that may arise — markets are complex and no document can cover every scenario. But we want you to be clear about the key risks before you trade.
By using SummitFX, you confirm that you have read and understood the risks described here. If anything is unclear, please ask us before you book a trade.
Exchange rates move constantly in response to economic data, political events, central bank decisions, and market sentiment. The rate available to you at any given moment may be significantly better or worse than the rate available an hour, a day, or a week later.
SummitFX provides you with a live rate at the time you request a quote. If you choose not to book immediately and request a new quote later, the rate may have moved — in either direction. We cannot guarantee that any rate you have seen previously will still be available.
When you book a trade with SummitFX, the rate is locked in at the time of booking. You are protected from further rate movements on that trade. However, the rate you lock in may later appear more or less favourable than it would have been had you traded at a different time. This is an inherent feature of any currency exchange — not a failure of service.
A forward contract allows you to fix an exchange rate today for a transfer that will settle on a future date — typically up to 12 months ahead. This protects you against adverse rate movements between now and settlement. However, it also means you are legally committed to completing the trade at the agreed rate, regardless of how the market moves.
Important: If you book a forward at today's rate and the rate moves in your favour before settlement, you do not benefit from that improvement — you are still obligated to settle at the rate you agreed. The forward rate reflects this trade-off: certainty in exchange for the opportunity of a better rate.
Additionally, if market conditions change significantly before settlement, we or our Banking Partners may require you to provide a deposit (sometimes called a margin call) to secure your position. We will notify you if this applies to your trade.
A market order instructs SummitFX to automatically execute a trade when the market reaches a target rate you specify. A rate alert notifies you when your target rate has been reached so you can choose to book.
There are two key risks to be aware of:
When you confirm a trade with SummitFX — whether a spot exchange, a forward contract, or a market order — a binding agreement is formed. We immediately commit to the agreed rate with our Banking Partner on your behalf. The rate is no longer simply a quote; it is a contracted obligation.
If you subsequently request to cancel or reverse a booked trade, SummitFX will make every effort to accommodate you. However, you are liable for any financial loss that arises as a result of the cancellation, where that loss is caused by market movement between the time of your original booking and the time of cancellation.
This is because in order to cancel your trade, SummitFX must unwind the position with our Banking Partner at the prevailing market rate — which may be worse than the rate at which you originally booked. That difference is your cancellation loss.
In this example, the market moved 200 pips against the original trade between booking and cancellation. The client owes SummitFX the difference — €2,000 — because SummitFX had already committed to the original rate on the client's behalf.
Equally, if the market moves in your favour between booking and cancellation — for example the rate improves from 1.1800 to 1.2000 — the resulting gain cannot be returned to you. This is not a commercial decision by SummitFX; it is a regulatory requirement. Returning a gain from an unwound position to a client would constitute a profit from a speculative currency transaction, which is not permitted under the payment services framework within which we and our Banking Partners operate. A booked trade is a firm commitment in both directions, and any gain on cancellation is absorbed as part of the cost of unwinding the position.
If you are unsure whether you will need to cancel a trade, please speak to your dealer before booking. Forward contracts with flexible settlement dates may offer a suitable alternative.
Cancellation losses must be settled promptly. SummitFX reserves the right to deduct any outstanding cancellation loss from funds you hold with us, or to invoice you directly if insufficient funds are held.
Once a trade is booked and funds received, SummitFX and our Banking Partners will process your payment promptly. However, international transfers are subject to factors outside our direct control, including:
If a payment is significantly delayed or you believe it may be lost in transit, please contact our support team as soon as possible. We will investigate and work with our Banking Partners to locate and recover it.
SummitFX Ltd is not itself an authorised payment institution. All regulated payment services — including the safeguarding of your funds — are provided by our Banking Partners, each of which is independently authorised and regulated. When you send funds to SummitFX for a trade, those funds are handled by the relevant Banking Partner in accordance with their own regulatory obligations.
FSCS protection does not apply. The Financial Services Compensation Scheme (FSCS) protects customers of FCA-regulated banks and investment firms in the event of firm failure. Because SummitFX's payment services are delivered through our Banking Partners (rather than by SummitFX directly as an FCA-authorised firm), FSCS protection does not automatically apply to funds you hold with us. You should check the specific safeguarding arrangements of the relevant Banking Partner, details of which are available on our Partners page.
We take the security of client funds extremely seriously, and each of our Banking Partners is required to hold client funds separately from their own assets in accordance with UK payment services regulations.
SummitFX's trading platform operates primarily via WhatsApp. As with any technology-dependent service, there is a risk of temporary interruption due to:
If you are unable to reach us via WhatsApp during market hours and have a time-sensitive trade to book or cancel, you should contact us immediately by telephone on +44 (0) 20 3878 4760 or by email at support@summitfx.com. Always ensure you have our contact details saved somewhere other than WhatsApp alone.
SummitFX is not liable for losses arising from technology outages where those outages are beyond our reasonable control, provided we have made alternative contact methods available to you.
The regulatory environment for international payments can change. Governments, central banks, and regulators may introduce restrictions on certain currency corridors, impose new reporting requirements, or tighten sanctions regimes with little advance notice.
SummitFX and our Banking Partners are required to comply with all applicable UK and international sanctions. If a payment you instruct is subject to sanctions restrictions, we are legally obligated to delay, block, or report it — and we cannot be held liable for losses arising from our compliance with these obligations.
You are responsible for ensuring that your payments are not in breach of sanctions laws applicable to you, your counterparties, or the jurisdictions involved in your transfer.
SummitFX provides execution-only foreign exchange and international payment services. Nothing communicated by SummitFX — whether on this website, via WhatsApp, by phone, by email, or in any other format — constitutes financial advice, investment advice, or a personal recommendation to buy or sell any currency.
Our dealers may share their view of current market conditions, and we may provide rate alerts and market commentary. This is provided for information only. You should not make financial decisions based on SummitFX's market views without taking independent financial advice appropriate to your circumstances.
If you are uncertain whether a forward contract, market order, or timing strategy is right for your situation, we strongly encourage you to seek advice from an independent financial adviser before proceeding.
Historical exchange rates — including rates you have received on previous trades with SummitFX — are not an indication of rates you will be able to achieve on future trades. Currency markets are influenced by a large number of unpredictable factors, and no one can reliably forecast where rates will be at any given point in the future.
Any rate projections, forecasts, or estimates provided by SummitFX or our dealers are opinions, not guarantees. You should plan your currency requirements accordingly and not assume that a favourable rate seen in the past will be available when you need it.
Speak to your dealer before booking if you're unsure about any of these risks. We'd rather you trade with full confidence than regret something later.