(a) Marigold Global Markets Corporation (hereinafter referred to as “MGMC”) is a global investment
firm that is engaged in the trading of financial and commodity-based derivative instruments and
(b) MGMC is incorporated (Certificate of Incorporation No. 108896) in the Belize through the
Department of Registrar of International Business Companies. MGMC is authorized and regulated
by the Belize International Financial Services Commission (license number IFSC/60/208/TS/12) for
trading in financial and commodity-based derivative instruments and other securities.
(a) The Client acknowledges that he / she read, understood and accepted the Terms and Conditions of
Business ('the Terms and Conditions');and the Client Agreement as amended from time to time in
addition to any information contained within MGMC's website, including but not limited to the 'Legal
Information' and the 'Legal Documentation' available online at
(b) By accepting the Terms and Conditions, which form part of the Service Agreement, the Client
enters into a binding legal agreement with MGMC.
(c) The Client acknowledges that the MGMC's official language is the English language.
3. SCOPE OF THE TERMS AND CONDITIONS OF BUSINESS
(a) The Terms and Conditions govern all the actions that relate to the execution of the Client's orders.
(b) The Terms and Conditions are non-negotiable and override any other agreements, arrangements,
express or implied statements made by MGMC unless MGMC determines, in its sole discretion,
that the context requires otherwise. If the Terms and Conditions were to be amended, reasonable
notice shall be given by MGMC to the Client.
(c) The International Business Companies Act Chapter 270 of the Laws of Belize, Revised Edition 2000
which implements Section 14(3) of The International Business Companies Act, does not require the
Terms and Conditions to be Signed by either MGMC or the Client in order for both MGMC and the
Client to be legally bound by it.
4. COMMENCEMENT OF THE SERVICE AGREEMENT
The Service Agreement shall commence once the prospective client receives an e-mail that
contains the trading account number and certain documents; namely, the Terms and Conditions,
the Order Execution Policy, the Client Categorization Notice, the Investor Compensation Fund
Notice and the Conflicts of Interest Policy.
5. DEFINITION OF TERMS
(a) Unless indicated to the contrary, the defined terms included in the Client Agreement shall have a
specific meaning and may be used in the singular or plural as appropriate.
Authorized Representative Shall mean either the natural or legal person who is expressly
authorized by the client to act on his / her behalf; the above
mentioned relationship is documented through a Power of Attorney,
a copy of which is held by MGMC.
Balance Shall mean the funds in a trading account that are available for
Balance Currency Shall mean the currency that the trading account is denominated in;
it should be noted that all charges including spreads, commissions
and swaps, are calculated in that currency.
Base Currency Shall mean the first currency represented in a currency pair, for
example in the EUR/USD currency pair the base currency is the
Client Shall mean either the natural or legal person who received the e-mail
referred to in paragraph 4 of the Client Agreement.
Closed Position Shall mean the opposition of an open position.
Contract for Difference (CFD) Shall mean a CFD on spot foreign exchange ('FX'), or a CFD
on shares, or a CFD on spot metals, or a CFD on futures or any
other CFD related instrument that is available for trading through
the MGMC trading platform(s); a full list of the financial instruments
is available online at www.mgmc-belize.com.
Equity Shall mean the balance plus or minus any profit or loss that is
derived from any open positions.
Free Margin Shall mean funds that are available for opening a position. It is
calculated as: Free Margin = Equity - Margin
Margin Shall mean the required funds available in a trading account for the
purpose of maintaining an open position.
Margin Level Shall mean the Equity to Margin ratio calculated as:
Margin Level = Equity / Margin
Market Maker Shall mean the company, or the individual, that quotes both a buy
and a sell price in a financial instrument.
Open Position Shall mean any position that has not been closed. For example, an
open long position not covered by the opposite short position and
Over-the-Counter (OTC) Shall mean the execution venue for any financial instruments
whose trading is governed by the Service Agreement.
Prospective Client Shall mean either a natural or legal person who completed the
application form that can be found under the 'MGMC Trading
Account Registration' section, available online at www.mgmcbelize.com.
Trading Account Shall mean the account, which has a unique number, maintained by
a client for the purposes of trading financial instruments through the
MGMC trading platform(s).
Terms and Conditions Shall mean the „MGMC Terms and Conditions of Business' govern
the actions that relate to the execution of the client's orders;
available online at www.mgmc-belize.com.
Value Date Shall mean the delivery date of funds.
6. PROVISION OF SERVICES
(a) MGMC provides investment and ancillary services to the client, details of which are provided by
Belize International Financial Services Commission.
(b) MGMC offers, on an execution-only basis, a number of financial instruments to the client the
contract specifications of which are available online at
(c) The trading conditions and execution rules of the financial instruments offered by MGMC can be found
online at www.mgmc-belize.com, at any given time. Upon notice to the client MGMC reserves the right
to amend, from time to time, both the trading conditions and execution rules. Even if MGMC amends
any part of the trading conditions and / or execution rules, the client continues to be bound by the
Service Agreement, including but not limited to any amendments that have been implemented.
(d) Unless specifically agreed, MGMC is under no obligation to monitor or advise the client on trading,
therefore, MGMC may execute an instruction received from the client even if such transaction is not
suitable for the client.
(e) Under no circumstances, MGMC shall provide investment advice or recommendation to the client or
state an opinion in relation to a transaction. The client understands that if necessary, independent
advice should be sought in relation to trading financial instruments, including but not limited to trading
specific financial instruments, investment strategies pursued, charges and tax implications.
(f) MGMC, from time to time and as often as it deems appropriate, may issue material ('the Material'),
which contains information including but not limited to the conditions of the financial market, posted
through its website and other media. It should be noted the Material is considered to be marketing
communication only and does not contain, and should not be construed as containing, investment
advice or an investment recommendation or, an offer of or solicitation for any transactions in financial
instruments. MGMC makes no representation and assumes no liability as to the accuracy or
completeness of the information provided, nor any loss arising from any investment based on a
recommendation, forecast or other information supplied by any employee of MGMC, a third party or
otherwise. The Material is not prepared in accordance with legal requirements promoting the
independence of investment research and it is not subject to any prohibition on dealing ahead of the
dissemination of investment research. All expressions of opinion included in the Material are subject to
change without notice. Any opinions made may be personal to the author and may not reflect the
opinions of MGMC.
(g) The client understands that no physical delivery of a CFDs underlying instrument (or reference
instrument) that he / she traded through his / her trading account shall occur.
(h) The client accepts that MGMC is the only execution venue, which is a non-regulated market.
(i) The client may trade through his / her trading account from 00.00.01 (GMT +2) on a Monday until
00.00.00 (GMT +2) on a Friday. It should be noted that trading of certain financial instruments occurs
during specific time periods; the client is responsible for looking at the contract specifications of such
instruments for further details, prior to trading. The client shall be notified of any market holidays
through the internal e-mailing system.
(j) MGMC in entitled to refuse the provision of any investment or ancillary service to the client, at any
time, without being obliged to inform the client of the reasons to do so in order to protect the legitimate
interests of both the client and MGMC.
7. CLIENT CLASSIFICATION
(a) The client shall be treated as a Retail Client, a Professional Client or an Eligible Counterparty
depending on the information that he / she provided when completing the application form; this
information shall determine the client‟s classification by MGMC. Therefore, the client is responsible
for notifying MGMC if his / her personal circumstances change.
(b) If a client desires to be re-classified then he / she needs to send a written request; MGCM shall
consider such request at its discretion.
(c) The client classification may be reviewed, at any time, by MGMC at the latter's discretion. The
client shall be notified in writing by MGMC in relation to the above.
(d) The client is bound by the Client Categorization Notice. Further details are available online at
(a) MGMC shall act, at all times, act as principal.
(b) Even if the client identifies a legal or natural person (the Third Party) who is responsible for acting
on the client's behalf, through a Power of Attorney, MGMC will not consider Third Party as a client,
unless specifically agreed otherwise.
As a result, no information shall be disclosed to the 3rd Party in relation to the client and / or the
client's trading activity . However, MGMC may give trading instructions to MGMC on the client's
(c) The client authorizes MGMC to rely and / or act on any instructions sent by the former to the latter,
without the need on MGMC's part for confirming the authenticity of the instruction or the identity of
the person communicating the instruction.
9. ASSURANCES AND GUARANTEES
(a) The client assures and guarantees that:
(1) the Funds, according to paragraph 10.a below, belong
to the client and are free of any lien, charge, pledge or other encumbrance;
(2) the Funds,
according to paragraph 10.a below, are not the direct or indirect proceeds of any illegal act or
omission or product of any criminal activity; and
(3) he / she acts for his / herself and is not a
representative or trustee of a third person, unless he / she produces to the satisfaction of MGMC
document(s) to the contrary.
(b) The client guarantees the authenticity and validity of any document sent to MGMC during the
account opening process and the life of the trading account.
10. CLIENT MONEY
(a) Once received, client funds ('the Funds') shall be deposited in an institution ('the Institution')
specified by MGMC on the client's behalf, segregated from any of MGMC‟s funds.
(b) MGMC is not obliged to pay interest to the client for the Funds deposited.
(c) MGMC may, from time to time, without the client's permission merge the Funds held in different
trading accounts; under no circumstances, does this imply that the client has the right to a credit
(d) The client has the right to withdraw, at any time, any part of the Funds equal to the free margin that
is available in the relevant trading account provided that there are Funds available. It should be
noted that such request may take up to three (3) business days in order to be processed. MGMC
reserves the right to request additional information and / or documentation to satisfy itself that the
request is legitimate. In addition, MGMC reserves the right to reject such a request if it deems that
this may not be legitimate. The client accepts that under such circumstances there may be a delay
in processing the request.
(e) The client accepts that the Funds shall be deposited in his / her trading account on the value date
received by the Institution, net of any transfer fees or other charges incurred by MGMC that are
imposed by the Institution (or intermediary involved in the process) that holds the Funds.
(f ) The client accepts that the Funds shall be deposited in his / her trading account only if MGMC is
satisfied that the sender of the Funds is the client or his / her authorized representative; if MGMC
is not satisfied as to the above, then MGMC has the right to reject the Funds and return them to
the remitter net of any transfer fees or other charges incurred by MGMC, using the same transfer
method as the one through which it originally received the Funds.
(g) The client accepts that withdrawal of any part of the Funds shall be concluded using the same
transfer method and the same remitter as the one which MGMC originally received the Funds
from; under such circumstances, MGMC shall return the part of the Funds requested net of any
transfer fees or other charges incurred by MGMC.
(h) MGMC reserves the right to decline a withdrawal that the client requested using a different
transfer method and has the right to suggest an alternative transfer method.
(i) If, at any time, MGMC is not satisfied with the documentation provided by the client in relation to
the withdrawal / deposit, MGMC reserves the right to reverse to the remitter any part of the Funds
net of any transfer fees or other charges incurred by MGMC, using the same transfer method as
the one through which it originally received the Funds.
(j) The client accepts that the Institution may reverse any part of the Funds, for any reason; as a
result, MGMC shall immediately reverse the respective amount from the trading account net of
any transfer fees or other charges incurred by MGMC, using the same transfer method as the one
through which it originally received the Funds. The client accepts that this may result to a negative
balance in the trading account, under such circumstances, MGMC may merge the Funds held in
different trading accounts as described in paragraph 10.c, above.
(k) The client accepts that any request that relates to the administration of the trading account shall be
made through MGMC Direct (direct.mgmc-belize.com).
(l) MGMC shall take all reasonable steps to ensure that the client is informed regarding the progress
of any request referred to in the 'Client Money' section, specifically in relation to the expected
processing time and the need for any, or any further, documentation that if not in place may delay
(m) If the client's trading account is inactive for at least a calendar year, MGMC reserves the right to
charge an account maintenance fee of USD15 (or currency equivalent) per month in order to
maintain the trading account open.
(n) If the client's trading account has Funds of less than USD15 (or currency equivalent), MGMC
reserves the right to close the account, after notifying the client accordingly, and charge a
(a) Prior to trading CFDs the client needs to consider any applicable charges such as spreads,
commissions and swaps. The client is solely responsible for requiring clarifications from MGMC in
relation to the above, if necessary.
(b) The client should note that not all charges are represented in monetary terms (ie. charges may
appear as a percentage of the value of a trade; therefore, the client needs to ensure that he / she
understands the value that the percentage amounts to.
(c) MGMC reserves the right to change, from time to time, any of the charges applicable to clients
when trading financial instruments without prior written notice to the latter; the most up-to-date
information shall be found online at www.mgmc-belize.com
(d) The client should note that any applicable charges shall be instantly deducted from his / her
(e) Spreads and Commissions - The applicable spreads and commissions charged when conducting
a trade are available online at www.mgmc-belize.com
( f) Swaps - The swap is the value added or deducted for holding an open position overnight.
(g) Depending on the position held and the interest rates of the currency pair involved in a
transaction the client may either be credited or debited for financing the transactions; the
operation is conducted at 23:59 server time and the resulting amount is automatically converted
into the client's balance currency.
(h) From Friday to Tuesday swap is charged once and from Wednesday to Thursday swap is
charged in triple size. It should be noted that MGMC charges its own interest; the rollover interest
rates of MGMC are based on the overnight rates as provided; MGMC updates such rate as often
as it deems necessary.
( i) Further information regarding swaps can be found on
a) MGMC shall, at all times, conclude client's transactions in good faith.
b) MGMC bears no responsibility for any acts or omissions concluded by either the natural or legal
person that provides MGMC with information in relation to the execution of the client‟s transactions
in financial instruments, unless such acts or omissions were the result of negligence or fraud on
behalf of MGMC.
c) MGMC bears no responsibility for any loss of opportunity that results in reduction in the value of the
client's transactions in financial instrument, regardless of the cause of such reduction, except to the
extent that reduction occurred as a direct consequence of MGMC‟s deliberate actions or
d) MGMC bears no responsibility for any loss incurred as a result of the acts or omissions of the
Institution or its employees, including but not limited to instances false or misleading information
provided by the client.
13. INVESTOR COMPENSATION FUND
For details read the Investor Compensation Fund ('ICF') Notice, available online at
The client shall indemnify, or indemnify on demand MGMC for any costs incurred under the provision
of investment or ancillary services by the latter, including but not limited to
(i) the client's breach of the
Service Agreement or
(ii) false or misleading information provided by the client to MGMC.
15. DURATION OF THE SERVICE AGREEMENT
The Service Agreement shall be effective since the day described in the 'Commencement of the
Service Agreement' section, for an indefinite time and shall continue until its termination or default.
16. AMENDMENTS TO THE SERVICE AGREEMENT
(a) MGMC reserves the right to amend, from time to time, any part of the Service Agreement,
especially if MGMC deems that such amendments are necessary given an announcement by a
regulatory authority of a competent jurisdiction. Under such circumstances, the client shall be
notified either in writing or through MGMC‟s website (www.mgmc-belize.com) ; It should be noted
that the client's consent is not required for any amendment to be effective immediately.
(b) The client reserves the right to terminate the Service Agreement with fifteen (15) days from the
announcement of an amendment. Upon expiry, even if the client is silent, MGMC deems that the
former consents to any amendments.
17. TERMINATION AND DEFAULT
(a) The client reserves the right to terminate the Service Agreement within Fifteen (15) business days
from the announcement of an amendment under the 'Amendments to the Service Agreement'
section above, by sending a notification through registered post to the MGMC Head Office, given
that there are no open positions traded through the relevant trading account and the client has no
outstanding obligations to MGMC.
(b) The client reserves the right to terminate the Service Agreement, for any reason, having provided
a seven (7) business days written notice by sending a notification through registered post to the
MGMC Head Office, given that there are no open positions traded through the relevant trading
account and the client has no amounts due for payment to MGMC.
(c) MGMC may terminate the Service Agreement for any reason by giving the client at least seven
(7) business days written notice, specifying the termination date.
(d) The client acknowledges that MGMC reserves the right to terminate the Service Agreement
immediately by providing the former with a written notice, if paragraph 17.e, below, becomes
(e) MGMC shall immediately terminate the Service Agreement, in the event of:
(1) a violation of any part of the Service Agreement on behalf of the client,
(2) an issuance of an application, order, resolution or other announcement in
relation to bankruptcy or winding-up proceedings that involve the client,
(3) a client's death; and
(4) a client involving MGMC in any type of fraud.
( f) A termination of the Service Agreement shall not imply that any of the client's responsibilities
cease to exist; the latter shall still be liable to pay to the Firm:
(1) any amount that is due to MGMC;
(2) any expenses that are incurred by MGMC, as a result of the termination of the
Service Agreement; and
(3) any damage that has arisen because of an arrangement or settlement.
(g) Upon termination of the Service Agreement under paragraph 17.a, above, MGMC shall
immediately transfer to the client any amount available in the relevant trading account minus any
outstanding amount that is due to MGMC by the client.
(h) If paragraph 17.e, above, becomes effective MGMC reserves the right to reverse any
transactions that are deemed to be contrary to MGMC's or the clients' interests.
18. RISK DISCLOSURE
For details read Annex A of the Client Agreement.
19. CONFIDENTIALITY AND PERSONAL DATA PROTECTION
(a) MGMC shall not disclose to a third party, any of the client's confidential information unless
required to do so by a regulatory authority of a competent jurisdiction. Such disclosure shall occur
on a 'need-to-know' basis, unless otherwise instructed. Under such circumstances, MGCM shall
expressly inform the third party regarding the confidential nature of the information.
(b) The client accepts and consents that MGMC may, from time to time, contractually engage
companies for statistical purposes in order to improve MGMC‟s marketing; as a result, some or all
of the client's personal data may be disclosed on an anonymous and aggregated basis only.
20. RECORDINGS OF TELEPHONE CALLS
(a) The content of any telephone call (”the Telephone Record”) between the client and MGMC may
be recorded and saved as a magnetic or electronic record. The client agrees that MGMC has the
right to use the Telephone Records as it deems necessary, including but not limited to instances
when a dispute arises between the client and MGMC.
(b) All instructions received from the Client, during a telephone call, in relation to trading financial
instruments shall be conclusive and binding unless conditions described in paragraph 5.k of the
Terms and Conditions are triggered.
(c) MGMC may provide copies of such recordings of telephone calls to a regulatory authority of a
competent jurisdiction, without informing the client.
21. CONFLICTS OF INTEREST
(a) The client accepts that a conflict of interest may arise when the interest of MGMC competes or
interferes, or appear to compete or interfere, with the client's interests under the Service
(b) Specifically, the client accepts that:
(1) MGMC may assign or transfer the execution of the client's instruction to another
member company of the MGMC Group of Companies;
(2) MGMC may execute at the same time instructions by different clients that are
opposite to one another;
(3) MGMC may establish business, including but not limited to trading relationships,
with other issuers of financial instruments and MGMC may have a financial
interest in such instruments;
(4) MGMC acts as a market maker and in this context there may be inherent conflicts
of interest; and
(5) MGMC may pay commission, or any other related fee, to a third party as a result
(i) introducing the client or
(ii) the client's trading activity. Under such
circumstances the client shall be notified in writing.
(c) For further details, please read the MGMC Conflicts of Interest Policy; available online at
22. DIRECT CONTACT CONSENT
The client consents that any communication received by MGMC, from time to time, in relation to the
Service Agreement -or any other communication in relation to marketing- does not breach any of the
client's rights under the Service Agreement. For details read Annex A of the Client Agreement.
23. REPRESENTATIONS AND WARRANTIES
(a) The client represents that he / she has not been coerced or otherwise persuaded to enter into the
(b) The client declares that he / she is over eighteen (18) years of age, in case the client is a natural
person, or has full capacity, (in case the Client is a legal person). The client may enter into the
(c) The client accepts that MGMC reserves the right to revoke at any time, without prior written notice,
any Power of Attorney that govern the relationship of the client with his / her authorized
(d) The client declares that he / she is fully aware of any implications, including but not limited to any
restrictions, set by his / her local jurisdiction in relation to entering the Service Agreement
(e) The client declares that any trading in financial instruments is proportional and / or reasonable to
his / her specific financial situation and that independent financial advice has been sought, or will
be if necessary.
( f) The client accepts that the trading of any transactions in financial instruments shall occur only
through the MGMC trading platform(s) available at any given time to the client.
(g) The client accepts the contract specifications for each financial instrument which is available
online at www.mgmc-belize.com. In addition, the client accepts that MGMC reserves the right to
change the contract specifications without giving him / her prior written notice.
(h) If a client is more than one natural or legal persons, the client's obligations and liability under the
Service Agreement shall be joint and several. Under the above mentioned circumstances any
communication, including but not limited to a notice and order to one , shall be construed as
delivered to all natural or legal persons that together form the client.
( i) The client accepts that MGMC shall take all reasonable steps to ensure compliance with
applicable rules and regulations; such reasonable steps shall be binding upon the client.
( j) The client accepts the fact that MGMC shall have a lien on any amount that is deposited in his /
her trading account that is due for payment by the former to the latter. Although MGMC does not
need the client's consent in order to exercise the lien the former shall notify the latter of its
(k) The client represents that if an amount is due for payment to MGMC, the later shall be entitled to
debit the client's trading account.
( l) The client consents that if his / her trading account is inactive for three months and its balance is
less than Fifteen Dollars (US$ 15), or currency equivalent, then MGMC may at its discretion
disable the trading account. The client may enable his / her trading account, at any time; The
status of a trading account can be viewed through MGMC Direct (direct.mgmc-belize.com).
24. FORCE MAJEURE EVENT
(a) MGMC shall, in its reasonable opinion, determine that a force majeure occurred. Under such
circumstances MGMC shall take all reasonable steps in order to inform the client.
(b) A force majeure, is as an event or circumstance, including but not limited to any natural,
technological, political, governmental, social, economical or similar event or circumstance that
occurred after a transaction in a financial instrument and such event or circumstance has not
been anticipated at the date of entering into the transaction. In addition to the above, a force
majeure event may include instances of illegal and similar actions against the MGMC servers
that may be outside the control of with the client or MGMC.
(c) If MGMC determines that a force majeure event occurred, without prejudice to any other rights of
the client under the Service Agreement, MGCM may:
(1) increase margin requirements; and / or
(2) increase spreads; and / or
(3) decrease leverage: and / or
(4) close-out, in good faith, any open positions at a price that MGMC considers
reasonable; and / or
(5) request amendments to any closed positions; and / or
(6) suspend the provision of investment and / or ancillary services to the client, and /or
(7) amend any of the content of the Service Agreement on the basis that it is impossible
for MGMC to comply with it.
25. GOVERNING LAW AND JURISDICTION
(a) The client accepts that the Service Agreement and any investment and / or ancillary services
provided under it by MGMC shall be governed by the law of the Belize.
(b) Any proceedings and their settlement that may involve MGMC and the client shall take place in
the competent courts of the Belize.
Unless specifically instructed otherwise any
notice, instruction, request or other communication shall
be given by the client to MGMC
in writing and shall be sent to the MGMC Head Office address which
appears in the 'Contact Us' page (www.mgmc-belize.com/contacts).
Any notice, instruction, request or other communication shall be effective upon receipt by MGMC.
(b) The client shall not, under any circumstance, assign or transfer any of his / her rights and / or
obligations under the Service Agreement to another natural or legal person.
br>(c) MGMC may, under certain circumstance, assign or transfer any of its rights and/ or obligations
under the Service Agreement to another natural or legal person, in whole or in part provided that
such natural or legal person agrees to abide by the Service Agreement.
(d) If, for any reason, any part of the Service Agreement is deemed to be unenforceable by a court of
a competent jurisdiction then such part shall be severed from the Service Agreement therefore the
remainder of the Service Agreement shall remain unaffected.
227. IMPORTANT INFORMATION
(a) CFDs are not eligible for sale in certain jurisdictions or countries. The Notice is not directed to any
jurisdiction or country where its publication, availability or distribution would be contrary to local
laws or regulations, including the United States of America. The Notice does not constitute an
offer, invitation or solicitation to buy or sell CFDs. It may not be reproduced or disclosed (in whole
or in part) to any other person without prior written permission. The Notice is not intended to
constitute the sole basis for the evaluation of the client's decision to trade in CFDs.
(a) Questions regarding the Terms and Conditions should be addressed, in the first instance, to the
Customer Support Department.
(b) Customer Support Department
29. ADDITIONAL CONTACTS
(a) Dealing Department
(b) Compliance Department
Annex A: Risk Disclosure Notice
RISK WARNING: Contracts for Difference (CFDs) are complex financial products, which have no set
maturity date. Therefore, a CFD position matures on the date a client chooses to close an existing open
position. CFDs, which are leveraged products, incur a high level of risk and can result in the loss of all
of the client's invested capital. Interest is not guaranteed. As a result, CFDs may not be suitable for all
individuals. The client should not risk more than he / she is prepared to lose. Before deciding to trade,
the client shall ensure that he / she understands the risks involved and take into account his / her level
of experience. The client may seek independent advice, if necessary.
SCOPE OF THE NOTICE
1.1 The Risk Disclosure Notice ('the Notice') is provided to the client in accordance with IFSC on the
basis that you are proposing to trade with MGMC in contracts for difference ('CFDs'). These are
leveraged products, and you can incur a high level of risk which can result in the loss of all your
1.2 It should be noted that the Notice does not contain all the risks and aspects involved in trading
CFDs; therefore, the client needs to ensure that his / her decision is made on an informed basis
taking into consideration the following:
2.1 A CFD is an agreement to either buy or sell a contract that reflects the performance of, including
amongst others, forex, precious metals, futures and shares. The profit or loss is determined by the
difference between the price a CFD is bought and the price it is sold at and vice versa. CFDs are
traded on margin and it should be noted that no physical delivery of either the CFD or underlying
asset occurs. It should be noted that when clients purchase CFDs on shares they are merely
speculating on the share's value to either increase or decrease.
2.2 CFDs fluctuate in value; the price movements of CFDs are determined by a number of factors
including but not limited to speculation and availability of market information.
3.1 It should be noted that past performance of CFDs is not a useful indicator of future performance.
MAIN RISKS ASSOCIATED WITH TRANSACTIONS IN CFDs
4.1 Prior to trading CFDs, the client needs to ensure that he / she understands the risks involved in
CFDs which are, leveraged products; therefore, they carry a higher level of risk to the client‟s
capital compared to other financial products. The value of CFDs may increase or decrease
depending on market conditions.
4.2 Due to the fact that CFDs are leveraged products, engaging in CFD trading may not be suitable
for the client and independent advice should be sought if necessary. The potential for profit must
be balanced alongside prudent risk management given the significant losses that may be
generated over a very short period of time when trading CFDs.
4.3 The client should not commence trading in CFDs unless he / she understand the risks involved.
5.1 CFDs, which are leveraged products, incur a high level of risk and can result in the loss of all of
the client's invested capital. However, it should be noted that MGMC operates on a 'negative
balance protection' basis; this means that the client cannot lose more than his / her initial
6.1 When trading CFDs, the client is effectively entering into an over-the-counter (OTC) transaction.
This implies that any position opened with MGMC cannot be closed with any other entity. OTC
transactions may involve greater risk compared to transactions occurring on regulated markets,
for example traditional exchanges. This is due to the fact that in OTC transactions there is no
counterparty and either party to the transaction bears certain credit risk (or risk of default).
LEVERAGE ( OR GEARING)
7.1 CFD trading, unlike traditional trading, enables the client to trade the markets by paying only a
small fraction of the total trade value. However, it should be noted that leverage, or gearing as it
is often referred to, means that a relatively small market movement may lead to a proportionately
much larger movement in the value of the client‟s position. MGMC offers flexible leverage starting
from 1:1 up to 1:500.
Nonetheless, it should be noted that leverage on gold and silver is fixed at 1:50. Every Friday
from 21.00 until 24.00 server time, or during any other time period specified by MGMC.
MGMC sets a maximum leverage rate for opening a position of 1:100. If the latter occurs the
client shall be informed accordingly.
7.2 It should be noted that MGMC shall monitor the leverage applied to client‟s positions, at all times;
MGMC reserves the right to decrease the leverage depending on the client's trade volume.
7.3 For further details refer to
MARGIN ACCOUNT AND REQUIREMENTS
8.1 The client needs to ensure that he / she has sufficient margin on his / her trading account, at all
times, in order to maintain an open position. In addition, the client needs to continuously monitor
any open positions in order to avoid positions being closed due to the unavailability of funds. It
should be noted that MGMC is not responsible for notifying the client for any such instances.
8.2 At margin levels of 10% for MGMC Top Trader, MGMC has the discretion to begin closing
positions starting from the most unprofitable one. In addition, at margin levels of 5% for MGMC
Top Trader, MGMC shall automatically begin closing positions at market price, starting from the
most unprofitable one.
ABNORMAL MARKET CONDITIONS
9.1 Under abnormal market conditions, CFDs may fluctuate rapidly, due to unforeseeable events that
cannot be controlled either by MGMC or the client. As a result, MGMC may be unable to execute
the client's instructions at the declared price and a • estop loss' instruction cannot guarantee to
limit the latter's loss.
9.2 CFD prices are influenced by, amongst other things, implementation of governmental,
agricultural, commercial and trade programs and policies and national and international
socioeconomic and political events.
TRADING PLATFORM CONDITIONS
10.1 The client accepts that the only reliable source of price related information is the Quotes
represented on the real / live server. This service may be disrupted and as a result price related
information may not reach the client.
10.2 The client shall regularly consult the 'Help' menu or User Guide of the trading platform(s). If a
conflict arises the Service Agreement shall prevail unless MGMC determines, in its sole
11.1 MGMC bears no responsibility for any loss that arises as a result of delayed or unreceived
communication sent to the client by MGMC.
11.2 In addition, MGMC bears no responsibility for any loss that arises as a result of unencrypted
information sent to the client by MGMC that has been accessed via unauthorized means.
11.3 MGMC bears no responsibility for any unreceived or unread internal messages sent to the client
through the trading platform(s). In case a message is not received or read within seven (7)
calendar days the message gets automatically deleted.
11.4 The client is solely responsible for the privacy of any information contained the communication
sent to MGMC.
11.5 Moreover, the client accepts that any loss that arises as a result of unauthorized access of a
third party to the client's trading account is not the responsibility of MGMC.
FORCE MAJEURE EVENT
12.1 In case of a Force Majeure, the client shall accept any loss arising from it.
12.2 For Further details read the 'Force Majeure Event' section, above.
13.1 Although investing in CFDs does not involve taking physical delivery of the underlying financial
instrument, independent tax advice should be sought, if necessary, to establish whether the
client is subject to any tax, including stamp duty.
14.1 Through the trading platform(s), the client may review any of his / her trading accounts including
but not limited to open and closed positions. In addition, through MGMC Direct (direct.mgmcbelize.com)
the client may safely manage his / her account and deposit or withdraw money
depending on his / her trading needs.
15.1 MGMC bears no responsibility for any loss that arises as a result of a system failure, including but
not limited to:
15.1.1 hardware or software failure, malfunction or misuse either on the client's side or the
Firm's or both;
15.1.2 poor internet connection either on the client's side or MGMC or both;
15.1.3 incorrect settings in the client terminal; and
15.1.4 delayed updates of the client terminal.
15.2 The client accepts that at times of excessive transaction flow there might be some delay in
contacting, over the telephone, a member of the Dealing Department, especially when there are
important market announcements.