Clients can get access via the website(s) of Smart-Markets GmbH to online trading platforms for leveraged financial products (e.g. foreign currencies, CFDs, ETFs, etc.)
It is pointed out that Smart-Markets GmbH does not perform any activities or services for the client that require official approval. According to the current legal situation, the BaFin (German Federal Financial Supervisory Authority) has the opinion that directly referring of clients to broker partners does not constitute business requiring official approval, provided that no non-core investment services are tied to this.
The terms of contract enclosed with the account opening documents and the GTC and risk notices of the respective cooperation partner apply to the legal relationship between the respective cooperation partner and the client. The legal basis of all transactions in the trading on the online trading platform exclusively consists of the general terms and conditions of the respective cooperation partner.
Smart-Markets GmbH is an agent and has access neither to the client’s account or capital nor to the order execution. The contractual partner for trading is exclusively the chosen broker.
If applicable, Smart-Markets GmbH will be granted access to the client’s trading activity whereupon Smart-Markets will offer a support service to the client for the use and operation of the cooperation partner’s trading platform. Statements of intent by the client on the acquisition or sale of financial instruments will be transmitted exclusively from the client directly to the cooperation partner of Smart-Markets GmbH (= the client’s contractual partner).
No Investment Advice
Smart-Markets does not provide any investment advice beyond the statutory information requirement, and the disclosure and notification duties. Smart-Markets GmbH never makes an investment recommendation that is oriented on the client’s personal situation, in particular not in the form of consulting for the individual instructed transactions or for the composition of the portfolio.
Information, programs, analyses, webinars, seminars, training, videos, etc. provided to the client likewise do not constitute an investment or trading recommendation.
The client is aware that trading with leveraged financial products is highly speculative and can lead to substantial losses or even total loss. Losses can even go beyond the risk of total loss (e.g. unlimited loss risk for professional clients; retail clients are excluded from the obligation to make subsequent payments by many brokers). Be sure to enquire directly with the broker or look it up in the broker’s GTC.
Trading with foreign currencies and derivatives, even if clients use additional external trading systems, exchange rates, programs, research or recommendations is an investment form that is not suitable for many people and for which exclusively risk capital should be used. Clients should therefore examine their financial situation carefully and consult with their financial advisers regarding the suitability of the investment before they make an investment or transaction.
Every client must be aware that large trading volumes can be moved with small capital investments in leveraged trading with financial products. The conditions favourable for clients (spreads, fees,...) depend on the trading volume (and not the capital invested). Accordingly, these conditions of trading can amount to a proportionally large sum relative to the capital invested.
Likewise, the engagement of so-called money managers or asset managers harbours tremendous risks. In such an engagement, clients give a third party or institution the permission to initiate transactions on their trading account. If the client should have been provided with the money or asset manager’s trading results of the past, these are no guarantee for future results. Smart-Markets GmbH does not assume any liability and excludes all liability for other statements by the money or asset managers to the client, as well with regard to profit expectations, their trading behaviour or potential risks. Clients should in this case as well examine their financial situation carefully and consult with their financial advisers regarding their suitability before making a decision regarding a money or asset manager.
When using automated trading systems, multiple trades can be executed at short intervals as the case may be. This may potentially result in large leveraged positions on the client’s trading account.
Regarding the use of modules, indicators and full and semi-automated trading systems (hereinafter referred to as “Programs”) of Smart-Markets GmbH, clients are requested to note the following:
- Programs are programmed and tested by Smart-Markets GmbH to the best of its knowledge and belief. Due to the multitude of configuration options and countless feasible patters of market behaviour, however, it is not possible to test and cover all contingencies. Therefore, Smart-Markets GmbH cannot assume any liability for the use of Programs by customers.
- Insofar as clients receive a so-called backtest or conduct one on their own, the past results never represent a profit guarantee for the future.
- Clients should use trading systems of Smart-Markets GmbH only after sufficient testing and familiarise sufficiently with the modes of functioning and configuration options of the respective system.
- Clients bear the sole responsibility for the use of programs of Smart-Markets GmbH. Clients must install the programs themselves on their computers/servers, integrate them on the respective trading platform, adjust the configurations and start the system.
- Clients should ensure the best possible technical connection with their broker. Interruptions of this connection can lead to malfunctioning of the programs and thereby also to substantial losses.