RISK WARNING

Monecor (London) Limited, trading as ETX Capital (ETX Capital, we or us), is

authorised and regulated by the Financial Conduct Authority (FCA) under
reference number 124721. The financial products and services offered by us
carry a high level of risk which may make them unsuitable for some investors.
This Risk Warning is provided to you in compliance with FCA Rules. It is
intended to help you understand the risks involved in using our products and
services but is not a comprehensive guide to all such risks. Ultimately it is for
you to determine whether the risks involved are appropriate for your
investment strategy and risk appetite.
You should not deal in derivatives unless you understand the nature of
the contract you are entering into and the extent of your exposure to risk.
Only speculate with money you can afford to lose.
You can rapidly lose more on a trade than the deposit used to open the
trade.
We do not provide investment advice. If you are unsure whether this form of
investing is suitable for you, you should seek advice from an authorised
financial adviser. We are not authorised to give investment advice of any kind
and therefore will not give advice to you. However, from time to time, we may
provide factual information in relation to an underlying market or a transaction
which you have enquired about.
Whilst derivative instruments can be utilised for risk management purposes,
some investments are unsuitable for many investors. Different instruments
involve different levels of exposure to risk, and in deciding whether to trade in
such instruments, you should be aware of and carefully consider the following::

1 CONTRACTS FOR DIFFERENCE (CFD)

Contracts for Difference can be likened to futures which can be entered into in
relation to commodities, indices, shares or currency pairs. However, unlike
other futures and options, these contracts can only be settled in cash.
Investing in a CFD carries risks similar to investing in a future or an option and
you should be aware of these. Transactions in CFDs may also involve a
contingent liability (see paragraph 12 below).

2 ROLLING FOREX OR CURRENCY OPTIONS

Investing in rolling forex or currency options carries similar risks to investing
in futures. Transactions in rolling forex or currency options may also have a
contingent liability (see paragraph 12 below).

If you have pursued only conservative forms of investment in the past, you may
wish to study currency trading further before entering into an investment of
this nature. You must realize that the limited risk in buying options means you
could lose the entire option investment should the option expire worthless. If
you wish to continue with your investment, you acknowledge that the funds
you have committed are purely risk capital and loss of your investment will not
jeopardize your style of living nor will it detract from your future retirement
program. Additionally, you fully understand the nature and risks of currency
investments, and your obligations to others will not be neglected should you
suffer investment losses.

3 NON-UK MARKETS AND FOREIGN EXCHANGE

Foreign markets involve different risks from UK markets, in some cases,
greater risks, such as the risk of political or economic policy changes in a
foreign country which may alter the condition terms, marketability or price of a
foreign currency. The potential for profit or loss from transactions on foreign
markets or in contracts denominated in a foreign currency will be affected by
fluctuations in foreign exchange rates. Where you maintain trades or have
funds on deposit in your account with us in a currency other than your
national/domestic currency, you are exposing yourself to cross-currency risk. It
is your responsibility to manage this risk and we shall not liable for any losses
that you suffer as a result. The off-exchange foreign currency trading you
enter into is not conducted on an interbank market, nor is it conducted on a
futures exchange subject to regulation as a designated contract market by any
regulatory authority.

4 BINARY OPTIONS
Trading in binary options is highly speculative, involves an outstanding risk of
loss and in not suitable for everyone. Binary options trading can only be
settled in cash. ETX Capital will provide the prices to be used in trading and
valuation of binary options in accordance with its trading policies and
procedures. The trading rates assigned to the assets on ETX Capitals website
are the ones at which it is willing to sell binary options to you at the point of
sale. As such, the prices may not directly correspond to real time market levels
at the point in time at which the sale of the binary option occurs.

5 MARGIN
You can rapidly lose substantially more on a trade than that which you have
deposited with us to open that the trade (the Margin). Any market losses
exceeding the Margin will be taken from your account. You may be called upon
to deposit additional Margin at short notice to maintain your trade. We will
revalue your open trades continuously during each trading day, and any profit
or loss will be immediately reflected in your account. A loss may require you to
immediately to deposit additional funds in your account in order to maintain
your open trades. We may also change our Margin rates and/or notional
trading requirements at any time, which may also result in a change to the
Margin you are required to maintain for a trade. If you do not have sufficient

margin in your account, your trade may be closed out, without further
reference to you, at a loss and you will be liable for any deficit.
Margined currency trading is one of the riskiest forms of investment available
in the financial markets and is only suitable for sophisticated individuals and
institutions. Given the possibility of losing an entire investment, speculation in
the foreign exchange market should only be conducted with risk capital funds
that if lost, will not significantly affect your personal or institutions financial
wellbeing.

6 TRADING OFF-EXCHANGE
When you trade with us, you will be entering into an off-exchange (also known
as an over-the-counter, or OTC) derivative which is non-transferable. This
means you will enter into trades directly with us and those trades must be
closed with us. We will be your trading counterparty, meaning when you sell,
we will be the buyer and when you buy, we will be the seller. You will not be
able to sell or transfer your trades to third parties. This can involve greater risk
than investing in a financial instrument which is transferable, or dealing in an
exchange-traded derivative, because your ability to open and close trades and
offset positions is limited to what we offer you, as there is no other market for
these transactions. The prices we quote may not necessarily reflect the wider
market. Although we expect that these prices will be reasonably related to
those available on the wholesale market, prices we use may vary from those
available to other participants in the wholesale market. Consequently we may
exercise considerable discretion in setting margin requirements and collecting
margin funds.
We may offer any price we wish and may offer prices derived from outside
sources or not in our discretion. We may establish our prices by offering
spreads from third party prices but we are under no obligation to do so or
continue to do so. We may offer different prices to different customers at any
point in time on our own terms. Our Terms and Conditions alone govern the
obligations we have to you to offer prices and offset or liquidating transactions
in your account and make any payments to you. The prices we offer may or
may not reflect prices available elsewhere at any exchange, interbank or other
market for foreign currency.

7 ETX CAPITAL TRADING PLATFORMS

Each ETX Capital trading platform is not an exchange; it is an electronic
connection which enables you to transact with us. You will not be trading with
any other entities or any other customers by accessing the platform. The
availability and operation of the platform, including the consequences of the
unavailability of the platform for any reason, is governed only by the terms of
our Terms and Conditions.

8 LOSS LIMITS MAY NOT BE GUARANTEED

Unless we have offered you a guaranteed stop loss order and you have paid
any required premium for this protection your stop loss order is not
guaranteed.
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Placing stop loss orders that are intended to limit losses to certain amounts
may not always be effected because market conditions or technological
limitations may make it impossible to execute such orders. In some
circumstances, your loss may even be greater. Slippage (also called gapping)
occurs when the market moves past the price at which you have set your stop
loss order. This may occur because the particular underlying market has
become unusually volatile. For example, the underlying market may have
stopped trading at a point above your stop loss order price and after a period
of time, may recommence trading at a price below your stop loss order price.
In such a circumstance we would close your open trade at or as quickly after
the reopening of trading in that underlying market, i.e. at the next price
available.
Additionally, markets may also be extremely busy when the
underlying market becomes volatile and, in accordance with our Order
Execution Policy, we will execute orders on a first-in-first-traded basis. This
may result in your stop loss order being executed at a price below your stop
loss order price in a rapidly falling underlying market.

9 PAST PERFORMANCE
Past performance is not necessarily indicative of
representation can be made as to future performance.

future

results.

No

10 TRADING SUSPENSION
At times, market conditions and the operation of the rules of certain markets
(i.e. suspension of trades due to volatility, lack of liquidity in the underlying
market) may make trading more risky. This may lead, in extreme cases, to a
change of the settlement of a contract. We reserve the right to change
settlement for contracts expiring on a given day if, on that day, trading is
suspended.

11 LEVERAGE AND GEARING

Leverage or gearing enables you to enter into trades with a comparatively small
deposit (also called margin) relative to the overall contract value. However, this
means a small movement in the underlying market can have a
disproportionately dramatic effect on your trade and may result in the loss of
your entire margin amount and leave you liable for any other losses sustained
on the position. It is, therefore, imperative that you only speculate with money
that you can afford to lose.

12 CONTINGENT LIABILITY TRANSACTIONS

Where a trade is margined, we require you to make a series of payments
against the purchase price, instead of paying the whole purchase price
immediately. You may sustain a total loss of the margin you deposit in order to
establish or maintain a position. If the market moves against you, you may be
required to pay substantial additional margin at short notice to maintain the
position.
Even if a trade is not margined, it may still carry an obligation to make further
payments in certain circumstances over and above any amount paid when you
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entered into the contract. Contingent liability transactions which are not traded
on or under the rules of a recognised or designated investment exchange may
expose you to substantially greater risks.

13 SPREADS, COMMISSIONS AND COSTS

Before you begin to trade with us, you should obtain details of all commissions
and other charges for which you will be liable. If any charges are not expressed
in money terms (for example, as a bid offer spread), you should obtain a clear
explanation of what such charges are likely to mean in specific money terms.
In the case of futures, when commission is charged as a percentage, it will
normally be as a percentage of the total contract value, and not simply as a
percentage of your initial payment.
Depending on the type of trade you make and how long it lasts we may require
you to pay financing costs. Also, if you trade in currencies other than your
base currency we may require you to convert those foreign currencies to your
base currency. The aggregate of financing costs and foreign exchange costs
may exceed any profits on your trade or increase the losses you may suffer on
a trade.

14 TAX RISK
You take the risk that your trades and any related profits may be or become
subject to tax. We do not represent or warrant that no tax or stamp duty (other
than trading duty) will be payable. You will be responsible for all taxes and
stamp duty in respect of your trades. ETX Capital does not provide any tax
advice to clients, and you are responsible for your own tax affairs.

15 YOUR MONEY
If you have been categorised as a Retail Client (as defined in our Terms and
Conditions), we will hold your money in a segregated client money bank
account, separate from our money. However, you should be aware that this
may not provide complete protection (for example, in the event of the
insolvency of our bank).
If you have been categorised as a Professional Client or an Eligible
Counterparty (as defined in our Terms and Conditions), your money will not be
segregated from money held in our account(s) and may be used in the course
of our business. In the event of our insolvency, you will rank as a general
creditor.
Your attention is also drawn to Your Money section of our Terms and
Conditions.

16 WEEKEND RISK
Various situations, developments or events may arise over a weekend when
currency, commodity and other markets generally close for trading, that may
cause the markets to open at a significantly different price from where they
closed on Friday afternoon. You will not be able to use the ETX Capital
Platform to place or change orders over the weekend or at other times when
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the markets are generally closed. There is substantial risk that stop loss
orders left to protect open positions held over the weekend will be executed at
levels significantly worse than their specified price.

17 INSOLVENCY
Any insolvency or default may lead to positions being liquidated or closed out
without your consent.

18 INTRODUCTIONS BY THIRD PARTIES

We may, in our sole discretion, compensate third parties for introducing your
account to us. Such third parties are not required to have and may not have,
any special expertise in trading, and may have conflicts of interest based on
the method by which they are compensated.
You should investigate
thoroughly the manner in which such a person is compensated and be very
cautious in granting any person or entity authority to trade on your behalf.

You should only engage in derivatives trading if you are prepared to

accept a high degree of risk and in particular the risks outlined in this
Risk Warning. You must be prepared to sustain the total loss of all
amounts you may have deposited as well as any losses, charges (such as
interest) and any other amounts (such as costs) we incur in recovering
payment from you.
16 FEBRUARY 2014