What is an Appropriateness Test and why do customers have to do this?

Appropriateness Test includes questions relate to the knowledge and experience that customers have of the instruments in which they are interested in trading.

If a customer wishes to trade in complex financial instruments such as CFDs or FX, customers might be required to answer some questions in accordance to the regulatory requirements of the selected entity. These questions relate to the knowledge and experience that customers have of the instruments in which they are interested. Based on the answers, FXDD will assess whether the product is appropriate for the customer. If the customer decides to proceed and open an account with FXDD, the customer is confirming that they are aware and understand the risks. This assessment is only made the first time the customer trades in complex instruments.