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ARTICLE · 24 AUGUST 2026

Can A Forex Broker Give Trading Advice Under An Execution-Only Agreement?

Christos Paraskevas LLC
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When a Forex or CFD broker's written agreement states "execution-only" service, but account managers regularly recommend specific trades, position sizes, and additional deposits, does the contractual label reflect reality? This analysis examines the critical distinction between genuine execution-only services and situations where firms may be providing investment advice without proper regulatory safeguards, and why the actual communications between broker and client can matter more than the written terms.

CyprusFinance and Banking
Christos Paraskevas
Christos Paraskevas

Many Forex and CFD clients sign agreements stating that the broker provides an “execution-only” service.

In simple terms, this normally means that the client makes the investment decisions and the firm executes the orders.

But what happens when the written agreement says “execution-only”, while an account manager is regularly telling the client:

  • which asset to trade;
  • whether to buy or sell;
  • how much money to invest;
  • when to open or close a position;
  • not to close a losing trade; or
  • to deposit additional funds in order to recover previous losses?

That distinction may become highly important in a subsequent dispute.

What Does “Execution-Only” Mean?

Under MiFID II, different investor-protection obligations apply depending on the investment service being provided.

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The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

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