In the next few weeks I intend to open a CFD trading account using the City Index trading platform. There is an offer on their site now for refering a friend and after 5 trades the referer gets 100.

Is there anyone on here that trades CFD's on this platform and want to refer me as a freind??

Also why is it that people say CFD trading is very risky?

CFD trading is on margin. You only have to upfront typically 10% of the balance. But if your position goes the wrong way, you will be required to pay the full amount of the loss, which could be substantial if you haven't taken the correct precautions. Risky, but if you know what you are doing, can be profitable.

Before placing your bet, work out your liability of the market moving opposite to that which you expect and place your stop loss immediately that you place your deal. Protect you pot. Also calculate running costs (interest charges) of maintaining or closing a position in a sideways trading market.

It is said; "More traders go bust than make money!".