/6/16 · Negative Balance Protection Binary Options Brokers Unregulated ECN Spread Betting High leverage Large accounts Deposit No deposit Guides Platforms MetaTrader 4 MT 4 Charts How to use MetaTrader 4 MetaTrader 5 cTrader Forex trading apps Best Forex /6/23 · The best rated Negative Balance Protection broker eToro offers competitive offers for Stocks, Commodities, Forex, CFDs, Social Trading, Indices, Cryptocurrency, Index Based Funds, Exchange Traded Funds (ETF). eToro minimum deposit is Forex brokers supervised by a Tier-1 regulator offer more security to retail investors. It’s also possible to trade other asset classes (i.e., shares and cryptocurrencies) with forex brokers. ECN forex brokers have more competitive spreads, starting with pip
Top 5 Best Forex Brokers With Negative Balance Protection
In normal circumstances, forex traders may suffer a certain amount of losses. However, their balance could not possibly down to negative territory either due to stop losses that were placed by the traders themselves or stop out feature that was set up by the brokers.
Still, forex brokers that offer negative balance, negative balance may occur in extraordinary circumstances. In an otherwise ordinary Thursday in Januarythe Swiss National Bank suddenly scrapped its currency peg of 1. This announcement turned into a debacle of gigantic proportion for people who had previously sought after the CHF under presumption of safety and stability. CHF traders accounted for a large forex brokers that offer negative balance of those hardest hit.
More specifically, forex traders that suffered negative balance in the aftermath and their brokers came after them to collect the money they owe. Such situation is rare, but not impossible to occur again in a leveraged-trading environment. Consequently, there are a lot of traders who seek to know whether their own forex broker will sue them for negative balance. After all, who wants to face enormous debt with legal action on top of losing all of their money in the market!?
Following the CHF-related Black Thursday, several forex brokers were quick to reassure their traders that they had established a " negative balance protection " policy. But this measure was not taken by every forex broker. Therefore, there are two types of answers to the question of "will forex broker sue us for negative balance? Negative balance protection policy implies forex brokers' willingness to forgive negative balance under any circumstances.
In case negative balance occurs, trader's own balance will be zero-ed and the broker will not sue them for money owed. Negative balance protection ensures the trader would not lose more money than deposited. In the following years, negative balance protection remains as one of the most sought-after features among traders.
Several brokers that provide it, among others: XM Group, IC Markets, FXPro, AVATRADE, HotForex, Exness, OctaFX, XTB, City Index, Admiral Markets, Tickmill, IG, Pepperstone, Markets. com, Plus, and eToro. There are arguments that forex brokers who provide negative balance protection are market makers. Regardless, several brokers mentioned above provide ECN accounts as well which would still be favorable for professional traders. On the other hand, market makers could also be forex brokers without negative balance protection.
Obviously, forex brokers unwilling to provide negative balance protection would not advertise themselves as such.
One of the more obvious characteristics is that they do not discuss negative balance in trading terms and conditions or trading policy documents. But you have to read numerous documents to know that. It would be easier to ask Customer Support CS on what their company would do in case of negative balance. Still, this option would only work if we could believe in what the CS says. Or else, you could depend on traders' forums to tell you whether certain forex brokers that offer negative balance brokers have sued traders before.
Several threads in Forex Factory will tell you what more experienced traders have found. Among others:. Further examination would reveal that US and UK forex brokers could legally sue traders to return money owed in absence of negative balance protection.
However, forex brokers that offer negative balance is another matter entirely whether we have to pay them. Forex traders who reside in the same jurisdiction with their brokers may receive court summons and property seizures in case they fail to pay. This is particularly relevant for US and UK traders who had to deal with strict legal and financial measures.
However, forex traders who live in Asia, Africa, and so on, could go scot-free because of their brokers' inability to sue them legally across different jurisdictions, forex brokers that offer negative balance.
So, what could we conclude? First, it is important forex brokers that offer negative balance choose forex brokers with negative balance protection in order to avoid legal debacle due to negative balance incidents in the future. Second, it is important to read the fine prints on trading terms and conditions provided by your broker. A lot of problems could be avoided as easily as taking careful steps in choosing your broker. Aisha has been working with forex industry since Currently active as independent trader and educator in financial trading and investment.
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TOP 5 BEST FOREX BROKERS WITH CENT ACCOUNTS ( revealed ) ��
, time: 7:4122 Best Forex Brokers with Negative Balance Protection - ( Reviewed ) - SA Shares
FP Markets is an award winning broker, regulated throughout the European Union and Australia, which offers negative balance protection. And FP Markets offers raw spreads, execution speed lower than 40 ms and leverage as high as if you are a professional trader /6/23 · The best rated Negative Balance Protection broker eToro offers competitive offers for Stocks, Commodities, Forex, CFDs, Social Trading, Indices, Cryptocurrency, Index Based Funds, Exchange Traded Funds (ETF). eToro minimum deposit is /8/9 · The platform adheres to many regulations and policies, including CySEC, IFSC, ASIC, and FCA. Fxpro broker company is regulated, and It ensures all traders are offered negative balance protection in Order Execution Policy. Avatrade broker’s platform offers negative balance protection. They put in their contract:Estimated Reading Time: 6 mins
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