Please correct me if im wrong…but I thought FOREX trading was risky only as far as the money you PUT INTO IT and THEN LOSE. Not any money beyond what you deposit. Im in the process of filling out an application to open a live account and they are asking for everything but my socks. Why do they need to know me total assets and net worth? Do people lose their homes trading forex? Especially trading with a mini account and with such small lot sizes equal to .10 cents per pip, Id like to know the reason they are asking for so much. Can anyone help me understand.
Hi My Friend, im new to forex as well and im from england, i think its just a usa thing, i tried to open an account with cms virtual trader platform that they wanted to know everything. If you were a criminal and wanted to launder some money the fx would be a good place to do it, plus your tax laws are so tight so they want to know the ins and out of everything. I have now opened an account in the uk with only 1 pip spreads, happy days and uk law states that its tax free as it comes under betting laws so its easy to open an account for uk residents, ive had a look for you but usa residents cant open an account with worldspreads in uk, so unless you want to move to uk i think brokers will all ask for a lot of infomation in the usa. Good pip hunting, sorry i couldnt help. Cheers Nigel
Thanks for the reply trooper the tax situation and trading is definitely not the greatest here in the states but our gov’t wants a piece of ANYTHING that makes money TRUST THAT. My MAIN concern however was the thought that it was possible to lose MORE than my initial investment into FOREX. The Broker’s questions about assets owned and net worth had me a little nervous and thinking that if maybe my account went negative 100 pips on me it would also make me lose more money than what i put into it
Even though this is a report from 2000 this is something you might want to look at Trooper. Central Europe Review - EC Progress Reports 2000: Bulgaria
Hi thanks for the info on bulgaria ive been there a couple of times skiing with the family food is crap but very cheap there are a lot of brits buying property there but i dont trust it not yet anyway. Dont worry too much about losing a lot only trade a max of 5% of your bank and i would say 1% for the first month then increasing up to 5%. Just come back of a course in england very good no hype. Keep you stops between 30-50 and set your self a target of just scalping 10 pips a dayand you will be fine. Hes the website learntrading.co.uk there are a lot of worldwide companies trying to sell software in uk for 10k us dollars telling us its the holy grail yeah right ive done a lot of research and babypips seems to be the best information site ive found another good site for fundermentals is forexfactory. Off too bed now getting up at 6am london time to start trading good luck tomorrow keep me posted on how you are getting on i no im new but if i can help i will cheers nigel ps if you send me an email i will send you some good information i got on the course. <[email protected]>
Im learning more and more that joining forums like this one are very useful. Tropper thank you for that info. I took down your email and those other websites you gave me. Im sure I will be in touch more often and yea I will update you on what happens with my trading. Thanks again.
What platform are trying to open an account with? You might want to goto another platform. I live in the U.S. and I was not asked those kinds of qusetions. The main question you have to ask them is “Will you allow my account to go into a negitive balance?”
Interbank FX requires all of that information when opening a live account. I did ask them how far they would let the account go negative. They said there is no way they would let a customer lose more than the inital deposit. Yea right, I’ll make sure I dont ever risk more than 3% ever…lol
Most (but not necessarily all) brokers will automatically close out your positions if your net account value falls below the required minimum margin amount for your open positions. Under most circumstances that would prevent you from losing more than your initial deposit. In theory, though, a very violent move could end up leaving you with a deficit. Make sure to read the disclosure statements closely.