Guaranteed Stops
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  1. #1
    Join Date
    Mar 2006
    Posts
    8

    Default Guaranteed Stops

    Are there brokers out there who guaranteed their stops? Even during a major news release situation?

  2. #2
    Join Date
    Apr 2006
    Posts
    3
    From personal experience I know for a fact that FXCM and GFT guarantee their stops. I've heard that CMS does too but I don't have any first hand experience with them.

  3. #3
    Join Date
    Apr 2006
    Posts
    48
    I believe all of them guarantee stops, but only in most situations.

  4. #4
    Everyone, I have a question. On 16 January 2015 there was big news and CHF moved so big with a huge gap. FXCM broker for example lost 90% of their money because of this. The forex broker called IG Market also lost too much, over 40 million dollar because of 1 gap in the market on that day (on 16th January 2015). Maybe FXCM and IG market will go bankrupt now, who knows? The problem is that IG market offers 'guarenteed stoplosses'. What this means is, when there is a huge gap, then we (the trader) won't pay the big negative amount. But instead, the broker in this case IG market pays for it.

    We (the traders) are saved because we can use 'guarenteed stoploss' (at least if we paid the 3 points premium extra). But the broker of course pays for the trade that went in negative. So your money might be saved and you still have, for example 1000 dollar on your forex account. But can you withdraw it? If the broker doesn't have any more money and instead is in debt then you cannot get your money back. This happened to me before, my broker went bankrupt and now 3 years later I never got my money back. As far as I know there is no website where I can see which broker is almost bankrupt. Or does anyone know a comparison website or source where to check which brokers worldwide has a stable financial balance that won't go bankrupt?

  5. #5
    Join Date
    Jun 2013
    Posts
    263
    Quote Originally Posted by michaellobry View Post
    Everyone, I have a question. On 16 January 2015 there was big news and CHF moved so big with a huge gap. FXCM broker for example lost 90% of their money because of this. The forex broker called IG Market also lost too much, over 40 million dollar because of 1 gap in the market on that day (on 16th January 2015). Maybe FXCM and IG market will go bankrupt now, who knows? The problem is that IG market offers 'guarenteed stoplosses'. What this means is, when there is a huge gap, then we (the trader) won't pay the big negative amount. But instead, the broker in this case IG market pays for it.

    We (the traders) are saved because we can use 'guarenteed stoploss' (at least if we paid the 3 points premium extra). But the broker of course pays for the trade that went in negative. So your money might be saved and you still have, for example 1000 dollar on your forex account. But can you withdraw it? If the broker doesn't have any more money and instead is in debt then you cannot get your money back. This happened to me before, my broker went bankrupt and now 3 years later I never got my money back. As far as I know there is no website where I can see which broker is almost bankrupt. Or does anyone know a comparison website or source where to check which brokers worldwide has a stable financial balance that won't go bankrupt?
    why would you open up a 9 year old dead thread to ask this question?

    start a new one instead of going grave digging.

  6. #6
    Quote Originally Posted by rindoan View Post
    why would you open up a 9 year old dead thread to ask this question? start a new one instead of going grave digging.
    What difference does it make? If the thread is relevant then it's relevant.

  7. #7
    Join Date
    Jun 2013
    Posts
    263
    Quote Originally Posted by mastergunner99 View Post
    What difference does it make? If the thread is relevant then it's relevant.
    Cause all other comments in the thread would usually be outdated and not valid anymore if they relate to brokers and who offers what etc.

    Comment 2 for example states something specific abt 2 brokers which is no longer valid.

  8. #8
    Quote Originally Posted by rindoan View Post
    Cause all other comments in the thread would usually be outdated and not valid anymore if they relate to brokers and who offers what etc. Comment 2 for example states something specific abt 2 brokers which is no longer valid.
    Then perhaps you should petition Babypips to remove all for a reason. Even better, why don't you police all of the old threads and let us know which ones are no longer valid to post on.

    Or perhaps you can just answer a question when it's presented regardless of the age of the thread.

  9. #9
    Quote Originally Posted by michaellobry View Post

    .... SNIP ....

    So your money might be saved and you still have, for example 1000 dollar on your forex account. But can you withdraw it? If the broker doesn't have any more money and instead is in debt then you cannot get your money back.

    SNIP ....
    This is why regulated licensed brokers in major economic centers are to be preferred over some shady website operating from a sunny Mediterranean island.

    With a regulated broker client funds are segregated from the funds of the brokerage itself. In the event of a bankruptcy a court appointed trustee takes charge and after many months your funds are sent to you. Assuming of course you have filed the appropriate paperwork to prove you have funds on deposit and are requesting there payout.

    Think of it like buying a house. You give your real estate agent £50,000 for a deposit on a property. That money goes into the agent's trust account not into the account they use to pay the receptionist and office bills. If they did that, they would have committed breach of trust and go to jail.

    Only deal with a fully regulated broker.

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