Any thoughts on the pros and cons of opening a protected account ?
What exactly do you mean by “protected” account? Are you talking about a managed account?
protected a/c as advertised by a couple of companies on the net… they claim to be accounts bridging between demo n live accounts where they claim that they will take up the losses and let us keep the profits…I guess it is IFOREXDOTCOM…
iFOREX offers its traders a variety of accounts tailor made
to suit individuals needs.The Protected Account works as a funded demo account, which allows traders to:
>Open a trading account with as little as $100.
>Your deposit acts as a payment and allows you to trade up to 100 times that payment
>Enjoy an attractive spread for a large selection of currency pairs
> Make as many trades as you desire, 24 hours a day, using any currency pair.
>At the end of the two-week period, any positive balance is yours to keep.
> If there is a negative balance, iFOREX will have it covered.
I have not seen this before, on further reading into the website I found the
above webpage.
What they are saying is if you fund the account with $100 to $1000,
after 2 weeks whatever profit you gain + your intial account balance,
will be transfered to a normal account.
ie $500 (Start) + $50 profit = $550 transfered to another account.
BUT
If you should lose all the money in the account, you just lose your
initial deposit.
ie $500 (Start) - $1500 loss = $0
This is all explained on a pop-up from their webpage.
I presume there is no margin call, if you go below your initial
account balance you can leave the position open until the
end of 2 weeks or the trade turns around. (All trades are cancelled
though after 2 weeks)
May be worth a look in the new year.
[B][U]Questions.[/U][/B]
Max. amount can be made in 2 weeks off of $100, $200 etc?
Max. leverage?
Are the company good for the profits?
Or will you just lose your deposit anyway?
well … all i can do at the moment is to add a couple of questions to ur list … 
- Can anyone vouch for their credentials from our babypips community ?
- i dont understand their perspective here …say if i start with 100 dollars … and trade as much as possible with the leverage they provide … how would they cope up with the losses which i may make ? To put it the other way … How much losses can anyone incur with a 100 dollar deposit …with no margin calls … with the leverage they provide ??
How much losses can anyone incur with a 100 dollar deposit …with no margin calls … with the leverage they provide ??
Their losses are zero. This is a market maker*, so, being kind to
them, when your account balance reaches zero, or -ve they in
fact are your account balance better off.
*Search market maker or bucket shop for definition.
i have 2 questions…
if i start with 100 and they give me 10000, what is the leverage on the 10000? 100:1? 200:1? 400:1??
if i start with 100 and 2 week later my final profit is 50 dollars, 10050. do i only keep that 50 or 150 with the initial 100? from iforex offical website it looks like i only keep the profits…
thanks guys…
This will explain margin trading.
also
if i start with 100 and 2 week later my final profit is 50 dollars, 10050. do i only keep that 50 or 150 with the initial 100? from iforex offical website it looks like i only keep the profits…
If you make a profit of $50 during the 2 weeks, they transfer that
$50 + your $100 = $150 to a normal account.
I am not a member at iforex, I am just taking this from their site.
Not a bad idea when to try this protected account before going for a micro/ any other account … am planning of taking this up … will let you know how well i fare with that … cheers 
[QUOTE=daydreamer65;34006]This will explain margin trading.
also
yes, thanks for the reply…
for the first question i asked about the leverage. since i start with 100 i get 10000, what is the leverage they give me on the 10000? i can choose 100-400:1?
for the first question i asked about the leverage. since i start with 100 i get 10000, what is the leverage they give me on the 10000? i can choose 100-400:1?
I was hoping that you would read those links & work it out
for yourself.
But you need to invest $100, then the leverage as I see it is
100:1.
The $10 000 is your trade size, at no time do you ever get this
in your account.
With a $100 account size though you would normally not trade
that amount, probably just risk a fraction of that on a trade.
i thought if i invest 100 i will see 10000 in my account. and i trade that 10000 and the broker will give me “addition” leverage 100:1 or 200:1 etc. is that how it works? otherwise protected account is just an account with a margin call like another broker
i found out from them … they would not return your initial deposit of 100 dollars … they call it INSURANCE PREMIUM which you pay … and you could take all your profits back … you can keep positions of 10000 open for 2 weeks …without any margin call … you can trade unlimited number of times for the 100 dollars and they take up all your losses
Hi Mail2jennings, I am very new to the forex and like you learning everyday something new and what I have found about leverage is totally lookinto this before you trade live, I am using a demo account with fxcm which I like but that is is my own opinion, But I would recommend you have a look at this web site Forex Education, Forex Training, Currency Trading, Beginner’s Guide to Forex Trading, Learn Forex, Foreign Exchange - BabyPips.com at the school section as they have a section on leverage and it explains it really well, I have also learnt that I to was going to use a small amount at first and get the high leverage account but as I read this section it explained leverage well and now I am going to play the demo account for a few months save some more money up and I have learnt that lower the leverage you have the better the deal and risk you take(still a risk but the odds are lower) all the best and happy trading.
In that lesson …they wpuld have talked about account drawdown …early wash out of your account … but this protected account has a guarantee of staying in the trade for 2 weeks … and doesnt matter HOW MUCH losses you make … what i mean is if you ever make a loss …you can learn from it … and you have the seriousness of a live account … which you willnot find it in demo account ( can you beleive me …i made a profit of 90000 USD in one trade … risking 10000 dollars in a demo account … and to be honest …that was a wild guess for me on that trade) … i somehow feel that CARRY ON DEMO TRADE FOR A MONTH and work with PROTECTED ACCOUNT for another month …i/o jumping directly to a standard live account after you demo for a while …
Well, it sounds too good to be true (and you know how that saying goes), but give it a try and let us know how it works out.
I’d be very surprised if they let you keep that $90,000, though.
oh yes … am gonna give it a try … and that 90k was my results in another demo account … wish that was a real account … cheers … Have a wonderful new year …
i just asked fxcm, they said the protected account is just a normal account with fancy advertasing… that 100 dollars you start with can control 10000 in the market is leveraged money, not 10000 on your balance. if that’s true then there’s no point…fxcm has no -nagative balance policy anyways
i am still trying to make sure from iforex…
what if your profit is only 25 dollars? do you keep that 25 dollars and lose that 100 insurance premium?
FYI: Every legit Forex broker on the planet will have a “protected account” feature. Don’t get too excited; it’s their own acct they are protecting. Think about it, in real market conditions if you got whipped with a $9000 loss and only had $1000 cash in your margin acct, who would [have to] make up the difference?