do forex brokers ever have to face bankruptcy? under what situation?
does the current ongoing financial market turmoil causes fx brokers to go bankrupt?
if a billionaire decides to hedge for the long-term using high interest-paying currencies + max leverage of 1:400 + enormous lots, will the fx broker go bankrupt?
if (IF) there are more winner than losers in the whole forex market, will the fx broker go bankrupt?
and lastly, do forex brokers themselves trade forex?
will the fx-men pls shed some light on this please?
thanks in advance.
Maybe this page in the babypips school will give you more insight
into the workings of a FX broker.
Choosing a Forex Broker | Pre-School: Forex Basics | Learn Forex Trading
Only badly run and badly managed business
goes bankrupt. In the case of FX brokerages,
undercapitablized plus being badly run could
put them in trouble.
Fact is, badly run business practicing lousy
business practices go bankrupt. And let’s
bring up realistic scenarios please. What
billionaire will have a billion dollar FX account
and will hedge using a trading platform to
influence the market? Assuming that
all of his trades go his way. Come on.
And badly run businesses need to fail.
They should go out of business but our
government has a lousy habit of always
bailing them out. Let them go out of
business.
thanks for replying but doesn’t really answer my question…
Great question. I also want to know this. What happens when (if) the broker where i have my account goes broke? Do i get my money back by some form of insurance or there isn’t such a thing?
yeah thats what i have in mind… will there b some sort of policy tht protects trader’s money in case the broker goes broke?