I am using ICMarkets and I am happy with them, except they do not have negative balance protection. I usually trade in high volatility markets like news events, national elections, and other major events. Most of the time, my balance falls into the negative, 3-5 times my original balance.
Recently, during the NFP release, gold dropped 1900 points against the USD. My account balance was $100, and I used full leverage. Suddenly, the news went against my position, and my balance became -$580. The worst part is that when your balance is negative, they won’t allow you to withdraw money from other trading accounts until you clear the negative balance.
Can anyone please suggest the best Forex broker with negative balance protection?
Yes, it true i blew my account several times. I do not feel, i have a problem with my strategy when i am correct about my position i make lot of money in one trade which cover previous 5 blew account money.
If you know any legitimate broker which provides Negative balance protection, please suggest.
It not a problem. it my strategy. Let me know which broker you use and do they provide negative balance protection.
All FCA-regulated brokers must, by law, provide negative balance protection.
All you need to do is open an account with any FCA-regulated one and make sure that your account is FCA-regulated.
You don’t need to be British or to live in the UK, to be protected by that rule.
And you don’t need to be British or to live in the UK, to use the UK’s financial ombudsman service, if you ever need to.
(There are many people in forums, including unfortunately in this one, who will tell you the exact opposite. These are not malicious people: they’re just ill-informed. All of them. You can very quickly and easily verify what I’m telling you for yourself, by checking out the appropriate websites for yourself. I see that some other members have previously told you this in other threads. Maybe they didn’t explain it clearly enough, but I suspect it’s mostly/partly because there’s so much misinformation in this forum, and so much prejudice and ignorance about brokers, that these situations inevitably confuse many people!).
I respectfully disagree, on that point. My opinion is that among retail traders, news-trading strategies and long-term profitability are mutually exclusive. There are reasons for that, too, of course.
Your strategy should take into account your account size. You aren’t managing your risk currently. Risk management should be the most important aspect of your overall strategy.
Mostly I trade futures, not CFDs, but I live in the UK anyway so if I need to trade spot/CFDs I use spreadbetting because it’s tax-free; sorry, not helpful to you, I know.
Hi @shanmugapradeep - I covered this in your other thread on the difference, yesterday I think.
Meanwhile, just think about trading in high volatility periods of markets. It’s like driving a car very fast - if you are on the right road you will get where you want to be very quickly. But if you’re lost and not sure where the bends are as well, you’re just going to be even more lost even more quickly - and maybe have a bad crash too along the way.
Some forex pairs have very low historic volatility, some of the lowest of all tradable markets I am sure. Think about trading some of the more pedestrian pairs, like AUD/NZD, EUR/CHF, EUR/GBP etc. You can always put your foot on the accelerator later when you’re doing well.
