I wonder if the negative balance protection actually works.
Brokers with Negative Balance Protection 41 replies
ECN broker with negative balance protection? 20 replies
negative balance protection 15 replies
Negative Balance Protection 14 replies
How does FxPro offer 'negative balance protection' on big lots 43 replies
DislikedSeveral times. Absolute non-event. Some brokers reset your balance to zero automatically and instantly(Exness). Other brokers do it after a day or two and yet others, you have to approach support for the balance to be erased.Ignored
DislikedSeveral times. Absolute non-event. Some brokers reset your balance to zero automatically and instantly(Exness). Other brokers do it after a day or two and yet others, you have to approach support for the balance to be erased.Ignored
Disliked{quote} Thanks for the reply mate, do you think that the pepperstone ‘negative balance protection’ would work in some blackswan event. I heard that some largest brokers said their clients wouldn’t be in debt with them before the chf crash, but ended up chasing the clients money, so I’m just wondering. Appreciate your reply pal.Ignored
DislikedI went into negative balance recently too. What surprised me is that the broker erased the debt even if they weren't explicitly offering negative balance protection.. However I'd like to mention that the money owed was a few bucks only and I don't really know how brokers handle negative balance when going hundred thousands of dollars into debt.Ignored
Disliked{quote} I believe that if the debt could be officially registered under your country's regulations, they could maybe sell your debt to a local debt agency. But to be honest i have no idea, so im wondering too.Ignored
Disliked{quote} Not as easy as that. A registered debt can only come about after they have won their court case(in your country of residence). Until then it is a civil dispute which is essentially unenforceable - in other words, just saying something is a debt, does not make it so. I, for one, would have a lot of serious questions about their trading model that would have to come to light. If they are running an A and a B book, can you imagine them trying to claim from you when they were holding the other side of the trade AND were responsible for the trade...Ignored
Disliked{quote} I don't have specific knowledge of brokers chasing people - I suppose it is possible. That said, international litigation is very expensive and tedious so I can understand why most brokers just write off the loss. After all, if it is due to them not executing a stopout in time, they might even have a hard time proving their claim. And to do it for less that 500k would just be silly. It is worth mentioning that the threat of legal action is free...it is quite another prospect to start spending big bucks on a case, that even if you win, there...Ignored