Disliked{quote} Thanks for the warning and I hear what you're saying, i would definitely prefer a broker with a no negative balance guarantee , do you know one with good spreads???? I've seen one advertised here I think its FXPRO or something they also have fixed spreads quite tight but not as tight but then maybe its worth a bit more on spread to be safer in the long term... I will look into that , thanks...Ignored
You could lose some or all...
Losses could exceed your deposits...
etc...
I have been eyeing a broker called FX Primus for a while now to try them out however I have held back because of where they are located (I prefer UK, NZ, Australia etc...) FX Primus is regulated by CySEC in Cyprus if that makes anyone feel better. What drew me to look at them is they do have some great spreads and this note in their risk warning... Bolded items from their site. I underlined the item that really caught my eye. Yes I understand I could risk $100 on a trade but the Swiss Bank does their hanky panky and boom my SL and margin calls are missed and my whole $1000 account is gone. But at least I shouldn't end up oweing them another $1000 or worse.
Forex Trading involves significant risk to your invested capital
• Trading in financial instruments may result in losses as well as profits. Trading in leveraged instruments can result in losses greater than the initial invested capital.
• Investing in leveraged products carries a high degree of risk. FxPrimus Europe Ltd offers protective measures to manage risk effectively, but it is possible to lose more money than invested in each trade. However you can never lose more than your total balance.
• Trading may cause the loss of the capital invested.
Many brokers will state they protect you from going negative with their automated margin stop out (tough to find brokers that will guarantee SL unless they are MM). That however as we know after Black Thursday doesn't work when the market is moving that far and that fast and when there is no liquity to fill any orders. If they can't fill your margin call order because there is no opposing order sitting there... guess what that means.
Any I am off topic for the thread so I appologize please just make sure you do your due dilligence and suffer through reading all the risk warnings and their T&C's etc... (even the legal mumbo jumbo).
Today's zone = Tomorrow's opportunity!