Yesterday, it turned out that the most important thing in forex is to trade with a broker that has a Negative Balance Protection. This way, you do not owe the broker money in case you have an account with a negative balance.
I think this is somenthing extremely important. Why? Because I'm convinced that in some cases at some brokers the accounts have a negative balance of -100k or more.
Which Brokers offers such a protection?
I know two Brokers:
- Oanda
- FXPro
Statement from Oanda:
In the wake of this unprecedented market event, OANDA demonstrated its ongoing commitment to doing right by its clients. Despite suffering losses and vanishing liquidity in the institutional hedging market, OANDA remained true to its 14-year legacy of transparency, integrity and fairness to our clients. OANDA did not re-quote or amend any CHF cross client trades. We even took the further step of forgiving all negative client balances that were caused when clients could not close out their positions fast enough (where permitted by regulations).
Statement from FXPro:
All negative balance accounts which currently remain on the books of the broker are in the process of being corrected, as the company re-commits in its announcement to negative balance protection as outlined in the firm’s terms and conditions.
“While the company has been affected by the events of what is now being called Black Thursday, FxPro remains fully operational and solidly capitalised, as ever. It is business as usual: deposits, withdrawals and the entering of positions continue as on any other trading day.
- See more at: http://forexmagnates.com/fxpro-remai....gQL3L36X.dpuf
I think this is somenthing extremely important. Why? Because I'm convinced that in some cases at some brokers the accounts have a negative balance of -100k or more.
Which Brokers offers such a protection?
I know two Brokers:
- Oanda
- FXPro
Statement from Oanda:
In the wake of this unprecedented market event, OANDA demonstrated its ongoing commitment to doing right by its clients. Despite suffering losses and vanishing liquidity in the institutional hedging market, OANDA remained true to its 14-year legacy of transparency, integrity and fairness to our clients. OANDA did not re-quote or amend any CHF cross client trades. We even took the further step of forgiving all negative client balances that were caused when clients could not close out their positions fast enough (where permitted by regulations).
Statement from FXPro:
All negative balance accounts which currently remain on the books of the broker are in the process of being corrected, as the company re-commits in its announcement to negative balance protection as outlined in the firm’s terms and conditions.
“While the company has been affected by the events of what is now being called Black Thursday, FxPro remains fully operational and solidly capitalised, as ever. It is business as usual: deposits, withdrawals and the entering of positions continue as on any other trading day.
- See more at: http://forexmagnates.com/fxpro-remai....gQL3L36X.dpuf
Forex is a losers game.