Hello, just wanted to post a discussion I had with an Oanda representative today on their live chat. First just some brief background.
I've been demo trading for just over a month. So far it's going exactly to plan, and if I continue to be successful in demo trading for another 2 months, then I'm going to go live. Although that's still a couple of months away, I've already started looking at potential brokers.
Now although I demo trade with fxpro, I was considering a switch to Oanda because:
1. You can trade custom lot sizes
2. I read somewhere that they have negative balance protection
I wanted to check out this second point. Here is the discussion I had.
Me: I just wanted to ask you about your negative account balance policy. Is it possible to lose more money than I put into the account?
Oanda: We do not allow negative balance.
Me: Okay, you have my e-mail address. Can you send me some sort of documentation that confirms this please?
Oanda. If in a rare case where the drastic price movement (precious metals in general) that causes a negative balance, client will need to pay the difference.
Oanda: Unfortunately we do not have any official documents for this.
Me: Okay so you are saying that in a very rare case it IS possible for me to owe money to the broker?
Oanda: Yes.
Oanda: But since we have been in business for 10 years, this is very rare.
That convo has made me a bit weary since initially I was told they do NOT allow negative account balances but then told it can happen. Was the person I was speaking to just not aware of their policy or what? Anyway, if you guys do know of any brokers that are regulated, have negative balance protection and preferably offer custom lots, then please let me know.
I've been demo trading for just over a month. So far it's going exactly to plan, and if I continue to be successful in demo trading for another 2 months, then I'm going to go live. Although that's still a couple of months away, I've already started looking at potential brokers.
Now although I demo trade with fxpro, I was considering a switch to Oanda because:
1. You can trade custom lot sizes
2. I read somewhere that they have negative balance protection
I wanted to check out this second point. Here is the discussion I had.
Me: I just wanted to ask you about your negative account balance policy. Is it possible to lose more money than I put into the account?
Oanda: We do not allow negative balance.
Me: Okay, you have my e-mail address. Can you send me some sort of documentation that confirms this please?
Oanda. If in a rare case where the drastic price movement (precious metals in general) that causes a negative balance, client will need to pay the difference.
Oanda: Unfortunately we do not have any official documents for this.
Me: Okay so you are saying that in a very rare case it IS possible for me to owe money to the broker?
Oanda: Yes.
Oanda: But since we have been in business for 10 years, this is very rare.
That convo has made me a bit weary since initially I was told they do NOT allow negative account balances but then told it can happen. Was the person I was speaking to just not aware of their policy or what? Anyway, if you guys do know of any brokers that are regulated, have negative balance protection and preferably offer custom lots, then please let me know.