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ECN broker with negative balance protection?

  • Post #1
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  • First Post: May 19, 2018 6:42am May 19, 2018 6:42am
Does anyone know a reliable broker with a ECN account and negative balance protection under all circumstances?
Quoting tradur
Does anyone know a reliable broker with a ECN account and negative balance protection under all circumstances?
What for? You planning to blow up your account?
Literally not hard to do a google search on brokers that offer negative balance protection. And C-12 is right, if you use proper risk management, you'll never need it.
Quoting C-12
{quote} What for? You planning to blow up your account?
Well, dumbass. Under some circumstances like extreme volatility the automated stop out doesn't 'work'. Which means you can get in debt.

Think of 15 january 2015...
Quoting jhehe
Literally not hard to do a google search on brokers that offer negative balance protection. And C-12 is right, if you use proper risk management, you'll never need it.
Your "proper risk management" doesnt work when something happens like a eurcht fall. You could find yourself in debt. Did you know that?
Quoting tradur
{quote} Well, dumbass. Under some circumstances like extreme volatility the automated stop out doesn't 'work'. Which means you can get in debt. Think of 15 january 2015...
It's a pretty easy answer - don't trade currencies that are pegged at an unsustainable level that the central bank will eventually have to re-think its pegging.

In fact, if you trade a pegged currency you probably deserve to lose everything.
I remember a number of traders who lost 000's during that SNB shocker. I always thought at the time why would anyone be LONG on the EURCHF when the max it ever moved was circa 10 pips.

It was silly scalpers thinking they had easy money.

To answer your point though. All European brokers will have to offer zero balance protection under new legislation. So leverage will be reduced and your stop outs % will increase. So if you can hang on until later this year or early 2019 you will have dozens of brokers to pick from. Currently, there is only a handful that offers it ( quick google search).

BTW this NBP is not a good thing for brokers or traders. Brokers risk of losses increases as they have to cover your screw-ups, which will mean they have to claw it back from traders somehow.
Quoting londonboy
{quote} It's a pretty easy answer - don't trade currencies that are pegged at an unsustainable level that the central bank will eventually have to re-think its pegging. In fact, if you trade a pegged currency you probably deserve to lose everything. I remember a number of traders who lost 000's during that SNB shocker. I always thought at the time why would anyone be LONG on the EURCHF when the max it ever moved was circa 10 pips. It was silly scalpers thinking they had easy money. To answer your point though. All European brokers will have to offer...
what is silly about easy money?
if you don't do your maths, the maths will do you.
Quoting BubaYaga
{quote} what is silly about easy money?
Go ask the people who had BUY trades open on EURCHF

Ask them if the easy money they were making over many months was more than they lost in 30 minutes.
Would you call arbitrage "silly"?
Is hard money smart?
if you don't do your maths, the maths will do you.
Quoting BubaYaga
Would you call arbitrage "silly"? Is hard money smart?
Go read the T&C's of the majority of brokers about Arbitrage.

See how long you get away with it for. Most brokers have plug ins that look for those trying to do Arbing.
Quoting londonboy
{quote} It's a pretty easy answer - don't trade currencies that are pegged at an unsustainable level that the central bank will eventually have to re-think its pegging. In fact, if you trade a pegged currency you probably deserve to lose everything. I remember a number of traders who lost 000's during that SNB shocker. I always thought at the time why would anyone be LONG on the EURCHF when the max it ever moved was circa 10 pips. It was silly scalpers thinking they had easy money. To answer your point though. All European brokers will have to offer...
Thanks.

Its not only pegged currencies. If a disaster/major crisis/attack happens which are obviously unscheduled it could also go against your position.

Preservering your balance is the most important thing.

On google i found the only broker which provides ECN and NBP is dukascopy.
Quoting tradur
{quote} Thanks. Its not only pegged currencies. If a disaster/major crisis/attack happens which are obviously unscheduled it could also go against your position. Preservering your balance is the most important thing. On google i found the only broker which provides ECN and NBP is dukascopy.
There are others like FX Pro etc etc etc - do a search on here.

I wouldn't choose a new broker based on this though but it's up to you.
Quoting londonboy
{quote} Go read the T&C's of the majority of brokers about Arbitrage. See how long you get away with it for. Most brokers have plug ins that look for those trying to do Arbing.
*not talking about latency arbitrage.

I remember looking at the economic calendar that day. SNB rate decision, I believe they cut rates.
Don't recall seeing "SNB special announcement" or anything like that..

I remember spreads ballooning on all pairs. I thought there was something wrong with my broker feed.

People speculating on the rate decision may well have been long EURCHF.
Black Swans happen..
if you don't do your maths, the maths will do you.
Quoting tradur
{quote} Well, dumbass.
u calling dumbass to ppl when u joined in 2k14 and still asking for this shit.. LOL
Quoting BubaYaga
{quote} *not talking about latency arbitrage. I remember looking at the economic calendar that day. SNB rate decision, I believe they cut rates. Don't recall seeing "SNB special announcement" or anything like that.. I remember spreads ballooning on all pairs. I thought there was something wrong with my broker feed. People speculating on the rate decision may well have been long EURCHF. Black Swans happen..
Exactly these events happen - maybe once or twice in a lifetime - think SNB and before that Fukushima when JPY dropped like a stone.

I think basing your choice of broker on whether there is protection against an event that might happen a couple of times in your lifetime is a little crazy. If the original poster is that worried about a negative balance then that suggests he/she is using money that they cant afford to lose. I would suggest doing something less risky with it, like putting it in a piggy bank and leave Forex alone.
Quoting tradur
{quote} Your "proper risk management" doesnt work when something happens like a eurcht fall. You could find yourself in debt. Did you know that?
don't trade news
Quoting f0nteide
{quote} u calling dumbass to ppl when u joined in 2k14 and still asking for this shit.. LOL
Alot of brokers offer NBP, but only under normal trading conditions, alot of them use this as marketing tactic so they don't always tell the truth. I want to see reviews. En nu opkrassen
Dukascopy has negative balance protection, i got an email regarding of that.
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  • Post #19
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  • Last Post: May 29, 2018 7:56am May 29, 2018 7:56am
Quote
It's a pretty easy answer - don't trade currencies that are pegged at an unsustainable level that the central bank will eventually have to re-think its pegging.

In fact, if you trade a pegged currency you probably deserve to lose everything.
I remember a number of traders who lost 000's during that SNB shocker. I always thought at the time why would anyone be LONG on the EURCHF when the max it ever moved was circa 10 pips.

It was silly scalpers thinking they had easy money.

At the time it didnīt seem that crazy to implement a grid and make some money out of it.
Old ways dont open new doors
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