what happens if your broker goes bankrupt? | Forex Factory

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what happens if your broker goes bankrupt?

  • #1
  • First Post: Dec 14, 2010 9:29am Dec 14, 2010 9:29am
confused newbie here, saw a warning on the website of the broker i am thinking of going with, that in the event of the company going bankrupt you could lose all of the funds in your account as your money is not insured, this is a well known broker but still i'd like to know the worst possible scenarios that could happen in fx before i go live.
what would happen if you were in a highly leveraged trade when the company was declared bankrupt, could you end up being liable for the leveraged amount as well???? that would be a complete and utter disaster, maybe i'm confused here or worrying too much, going live jitters or whatever but really appreciate any info from anyone knowing anything about this, thanks.
  • #2
  • Dec 14, 2010 10:18am Dec 14, 2010 10:18am
i don't think it will happen with me..

life is gamble...but no stop to being alive....
when u face any prob like this say all is well ,forget bad happening & leave rest all upon god.. & start life newly.......

here i am giving a Sanskrit slok & its English meaning

|| त्यजन्तु बान्धवाः सर्वे निन्दन्तु गुरवो जनाः|
| तदापि परमानन्दो गोविन्दो मम जीवनं ||
Meaning:
let all my relatives abandon me, let the great people insult me, still I am in supreme bliss since my life is GOVINDA [GOD] alone.

don't go exact on the above lines but I'm trying to tell u that some problems are out of our control, so just leave it on Ur god, because you can't make it good,as its none of your business.

sorry bad english
Shri Ram
  • #3
  • Dec 14, 2010 10:28am Dec 14, 2010 10:28am
Quoting dattatreya
i don't think it will happen with me..

life is gamble...but no stop to being alive....
when u face any prob like this say all is well ,forget bad happening & leave rest all upon god.. & start life newly.......

here i am giving a Sanskrit slok & its English meaning

[color=darkorange][b]|| त्यजन्तु बान्धवाः सर्वे निन्दन्तु...
thanks a lot for replying to my post but this doesn't really answer my question..
  • #4
  • Dec 14, 2010 10:32am Dec 14, 2010 10:32am
Once i asked the same question http://www.forexfactory.com/showthread.php?t=255524 .
If it goes bankrupt say hello to money, all we can do is pick some good, reputable, regulated and well capitalized brokerage company that is less likely it's gonna bankrupt.
  • #5
  • Dec 14, 2010 10:55am Dec 14, 2010 10:55am
Quoting fx111
Once i asked the same question http://www.forexfactory.com/showthread.php?t=255524 .
If it goes bankrupt say hello to money, all we can do is pick some good, reputable, regulated and well capitalized brokerage company that is less likely it's gonna bankrupt.

Thanks i'll have a look at your thread
  • #6
  • Dec 14, 2010 10:35pm Dec 14, 2010 10:35pm
rl forex
Which Country? which broker?

FYI
http://www.forexfactory.com/showthread.php?t=255524
  • #7
  • Dec 15, 2010 8:41am Dec 15, 2010 8:41am
Your money is gone, the accounts aren't regulated, so you will become a creditor, and probably will get pennies on the dollar if anything. That is why you should use a big broker, and not those no name small ones.
  • #8
  • Dec 16, 2010 5:37am Dec 16, 2010 5:37am
Quoting kalparker
Your money is gone, the accounts aren't regulated, so you will become a creditor, and probably will get pennies on the dollar if anything. That is why you should use a big broker, and not those no name small ones.

But would this include money that you are leveraging, i.e say you were doing a long term trade using leverage and the company gets declared bankrupt while you are doing so, this one i am finding it hard to get a clear answer to.
  • #9
  • Last Post: Dec 16, 2010 5:38am Dec 16, 2010 5:38am
Quoting moksha
rl forex
Which Country? which broker?

FYI
http://www.forexfactory.com/showthread.php?t=255524
Hi, the broker is Oanda and i know they are pretty good and reputable but this is still an issue which worries me.
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