Broker: FCA, Neg. Bal. Protection, 400:1, free trans., 0 comms | Forex Factory

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Broker: FCA, Neg. Bal. Protection, 400:1, free trans., 0 comms

  • #1
  • First Post: Apr 27, 2016 11:09am Apr 27, 2016 11:09am
Hello All,

I am looking for a broker that meets this criteria:

 

  1. FCA Regulated Broker (and ONLY FCA regulated, not just registered)
  2. Negative Balance Protection (you can't lose more than what you put in)
  3. 400:1 leverage (or higher)
  4. No Commissions
  5. Free Bank Transfers
  6. Truly tight spreads


I already have a broker that meets ALL this criteria with FxPro UK, but I would like to have more brokers options given each broker has pairs were they are stronger and have better spreads.

Any thoughts?

Thanks!

  • #2
  • Apr 27, 2016 11:25am Apr 27, 2016 11:25am
Quoting meyoik
Hello All, I am looking for a broker that meets this criteria: FCA Regulated Broker (and ONLY FCA regulated, not just registered) Negative Balance Protection (you can't lose more than what you put in) 400:1 leverage (or higher) No Commissions Free Bank Transfers Truly tight spreads I already have a broker that meets ALL this criteria with FxPro UK, but I would like to have more brokers options given each broker has pairs were they are stronger and have better spreads. Any thoughts? Thanks!
activtrades, cmc, admiral markets, fxopen & ads securities.

They are regulated by fca and others. - Or is what youre searching a broker ONLY regulated by fca and not others?
MY SITTING, NEVER MY THINKING!
  • #3
  • Edited 12:38pm Apr 27, 2016 12:01pm | Edited 12:38pm
Quoting merrygold
{quote} activtrades, cmc, admiral markets, fxopen & ads securities. They are regulated by fca and others. - Or is what youre searching a broker ONLY regulated by fca and not others?
Hi Merrygold,

FXOpen charges commissions and you have to pay for practically all transfer methods....

CMC doesn't seem to offer an MT4 platform......doesn't eliminate is as a candidate, but it obviously can't run EAs.

Activtrades is unfortunately very nosy when it comes to how much personal info they want to "harvest" from you, makes you wonder what they plan to do with all that .

I checked out Admiral Markets, ADS Securities, I couldn't find negative balance protection offered by any of them.

Would you know if they do offer it?
  • #4
  • Apr 27, 2016 1:15pm Apr 27, 2016 1:15pm
Quoting meyoik
Hello All, I am looking for a broker that meets this criteria: FCA Regulated Broker (and ONLY FCA regulated, not just registered) Negative Balance Protection (you can't lose more than what you put in) 400:1 leverage (or higher) No Commissions Free Bank Transfers Truly tight spreads I already have a broker that meets ALL this criteria with FxPro UK, but I would like to have more brokers options given each broker has pairs were they are stronger and have better spreads. Any thoughts? Thanks!
Hi Meyoik,

FXCM UK is regulated by the FCA and provides forex traders with up to $50,000 of negative balance protection*.

Our Mini accounts offer up to 400:1 leverage^ with tight all-inclusive spreads and no commissions. To see our live spreads, you can try a free Mini account demo. (Make sure to select Mini as your account type.)

We also have free bank transfer options including ACH, BACS, EFT and SEPA. Your forum profile mentions you live in Europe, so you will probably use SEPA. You can also deposit and withdraw funds for free using a debit card linked to your checking account.

______________


^ Mini accounts with equity less than 10k can have up to 400:1 forex leverage; between 10k and 20k up to 200:1. Mini accounts with equity greater than 20k are automatically converted to Standard accounts with No Dealing Desk (NDD) forex execution and a maximum of 100:1 leverage.


* Clients subject to the Negative Balance Policy who incur negative balances in excess of US $50,000 (determined by aggregating all of the client's negative balances across all accounts held by FXCM and any of its affiliate(s), incurred over a 24 hour period of time) will be responsible for and owe FXCM the value of the total negative balance above US $50,000, regardless of market conditions. Subject to certain exceptions, FXCM will waive the first US $50,000 of a client's total negative balance (determined by aggregating all of the client's negative balances across all accounts held by the FXCM group, incurred over a 24 hour period of time). This policy will apply to negative balances incurred during all market conditions, including exceptional market movements.

Specific Exceptions: Each client's master trading agreement will detail all of the specific exceptions to the Negative Balance Policy. Some of the key exceptions to this policy include the following: negative balances incurred by legal entities, omnibus relationships, white label relationships, Eligible Contract Participants, Eligible Counterparties and/or Professional Clients (as defined in the client's master trading agreement) and/or negative balances incurred on share CFD positions or products traded on an exchange.
  • #5
  • Apr 27, 2016 2:10pm Apr 27, 2016 2:10pm
Quoting Jason Rogers
{quote} Hi Meyoik, FXCM UK is regulated by the FCA and provides forex traders with up to $50,000 of negative balance protection*. Our Mini accounts offer up to 400:1 leverage^ with tight all-inclusive spreads and no commissions. To see our live spreads, you can try a free Mini account demo. (Make sure to select Mini as your account type.) We also have free bank transfer options including ACH, BACS, EFT and SEPA. Your forum profile mentions you live in Europe, so you will probably...
HI Jason,

Thanks for your response.

I had been looking at FXCM in the past, and did come across the limitations you point out with regards to the negative balance protection and it put me off a bit. Even though most people would think that 50K under is far from their reality, but if you look at what happened in all the CHF crosses last January, then you see how so many people (and Brokerage firms) that couldn't fathom they would ever be in that spot suddenly woke up to that reality. Thousands of people had a handful of 2-3K trades going on, and whaam!! They were 50, 60, 70k in a couple of hours. I'm sure a lot of the points in my criteria are met, but this one is key. I do appreciate your openness and transparency, you were very clear in pointing out the "small letters".

I'll keep you in my radar and check out your spreads in the meantime....who knows, maybe you guys take a page out of FxPro and make it a flat out full negative balance protection....and then we can talk for sure

Thanks!
  • #6
  • Apr 28, 2016 11:55am Apr 28, 2016 11:55am
fxopen.co.uk are FCA and do not charge for deposit/withdrawals if its from a UK bank acc.

fxopen.com.au charge for UK customers and so do fxopen.com
  • #7
  • Apr 28, 2016 3:41pm Apr 28, 2016 3:41pm
I think you would save some time by only researching UK Market Makers as they are the only brokers that can offer negative balance protection.
  • #8
  • Apr 28, 2016 3:51pm Apr 28, 2016 3:51pm
Quoting meyoik
I do appreciate your openness and transparency, you were very clear in pointing out the "small letters". I'll keep you in my radar and check out your spreads in the meantime.
It's my pleasure, Meyoik

Let me know if you have any further questions after trying that demo.
  • #9
  • Apr 28, 2016 4:18pm Apr 28, 2016 4:18pm
Quoting Jason Rogers
{quote} It's my pleasure, Meyoik Let me know if you have any further questions after trying that demo.
Will do, thanks Jason
  • #10
  • Apr 28, 2016 4:25pm Apr 28, 2016 4:25pm
Quoting mitch77
I think you would save some time by only researching UK Market Makers as they are the only brokers that can offer negative balance protection.
There is a lot of truth in what you are saying.
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Would that mean that any sort of negative balance protection would immediately mean that broker is a market maker?
  • #11
  • Edited 10:20am Apr 29, 2016 9:34am | Edited 10:20am
If you read the small print, FXPro is like any other broker when it comes to negative balance protection:

12.1 In the case of a Force Majeure Event the client shall accept any loss arising.

24.1 Fxpro shall, in its reasonable opinion, determine that a force majeure event occurred; under such circumstances the Firm shall take all reasonably steps in order to inform the Client.

24.2 A FME is as an event of circumstance, including but not limited to any natural, technological, political, governmental, social, economical (including without limitation to the suspension of a currency) or similar event or circumstance that occurred after a transaction in a financial instrument occurred and such event or circumstance has not been anticipated at the date of entering into the transaction........................ ...

24.3 If Fxpro determines that a FME occurred, without prejudice to any other rights of the client under the Client Agreement, the Firm may: ....................
- amend any of the content of the Client Agreement on the basis that it is impossible for Fxpro to comply with it.
  • #12
  • Edited 10:17am Apr 29, 2016 10:07am | Edited 10:17am
Quoting meyoik
{quote} There is a lot of truth in what you are saying. {image} {image} Would that mean that any sort of negative balance protection would immediately mean that broker is a market maker?
Not necessarily. I won't speak for other brokers, but FXCM UK's negative balance policy is available to Standard accounts and Active Trader accounts which use No Dealing Desk (NDD) forex execution. This policy will apply to negative balances incurred during all market conditions, including exceptional market movements. I discuss our negative balance policy in more detail in my earlier post including specific exceptions: http://www.forexfactory.com/showthre...60#post8896260

In addition to the NDD execution we provide for Standard and Active Trader accounts, FXCM UK also has a Mini account option using DD forex execution. The Mini account has a lower opening minimum of $50 compared to 2k for a Standard account. The Mini account also offers leverage of up to 400:1, while leverage on our NDD execution is capped at 100:1 for risk management purposes. For more info on our leverage options, please see my earlier post.
  • #13
  • Apr 29, 2016 11:13am Apr 29, 2016 11:13am
Quoting mitch77
If you read the small print, FXPro is like any other broker when it comes to negative balance protection: 12.1 In the case of a Force Majeure Event the client shall accept any loss arising. 24.1 Fxpro shall, in its reasonable opinion, determine that a force majeure event occurred; under such circumstances the Firm shall take all reasonably steps in order to inform the Client. 24.2 A FME is as an event of circumstance, including but not limited to any natural, technological, political, governmental, social, economical (including without limitation...

Thanks for this Mitch77

I wonder if the FxPro forum representative would like to comment on this, and perhaps expand a bit on their negative balance protection policy given that it does indeed look like they've left themselves plenty of openings.
  • #14
  • Apr 29, 2016 11:14am Apr 29, 2016 11:14am
Quoting Jason Rogers
{quote} Not necessarily. I won't speak for other brokers, but FXCM UK's negative balance policy is available to Standard accounts and Active Trader accounts which use No Dealing Desk (NDD) forex execution. This policy will apply to negative balances incurred during all market conditions, including exceptional market movements. I discuss our negative balance policy in more detail in my earlier post including specific exceptions: http://www.forexfactory.com/showthre...60#post8896260 In addition to the NDD execution we provide...
Thanks for this Jason. Perhaps FXCM is worth another look on this point
  • #15
  • Apr 29, 2016 11:20am Apr 29, 2016 11:20am
Another broker that apparently meets the initial criteria is OctaFX UK:

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Does anybody have experience with OctaFx UK ?
  • #16
  • Edited 5:43pm Apr 29, 2016 5:25pm | Edited 5:43pm
Quoting Jason Rogers
{quote} It's my pleasure, Meyoik Let me know if you have any further questions after trying that demo.
Hi Jason, as promised, I have started looking into FXCM...this caught my eye:

Attached Image (click to enlarge)
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If you want to make sure to p!ss off traders, you first tell them in HUGE LETTERS how low the costs and spreads are but don't use the same BIG LETTERS to correctly inform the people you want to build a trading relationship with, that this applies to only ONE account type (Standard not the Mini....which is the same one you are promoting with your trading contests btw); you LEAVE all that OUT and shove it into the bottom of the page with the small print (that I marked in the red square box).

Here you do inform them you will charge more via "a mark up", and then say nothing more about it!? This is exactly what p!sses traders off....vagueness when it is o-b-v-i-o-u-s more explanation is required than "...yes we'll charge you a mark up..... OK, moving on..."

That's no way to make a long lasting trade/business relationship Jason, would you agree?

Can you please explain exactly what are all the costs, fees, charges, mark ups, hidden fees, additional charges, surcharges, etc. related to trading with your mini accounts?

Negative balance protection....couldn't find much info on it on your site, perhaps I missed it. Could you please point me to the links where we can get information on Negative balance protection for mini and standard accounts?
  • #17
  • Edited 6:28pm Apr 29, 2016 6:11pm | Edited 6:28pm
Quoting meyoik
{quote} Hi Jason, as promised, I have started looking into FXCM...this caught my eye: {image} If you want to make sure to p!ss off traders, you first tell them in HUGE LETTERS how low the costs and spreads are but don't use the same BIG LETTERS to correctly inform the people you want to build a trading relationship with, that this applies to only ONE account type (Standard not the Mini....which is the same one you are promoting with your trading contests btw); you LEAVE all that OUT and shove it into the bottom of the page with the small print (that...
Hi Meyoik,

Transparency has always been at the core of everything we offer at FXCM. Have I not answered all of your questions thus far? (Unlike others you've asked.)

There are no hidden fees like you are suggesting. Our Mini accounts trade on all inclusive spreads and that is your only transaction cost. Our Standard accounts trade on raw FX spreads with a separate commission. FXCM doesn't add any markup to the best prices we receive from liquidity providers on our NDD model, since we make our money from the commission.

The disclaimer you asked about refers to accounts opened through an introducing broker. Most IBs add no markup to our NDD pricing, but some add a markup as compensation for some value-added service such as premium charting or trading signals. An introducing broker wanting to add such a markup to the spread would have to disclose this to their client as part of the account opening documentation, so the client can make an informed decision on whether they want to pay extra for the service provided.
  • #18
  • Apr 29, 2016 6:19pm Apr 29, 2016 6:19pm
Quoting meyoik
Negative balance protection....couldn't find much info on it on your site, perhaps I missed it. Could you please point me to the links where we can get information on Negative balance protection for mini and standard accounts?
Each client's master trading agreement provides detail on how our Negative Balance Policy applies to them including all of the specific exceptions. Some of the key exceptions to this policy include the following: negative balances incurred by legal entities, omnibus relationships, white label relationships, Eligible Contract Participants, Eligible Counterparties and/or Professional Clients (as defined in the client's master trading agreement) and/or negative balances incurred on share CFD positions or products traded on an exchange.

Clients subject to the Negative Balance Policy who incur negative balances in excess of US $50,000 (determined by aggregating all of the client's negative balances across all accounts held by FXCM and any of its affiliate(s), incurred over a 24 hour period of time) will be responsible for and owe FXCM the value of the total negative balance above US $50,000, regardless of market conditions. Subject to certain exceptions, FXCM will waive the first US $50,000 of a client's total negative balance (determined by aggregating all of the client's negative balances across all accounts held by the FXCM group, incurred over a 24 hour period of time). This policy will apply to negative balances incurred during all market conditions, including exceptional market movements.
  • #19
  • Apr 30, 2016 5:21am Apr 30, 2016 5:21am
Quoting Jason Rogers
{quote} Each client's master trading agreement provides detail on how our Negative Balance Policy applies to them including all of the specific exceptions. Some of the key exceptions to this policy include the following: negative balances incurred by legal entities, omnibus relationships, white label relationships, Eligible Contract Participants, Eligible Counterparties and/or Professional Clients (as defined in the client's master trading agreement) and/or negative balances incurred on share CFD positions or products...
laughing
people leave, but this thread will go on for ever
  • #20
  • May 1, 2016 2:56pm May 1, 2016 2:56pm
Quoting Jason Rogers
{quote} Each client's master trading agreement provides detail on how our Negative Balance Policy applies to them including all of the specific exceptions. Some of the key exceptions to this policy include the following: negative balances incurred by legal entities, omnibus relationships, white label relationships, Eligible Contract Participants, Eligible Counterparties and/or Professional Clients (as defined in the client's master trading agreement) and/or negative balances incurred on share CFD positions or products...
Thanks Jason.

I clicked your link, but it didn't take me to a page on your site that explains the details that you just posted about negative balance.

Why would they not be clearly shown in the FXCM site? Why would one need to dig so much to find info on the negative Balance protection policy FXCM offers for it's 2 main type of accounts, Mini and Standard?

Is there a link at all that takes me directly to the FXCM Negative Balance protection policy?
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