Brokers chasing you for negative account balance | Page 43 | Forex Factory

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Brokers with Negative Balance Protection 41 replies

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Brokers chasing you for negative account balance

  • #841
  • Oct 25, 2016 2:41pm Oct 25, 2016 2:41pm
Quoting cuchuflito
OANDA froze during the GBPUSD 700 pip meltdown...and reopend after half was recovered! The question is: how did they handle stops, people had set way before and above... 1 The original stop? (unlikely) 2 Way at the bottom?? (that would be brutal). 3 Back in the middle...? For many, that difference could have been either a: Margin Call, Negative Balance or just a heavy loss...
Do you have proofs of Oanda hunting your stops while freezing the GBP?
  • #842
  • Edited 9:20pm Oct 25, 2016 9:06pm | Edited 9:20pm
He never said they hunted stops ...

Quoting rcm5
I have received an email (they are harassing) from IG asking me to pay my negative balance from EUR/CHF event otherwise they will take me to a court. My complaint is still with FOS and wondering if they are allowed to do that?
Just tell them you're awaiting a decision from the FOS and keep a log/forward the emails to the FOS ... still it's all a risky game ... if FOS rules against you you will have to pay all ... whereas IG might be open to negotiation prior to a ruling
  • #843
  • Oct 26, 2016 2:55am Oct 26, 2016 2:55am
Brokers who are chasing you for your negative balance is completely wrong because they let it happen as margin call triggered in your account. Your broker should always inform you ahead of time about the margin call so that you can take an action.

This also gives a red warning to the traders who wanted to invest but are not sure of the negative balance protection thing. One should invest with a broker who offers negative balance protection. There are brokers like Pepperstone and Octafx has been offering negative balance protection. However, I am not 100% sure about Octafx because they have a lot of peculiarities.
  • #844
  • Oct 26, 2016 3:10pm Oct 26, 2016 3:10pm
Quoting ammy
Brokers who are chasing you for your negative balance is completely wrong because they let it happen as margin call triggered in your account. Your broker should always inform you ahead of time about the margin call so that you can take an action. This also gives a red warning to the traders who wanted to invest but are not sure of the negative balance protection thing. One should invest with a broker who offers negative balance protection. There are brokers like Pepperstone and Octafx has been offering negative balance protection. However,...
If you look back to my previous post, the Negative balance protection Pepperstone is offering is completely BS...My account went to a negative balance and they are still emailing me to payback the balance they believe I owe them! Don't trust to this Broker.
  • #845
  • Oct 27, 2016 1:39am Oct 27, 2016 1:39am
Pepperstone - on their website stands:

"*Losses may exceed your deposit amount. The Pepperstone MT4 and cTrader platforms have a built-in automatic stop-out system, however this does not guarantee the balance will not go into negative; trade execution depends on market liquidity and pricing."

I wonder if it's possible to have a 100 % negative balance protection when trading with leverage...
  • #846
  • Edited 3:23am Oct 27, 2016 2:08am | Edited 3:23am
Quoting osceiv2
Pepperstone - on their website stands: "*Losses may exceed your deposit amount. The Pepperstone MT4 and cTrader platforms have a built-in automatic stop-out system, however this does not guarantee the balance will not go into negative; trade execution depends on market liquidity and pricing." I wonder if it's possible to have a 100 % negative balance protection when trading with leverage...
Correct, but:
1. Why they are offering NBP while they can't guarantee it?! negative balance only occurs when market goes to extreme volatility in fraction of minute and trader may not be able to manage their account and need a robust system to intervene.
2. Why they leave a tiny addendum at the bottom of the page to be out of sight? They have to remove NBP completely instead of offering something that won't work at all! This is nothing than cheating people.

In my opinion, Pepperstone is fraudulent broker.

Yes, there are brokers with 100% NBP.
  • #847
  • Oct 27, 2016 10:41am Oct 27, 2016 10:41am
Can't comment on other brokers, but during the gbp thing the other week, I had a long trade loaded up with no stops (I know,I know) with Oanda.
It was a sub account with 5k in it and I lost it all except for 500 euros.(could have been worse)
I got margined at about 1.2230.(cable)
So if theyd just let it go, Id have owed a shit load.
Makes them a decent broker in my book.
Where price is now, it has been before, and will be again.
  • #848
  • Oct 27, 2016 11:04am Oct 27, 2016 11:04am
Quoting fmaher
{quote} Correct, but: 1. Why they are offering NBP while they can't guarantee it?! negative balance only occurs when market goes to extreme volatility in fraction of minute and trader may not be able to manage their account and need a robust system to intervene. 2. Why they leave a tiny addendum at the bottom of the page to be out of sight? They have to remove NBP completely instead of offering something that won't work at all! This is nothing than cheating people. In my opinion, Pepperstone is fraudulent broker. Yes, there are brokers with 100%...
The NBP is a misleading advertising to get you as client.Always read the fine print.

Now,let's talk real here.

If a broker passes the orders to LQ it is impossible to offer such thing as "Guaranteed stop loss"

When a broker mentions NBP,always read the fine print.They may talk about the stop out levels on MT4 & cTrader etc and not about real market moves.

These are the only 2 logical outcomes when a broker promises NBP

1.They mean some sort of stop out as I mentioned above but only when it is possible.In this case they mention that in fine prints
2.They are a market maker
  • #849
  • Oct 27, 2016 8:06pm Oct 27, 2016 8:06pm
Pepperstone don't offer any special negative balance protection - some people just see what they want to see. This 'protection' is standard across all brokers - it's called a margin call/forced stop out.

Only market makers actually clear negative balances as a matter of policy. Once I incurred a negative balance on my betting account at Vantage and my account manger was nice enough to clear it for me ... but he didn't have to ... this was a favour, not a matter of company policy. Trading with a good broker and having a good relationship with them is a step in the right direction.
  • #850
  • Oct 27, 2016 10:54pm Oct 27, 2016 10:54pm
Quoting Badem
Pepperstone don't offer any special negative balance protection - some people just see what they want to see. This 'protection' is standard across all brokers - it's called a margin call/forced stop out. Only market makers actually clear negative balances as a matter of policy. Once I incurred a negative balance on my betting account at Vantage and my account manger was nice enough to clear it for me ... but he didn't have to ... this was a favour, not a matter of company policy. Trading with a good broker and having a good relationship with them...
Â
Hi there
Â
I looked at Pepperstone. Nothing about Negative protection. Maybe they HAD before.
I read this on the site :
Forex is said to be "the fairest market on earth" by some because of its sheer size, and number of participants. No one player, not even the central bank of a particular country can completely control the market direction of a currencyÂ
good fun. The fairest 
Â
About the Market maker and how they did you "favour". Do you believe they did it from fairness and good heart? Oh boy. My heart melts.... what a great folks I'll send them a dollar.
Here's the deal: they trade against you. Your trade goes in their bucket. Not big market. Your Take profit will be executed exactly on set level, even when it's in a market gap. So it's good idea to keep a record, screenshot etc when that happens.
Now look at the orher side - you hit a SL or margin call during volatility, with gaps etc. How can they claim they are executing at market price?? If they are ripping you off at good times they must honor the SL at bad times. Simple.Â
So if a Market Maker trys to collect a negative balance - laugh at them. Let the courts decide.
And that's why your "good friendly " manager HAVE TO forgive any negative. He's not doing you favors....All your money are in their pockets anyway
Â
I'm happy if i helped someone 
Beware of robber banks (RB), bad advisors.
  • #851
  • Oct 31, 2016 5:54am Oct 31, 2016 5:54am
Quoting fmaher
{quote} If you look back to my previous post, the Negative balance protection Pepperstone is offering is completely BS...My account went to a negative balance and they are still emailing me to payback the balance they believe I owe them! Don't trust to this Broker.
I am sorry but i never faced this issue. However, you can try Finpro Trading!

Finpro Trading is another broker i look forward to because of their negative balance protection option.
  • #852
  • Nov 6, 2016 4:56pm Nov 6, 2016 4:56pm
Some folks in this thread are living in a fantasy land ... gaps and negative balances are a part of trading ... if you can't take the heat get the ____ out of the kitchen.
  • #853
  • Nov 6, 2016 5:59pm Nov 6, 2016 5:59pm
Quoting vinnytrades
Some folks in this thread are living in a fantasy land ... gaps and negative balances are a part of trading ... if you can't take the heat get the ____ out of the kitchen.
Depends on the situation.
For example the eurchf story is a little bit different.

Forex market is an OTC market, without a clearing house. Nobody knows what happens in the background.

Forex brokers are market makers, who quote price for you.
If they dont feel safe, they wont quote price for you, until they feel safe again.
That happened during the Swiss National Bank announcement in Jaunary of 2015.
However, people wanted to trade, they didnt provide prices for an hour, until they felt safe again.
They collected bid and ask volume for an hour (without offering real rates).

Some these brokers did very dirty business during that hour.
The others just acted with huge delay.
  • #854
  • Nov 7, 2016 3:36am Nov 7, 2016 3:36am
Quoting makesilence
{quote} Depends on the situation. For example the eurchf story is a little bit different. Forex market is an OTC market, without a clearing house. Nobody knows what happens in the background. Forex brokers are market makers, who quote price for you. If they dont feel safe, they wont quote price for you, until they feel safe again. That happened during the Swiss National Bank announcement in Jaunary of 2015. However, people wanted to trade, they didnt provide prices for an hour, until they felt safe again. They collected bid and ask volume for an...
And there are also brokers they were quoting prices and providing trades all the time during chf event, but later did the requoting in ... their own favour. Ding, dong!
  • #855
  • Nov 27, 2016 11:37pm Nov 27, 2016 11:37pm
Thing is, brokers were sending out warning emails and lowering available leverage months prior to the CHF thing
  • #856
  • Edited 11:21pm Dec 11, 2016 10:58pm | Edited 11:21pm
Subject: asked to cover negative balance in Dubai with broker company

Hello!
I stumbled here on thus after over 2 months of an incident happening that has ruined me. And I am lost on what to do.
I am trading in Dubai (United Arab Emirates) with a reputable company: IG.
On Oct after Illumina announced a price drop from 180 to 140, my account got wiped out (I had 50k approximately) and I am left with -130k negative balance. All figures are in USD.
It is devastating as I had never managed to save even so much money. I am asked to cover the negative balances. And have been asked to provide my personal bank statements and other details and if I can get a loan. So they can see what they can so to reach a conclusion.

My questions:
1) What are my rights in Dubai with this?
2) Can the company ask for my statements?
3) Shouldnt the company have done something to guide me on not reaching this kind of a situation.

I would really appreciate some help. My thought process has been paralyzed completely.
  • #857
  • Dec 14, 2016 10:25am Dec 14, 2016 10:25am
Quoting vinnytrades
Some folks in this thread are living in a fantasy land ... gaps and negative balances are a part of trading ... if you can't take the heat get the ____ out of the kitchen.
A bit harsh way to say it but exactly on point Negative balance can occur even with the most reputable brokers of them all. It is just the way this industry works and you should accept that risk or pull out and invest your hard-earned money somewhere else. In the end of the day the brokers should pay to their LPs for the losses generated by their clients. You, guys, didn’t think they would do it out of their own pocket, right?!
  • #858
  • Dec 14, 2016 10:37am Dec 14, 2016 10:37am
Quoting irohal
Subject: asked to cover negative balance in Dubai with broker company Hello! I stumbled here on thus after over 2 months of an incident happening that has ruined me. And I am lost on what to do. I am trading in Dubai (United Arab Emirates) with a reputable company: IG. On Oct after Illumina announced a price drop from 180 to 140, my account got wiped out (I had 50k approximately) and I am left with -130k negative balance. All figures are in USD. It is devastating as I had never managed to save even so much money. I am asked to cover the negative...
Jeez man.I feel for you.
I lost about 6k during the gbp thing recently.
Luckily it was a sub account and my margin got called (oanda).
I'm no legal expert, and know nothing about Dubai.
I live in France, so if it happened to me ,I would sit tight and do NOTHING until the law told me to do it..
But then this is a socialist country and tend to fall on the side of the ordinary joe when the shit hits the fan.
It may not feel like it, but you're probably small fry and theyre trying what they can.
Good luck dude.
Where price is now, it has been before, and will be again.
  • #859
  • Dec 14, 2016 1:23pm Dec 14, 2016 1:23pm
Can somebady explain me this? Why my account isnt close on my stoploss?
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  • #860
  • Jan 10, 2017 8:36pm Jan 10, 2017 8:36pm
It is almost 2 year anniversary since Swiss crash. So, did anybody ended up paying to the brokers?

Would be very interesting to know how the stories of brokers chasing traders ended up.
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