Negative balance experiences: what happened to you?
A gap through your protection can push an account below zero, and the broker's response depends on its rules. First-hand accounts are rare and valuable.
Share:
- the broker and the event
- how far below zero the account went
- whether the broker reset it, and how fast
The negative balance guide explains the rules by region.
Background: Negative balance protection, client money and compensation schemes
What happens to your money if a trade goes badly wrong, or if your broker goes bust? The protections that apply in the UK, EU, Australia and the US, and their limits.
Can I lose more than my deposit trading forex?
Retail clients of brokers regulated in the EU, UK and Australia have negative balance protection, which caps losses at the account balance. With brokers not bound by those rules, a large gap could leave you owing money.
Is my money protected if my broker goes bust?
It depends on the company's regulator. Client money should be segregated, and schemes such as the UK's FSCS (up to £85,000) or Cyprus's Investor Compensation Fund (up to €20,000) may cover eligible claims. US forex accounts aren't covered by SIPC.
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