Negative balance protection: do you know if your broker offers it?

Negative balance protection means you can't lose more than your deposit — your balance can't go below zero. It's required for retail clients in the UK, the EU and Australia, but a broker's offshore entities may not offer it.

Negative balance protection: do you know if your broker offers it? — risk-reward diagram
A risk-reward ratio of 1 to 2

Check your own situation and share:

  • which entity of the broker your account is with
  • whether the terms mention negative balance protection
  • whether you've ever actually needed it
Negative balance protection: do you know if your broker offers it? — candlestick anatomy diagram
The parts of a candlestick: wick, body, open and close

The negative balance protection guide explains the rules by region.

Comments

Log in to join the discussion. Comments follow the community guidelines.

Log in to comment

Loading comments…