Negative balance protection: has it ever applied to your account?
Negative balance protection means a retail client can't lose more than the money in their account. It's required for retail CFD accounts in the UK, the EU and Australia, but not everywhere, and a broker's group companies in other countries may not offer it.
Has a market gap ever pushed your account below zero? If so, tell us:
- which event caused it
- whether the broker reset the balance to zero automatically, or you had to ask
- which company in the broker's group your account was with at the time
First-hand accounts like this are rare but valuable, especially for members deciding between a broker's regulated entity and its offshore one. The negative balance protection guide explains the rules by region.
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Some background for members checking their own position, since the protection depends on which company holds the account.
- UK, EU and Australia: negative balance protection is required for retail clients trading CFDs, so a retail client can't lose more than the funds in their account.
- Professional clients: clients who opt up to professional status usually lose this protection, along with the leverage caps.
- Other regions: some brokers offer it voluntarily through their offshore companies, but it's a policy, not a legal requirement, so read the terms.
Real-world examples are rare because it takes a very large gap. The Swiss franc shock in January 2015 is the best-known case of client accounts going negative.
To check your own account, look at the client agreement for the company name and regulator, then the section on negative balances. The guide to negative balance protection and client money explains the rules by region.
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