Brokers that liquidate accounts at zero before negative balance occurs

[osoSdidi]

May be Oanda. Contact their support.

[oSonesTkrrosCg94]

No broker can assure that. If they say they do they're lieing.

Brokers are at the mercy of this market.

What happens if your account goes below zero during NFP or other major news spike ?

....you would get a phone call from the broker asking you to pay the difference, which might be sh!t lots of cash.

Read the very nice small print out of the broker before you open the account.

Scoobs.

[EsnnesboS0203]

I've chatted with the oanda service, here the discussion quote:

Grace: Thanks for choosing OANDA. How may I assist you?
Marian: hi
marian: can you ensure that a trading account with oanda won't ever have a negative balance, take flash crash for exmple or ny other huge difference
marian: ?
Grace: We have a margin closeout coverage that prevent the trader from losing more than you have deposited.
Marian: this was not my query
marian: can you guarante I have a negative balance when trading with oanda in any case
marian: ?
Marian: yes or no
marian: would you set the account? Yes or no?
Grace: You won't have a negative equilibrium by our margin policy
marian: Please answer my question properly or provide me a link
marian: Its a gap to have a margin coverage or uarantee that account will not have a negative equilibrium
Grace: http://fxtrade.oanda.com/help/policies/margin-rules
marian: my query isn't answered, take this link for instance, forex.com delivers a guarantee as much as 50k
marian: http://www.forex.com/uk/trading-handbook-trading.html#x10
marian: we provide Negative Balance protection and will charge your account to a zero balance if your account goes into negative equity as a result of a particular event. You are protected by this coverage up to 50,000 of their base currency of your account.
Grace: Just one moment please
marian: no problem
Grace: unfortunately we don't ensure that an account will never have a negative equilibrium
marian: okay thank you

[EsnnesboS0203]

No broker can assure that. If they state they do they're lieing.

Brokers are at the mercy of this market.

What happens when your account goes below zero during NFP or other major news spike ?

....you would find a phone call from the broker asking you to cover the difference, which might be sh!t loads of money.

Read the very nice small print out of the broker before you start the account.

Scoobs.

What's forex.com lying? Is the print? liquidation event?

[EsnnesboS0203]

Im just a little scared yet as I trade cfd, fut and forex with very high leverage, cfd's are held overnight so there could be gaps which could cause a negative balance.

[EsnnesboS0203]

I found this link, are they also lying? any fineprint?

I have a negative balance in my account, does that mean that I owe FXCM money?

One of the most significant concerns traders have about leverage is that a sizable loss could cause due money to your own broker. Not with FXCM.

Many Foreign Exchange traders utilize a lot of leverage, and thus run the risk of losing more money than they have in their account. If this happens, your account may have a negative balance, often called a debit balance. In cases like this, you will spend money on your broker, and the broker could call in collections agencies or engage in action to recover it is owed by the money.

FXCM does not think that is very fair. We operate with a No Debit Compensation Coverage. If your losses become big, our system will automatically liquidate all positions at the best available price. Typically, the system can get you out before your account would eventually become unfavorable. In the case where it maynot, FXCM will credit your account back to zero. You may never owe FXCM money because of trading losses.

Bottom line: It is FXCM#8217;s coverage to credit accounts to a zero balance when debit balances happen because of trading.

http://forexforums.dailyfx.com/other...ease-help.html

[oSonesTkrrosCg94]

So is forex.com lying? Is the print? liquidation event?

They aren't lieing as such.

However they will say Your account will never be less than zero....under normal market requirements.

Today, it's down to them and also what they have written in their print that decides what's ordinary market conditions.

An extreme example is when NFP news comes out, the market could tank manner and the broker is not able to close out your position to prevent a margin call.

That would be classed as NOT normal market conditions and you might well be liable for all loses till they manage to shut your positons out.

Scoobs.

[EsnnesboS0203]

They are not lieing as such.

However they'll say to you Your account will never be less than....under normal market requirements.

Now, it's down to them and also what they have written in their print which decides what's normal market conditions.

An extreme example would be when NFP news comes out, the market could tank either manner and the broker is not able to close your position out to prevent a margin call.

That would be classed as NOT normal market conditions and you could well be responsible for all loses until they manage...

Well, I believe I got the point, thank you!
However, I exchange for some time but really never considered this risk.

[oSonesTkrrosCg94]

I found this link, are they lying? any fineprint?

Http://forexforums.dailyfx.com/other...ease-help.html

They cant say.

What happens when their system for any reason cannot liquidate your rankings. At the end of the afternoon you've lost money.

Are FXCM saying in writing that they will cover all your wins into the market in such cases ?

I don't but hey try it and see what happens....

Scoobs.

[EsnnesboS0203]

They cant say that.

What happens if their system for any reason cannot liquidate your positions. At the end of the afternoon you've lost money.

Are FXCM stating in writing that they'll cover most of your wins into the market in such cases ?

I don't but hey try it and see what happens....

Scoobs.

TY so much for the time!