Negative balance protection refers to broker commitment to prevent negative balance from occurring on client's trading account. Which one can we call as forex brokers with negative balance protection?
Following the Swiss National Bank removal of Euro peg in January 15th, 2015, many traders suffer from negative balance. Some brokers decided to forgive their clients debts, but some other sought for payments as they themselves lost a substantial amount of funds in the event later known as Black Thursday. Since then, traders started to realize the value of brokers with negative balance protection.
Leverage trading opens up the possibility for negative balance to occur, because traders could owe more than the amount that are available in his balances. Seen from this perspective, worries over negative balance on forex trading account makes sense.
What is negative balance protection?
Negative balance protection refers to broker's commitment to prevent negative balance from occurring on client's trading account either by implementing certain Margin Call level, preventing client balances from dropping below zero, or broker's commitment to pardon negative balance. Such clause can also reassure us that the broker has sufficient capital and proper handle on risk management. Because of that reason too, some brokers advertised themselves for having negative balance protection as additional advantage while we usually can find such clauses within the broker's terms and conditions.
See also: How Negative Balance Protection Works?
Which one can we call as forex brokers with negative balance protection?
Generally, forex brokers pardon negative balance; but without saying so explicitly, we have no guarantee over what they will do if it happend. Therefore, it is safer to assume that forex brokers with negative balance protection is the ones that has written that clause in their broker-client agreement. In light of that, here is a list of some brokers that has pledged negative balance protection for their clients.
Trading by telephone
Islamic accounts available
As a multi-asset online brokerage, ThinkMarkets present a wide range of trading assets starting from Forex to Precious Metals, Commodities, Indices, Shares, and Cryptocurrencies. The Australian-based broker is established in 2010 and has since opened additional headquarters in London and throughout Asia-Pacific, Middle East, North Africa, Europe, and South America.
Average FX spreads for traders opening an account in ThinkMarkets start from 1.2 pips for the standard account, while ThinkZero provides the best trading experience with 0.1 pips spread. Still, traders may need to consider that ThinkZero applies commission from $3.5 per side for every 1000,000 trading volumes.
As a global online brokerage, ThinkMarkets operates under various financial regulatory institutions. For example, ThinkMarkets Australia is managed by TF Global Markets (Aust) Limited and is licensed by the Australian Financial Services as well as the Australian Securities and Investment Commission (ASIC) with ABN: 69158361561. On the other hand, ThinkMarkets UK is registered under the Financial Conduct Authority (FCA) by the company name of TF Global Markets (UK) Limited (number: 09042646).
ThinkMarkets consistently try to improve their trading environments with various advanced products. Automatic trading fans are provided with free VPS Hosting, while passionate traders who'd like to experience beyond MetaQuote platforms can try ThinkMarkets' proprietary platform called ThinkTrader.
The trading platform is available on 3 different interfaces specifically designed for Desktop, Tablet, and Mobile displays. Furthermore, customized tools such as 80+ drawing tools and indicators for technical analysis accessible even through Mobile screens would certainly provide a brand new trading on-the-go experience.
As far as market updates go, trading in ThinkMarkets would be accompanied with news from FX Wire Pro that is known for its strict policy toward upholding objective journalism and delivering critical, trusted information in real-time. Information segments covered by FX Wire Pro include Economic Commentary, Technical-level Reports, Currency and Commodities, Central Bank Bulletins, Energies and metals, together with Event-driven Flashes.
For payment methods, ThinkMarkets offer the gateway via bank transfer, credit card (Visa and MasterCard), Skrill, Neteller, POLi internet banking, BPay, and Bitcoin wallet.
All in all, it is safe to say that for a company that started business since 2010, ThinkMarkets is an accomplished broker in terms of legal standing and innovation in trading technology. As an additional safety assurance for traders, this broker underlines its commitment to provide a $1 million insurance protection program which is made possible by ThinkMarkets' insurance policy with Lloyd’s of London that protects clients' funds for up to $1 million in the unlikely event of insolvency.
One of Australian top broker, ThinkMarkets provides sophisticated online trading facility with license from Australian Securities and Investments Commission (ASIC), thus client funds are held in segregated accounts. It was established in 2010 as a typical ECN/STP broker which facilitates trading on various financial instruments spanned from forex pairs to indices and commodities CFD. An account can be opened in ThinkMarkets with a minimum deposit of $250, and traders can access up to 1:500 leverage.
Aside of guaranteeing negative balance protection, ThinkMarkets also promises low latency and fast execution, regardless if you trade manually or with autotrading. It makes sense as ThinkMarkets server reportedly is in the same location with their liquidity privider's, so it shall give you substantial advantage. Additionally, the Melbourne-based forex broker offers free forex VPS for automated traders who deposited a minimum of $2,500 of funds.
Further informations can be accessed through ThinkMarkets website.
Variable and Fixed
Islamic accounts available
Ever since its establishment in 2006, FxPro has successfully expanded to serve retail and institutional clients in more than 170 countries. Their head office is in London, UK.
FxPro UK Limited is authorized and regulated by the FCA since 2010. Meanwhile, other subsidiaries such as FxPro Financial Services Limited is authorized and regulated by CySEC since 2007 and the FSCA since 2015. Because of that, traders do not need to worry again about their funds safety. As a strong proponent of transparency, it established the highest standards of safety for clients' funds, as the company chooses to keep the funds in major international banks, fully segregated from the company's funds.
They always try to provide transparent and ethical practices across the global trading industry. In 2018, 74.65% of market orders were executed at the requested price while 12.8% of the client's orders were executed with positive slippage. Also, only 1.4% of all instant orders received a requote with 0.72% of them receiving better price when executed.
The total number of trades in FxPro has increased from year to year. In 2018, the number of trades achieves 53.6 million. Based on trust from their clients, FxPro received awards as Most Trusted Forex Brand UK 2017 by Global Brands Magazine. Besides, they became the first broker to sponsor an F1 team in 2008. There are around 60 UK and International Awards which had been achieved by FxPro.
They are committed to create a dynamic environment that equips traders with all the necessary tools for their trading experience. Opening an account in FxPro grants access to more than 250 CFDs on 6 asset types, including forex, shares, spot indices, futures, spot metals, and spot energies. They want to provide their clients with access to top-tier liquidity and advanced trade execution with no dealing desk intervention. The average execution time is less than 11.06 millisecond with up to 7,000 orders executed per second. Those advantages enable traders to benefit from tight spreads and competitive pricing.
Furthermore, FxPro is recognized as an innovative broker. The company allows its clients to enjoy a wide range of trading platforms, such as MetaTrader 4, MetaTrader 5, cTrader, and FxPro Edge. Web-based versions and mobile applications are also available so that traders can access financial markets at any time and anywhere.
Traders can choose platforms according to their needs. Fans of MT4 is provided with instant execution and easy-to-use trading platform. In this account, leverage is up to 1:500 and spreads start from 1.6 pips without commissions.
If traders want to get experience with more modern technology, traders should choose FxPro MT5 Accounts. In this account, spreads start from 1.5 and leverage is up to 1:500 without commissions.
Another type of accounts is FxPro cTrader. It is suitable for traders who give priority to the speed of execution with the most restrictive spreads compared to other account types'. FxPro cTrader is a powerful trading platform offering the best available bid and ask prices, with orders filled in just milliseconds. The platform also provides Market Depth and trading analysis tools. In this account, spreads start only from 0.3 pips. But, traders have to pay commissions $45 per $1 million traded (upon opening and closing a position) in forex and metals.
The key difference between MetaTrader 4, MetaTrader 5, and cTrader lies in the range of the CFD products that are available. The MT4 platform gives traders a chance to open positions on all of the 6 asset classes, whereas the MT5 doesn't support shares, and cTrader doesn't support shares and futures.
Besides 3 types of platforms above, trading in FxPro also enables access to FxPro Edge. This platform offers clients a new way to trade the markets in the form of spreads betting.
Each broker has pros and cons, and FxPro is not an exception. Aside from the advantages as explained before, FxPro has a high minimum deposit. Also, there are not many types of payment and withdrawal methods available at FxPro. Some types of methods even require traders to pay fees. However, it is still important to note that clients can trade forex, shares, indices, metals, and energies, with limited risk account at no additional cost in Fxpro
Regardless of the advantages and disadvantages, FxPro can be traders' choice as one of the best brokers with sophisticated technology. The company is suitable for traders prepared to trade with funds starting from $500.
Authorised and regulated by CySEC and UK FCA, FxPro has been in the business of providing forex trading services since 2006. They are known for their relatively low spreads and good customer service. Add that with negative balance protection, and you will find that many traders moved to join FxPro due to these advantages.
To open an account with FxPro, trader will have to deposit a minimum of $500 in either USD, EUR, GBP, JPY, or CHF. Later, trader can improve their financials by trade in a number of assets either manually, with PAMM, or utilizing algotrading. They put the highlight on technology that they have even built a set of tools specifically to support mobile trading and in shape of extensions for browsers.
Further informations can be accessed through FxPro website.
Trading by telephone
Islamic accounts available
Pepperstone was founded in 2010 by a team of experienced traders with a shared commitment to improve the world of online trading. Based in Melbourne, Australia, they grew to become one of the largest forex brokers in the world. If traders want to find a broker that provides low spreads, fast execution, and award-winning support, then the answer is Pepperstone.
Pepperstone has a strong legality guarantee because it has been licensed by the Australian regulator ASIC and FCA. Traders' funds can be deposited in segregated accounts at top Australian banks, one of which is the National Australia Bank (NAB). Therefore, the safety of funds is not a concern if a trader chooses to open an account in Pepperstone .
They succeeded in collaborating with 23 top banks to bring Bid to investors instantly via optical fiber. This allows all orders to be executed 100 percent automatically with low latency up to 0.05 milliseconds, without dealing desk intervention and requotes, as well as with super low trading costs.
Trusted by over 73,000 traders around the world, Pepperstone processes an average of USD12.55 billion of trading volumes every day. Because of that, they have many awards such as:
- The Best Global Forex ECN Broker 2019 and Best Forex Trading Support-Europe
- Best Australian Broker and Best Trading Platform 2018 by Compareforexbrokers.com
- Best Forex ECN Broker, Best Forex Trading Support, and Best Forex Trading Conditions by UK Forex Awards 2018
With the many rewards gained, Pepperstone hopes to attract more and more traders from all over the world. The rising performance of Pepperstone is not only due to the super-tight spreads and fast execution that it provides, but also because many traders are interested in trading with deposits in currencies other than US Dollars.
For this reason, Pepperstone is one of the most market-responsive brokers because it is willing to accept deposits in 10 currencies, which include AUD, USD, EUR, CAD, GBP, CHF, JPY, NZD, SGD, and HKD.
Trading in Pepperstone would allow traders to choose between 11 trading platforms: MT4 for desktop, MT4 Mac, MT4 iPhone, MT4 Android, MT4 iPad/Tablet, MT5, WebTrader, cTrader WebTrader, cTrader cAlgo, and cTrader Mobile. The choice of trading platforms may seem confusing to novice traders, but actually, it is very useful because it has fast execution.
When trading forex, traders can enjoy raw spreads from 0.0 pips on Razor accounts, over 61 currency pairs, and commission-free account funding on a wide range of deposit options. In addition to currency pairs, Pepperstone provides many types of trading instruments, including CFDs for indices and shares, commodities, and cryptocurrencies.
Instruments in commodity trading are pretty much diversified. Not only metal, gold, and silver, but traders can also trade with soft commodities such as cotton, sugar, coffee, cocoa, and orange juice. Pepperstone also provides trading on energy (oil and gas).
There are two types of accounts provided by Pepperstone, namely Razor accounts, and Standard accounts. If you area beginner, it is recommended to choose a Standard account with an average EUR/USD spread of 1.0-1.3 pips and free commission.
Those with particular trading styles such as scalpers and algorithmic traders may enjoy the lower cost setup traditionally seen in a Razor account, with a commission from AUD7 round turn of 100k traded. The initial deposit starts at USD200 with a minimum lot of 0.01 (micro) and 1:500 leverage.
As a Pepperstone client, a trader can fund and withdraw with alternative methods including Visa, Mastercard, POLi internet banking, bank transfer, BPay, PayPal, Neteller, Skrill, and Union Pay.
If you are new to trading or looking to practice your trading strategies in a risk-free environment, you can create Demo Account in Pepperstone. But if you are an experienced trader or prefer to learn by doing, Pepperstone provides a Live Account that allows you to trade with live executions and pricing.
Traders can also follow and copy strategies from popular traders using third-party services while learning how to improve their trading abilities. Pepperstone has partnered with a range of social trading platforms that traders can choose from, such as Myfxbook, ZuluTrade, Mirror Trader, MetaTrader signals, and Duplitrade.
Known as one of Australia's top broker, Pepperstone offers negative balance protection along with razor-thin interbank spreads and STP/ECN processing. An account can be funded with a minimum amount of $200 either in AUD, USD, NZD, CHF, GBP, EUR, JPY, SGD, or HKD.
Pepperstone is regulated and licensed by ASIC and welcome all trading styles that are commonly used among traders, such as hedging, scalping, and expert advisor. Still, compared to ThinkMarkets and FxPro that offer leverage up to 1:500, Pepperstone can only give slightly lower leverage, that is up to 1:400.
Further informations can be accessed through Pepperstone website.
Variable and Fixed
DFSA (Dubai), F003511
Trading by telephone
ActivTrades is a globally esteemed CFD broker that was founded in 2001. After establishing in Switzerland, ActivTrades made strategic arrangements to move to London. From this prime location, it was able to meet the need of vast markets including Europe, Asia, and South America, and gained rapid global appeal. Since then, ActivTrades has continued to expand and now has additional offices in Milan, Sofia, and Nassau.
The company is authorized and regulated by the FCA and is a member of the Financial Services Compensation Scheme. Under FCA regulation, ActivTrades fully implements enhanced segregation of clients' money. The safety of funds will be guaranteed as ActivTrades ensure the funds up to 1 million Pound Sterling.
ActivTrades is known for its reliable customer support. Customer service is provided 24/5 by telephone or fax to the UK office or by email. An online form for inquiries is also available as well as Live Chat. Support is offered in 12 different languages.
Because of that, the company gets awards such as Best Online Trading Service by ADVFN International Financial Awards, Best Customer Support by Agence IAT Grand Prize Excellence, and Best Customer Service by DKI & Euro am Sonntag. Besides, ActivTrades is also crowned as Most Trusted Forex Broker by MENA Forex Show and Best Forex Broker by Le Fonti.
It provides more than 500 CFDs on Forex, indices, commodities, shares, and ETFs. Clients can trade currency pairs with tight spreads from 0.5 pips and maximum leverage of 1:30. ActivTrades ensures all clients' trades to be executed at the best available price and with no re-quotes.
This broker does not charge any commission on foreign exchange trading. Their execution is fully automated and void of any dealing desks, ensuring that there is no human intervention on clients' trades.
Trading with ActivTrades is a gateway to major global indices around the world, including Nasdaq, Dow Jones, Euronext, FTSE, and many more. Traders can trades indices with spreads from 0.23 points. For commodity CFD trading, spreads are presented as little as 0.005 points.
One of the most detailed features at ActivTrades is the separate outlines for each market. Forex, commodities, indices, and share has their overview, timetables, margin listings, and spread table.
After registering for an account in ActivTrades, clients can choose a platform from three types that are provided, including ActivTrader, MetaTrader 4, and MetaTrader 5. The company designed the ActivTrader platform to utilize the latest technology and advanced functionalities to create an immersive trading experience. All variants of platforms can be accessed by mobile, tablet, and desktop usage.
There are many tools offered for use on the trading platform, including SmartOrder, SmartLines, SamartCalculator, SmartTemplate, SmartForecast, SmartPattern, and Pivot Points Indicator. With these tools, ActiveTrades can help clients to have advanced trading speed, precise execution with no delay, and ease clients' identification in locating entry points for buy and sell orders.
Trading education becomes a priority in ActivTrades. There are many variants of education methods that traders can choose. Besides a weekly webinar and ongoing seminars, the company offered an updated economic calendar and consistent market analysis.
Video tutorials on all of the tools and platforms are available without the need to register for a trading account. Furthermore, the personal one-on-one online training scheme provides a comprehensive learning experience tailored to suit each traders' needs.
Deposit and withdrawal requests can all be done from the trader's area. They accept various payment options to fund including bank transfer, credit/debit card, Neteller, Skrill, PayPal, and Sofort.
From the review above, education and customer support are the main priorities in ActiveTrades. This broker is suitable for traders who prioritize these two aspects. The company also has an FCA regulation that strengthens its reputation as a reliable broker.
ActivTrades facilitates forex trading for both retail individual and institutional clients. Retail traders will never experience overdrawn in their ActivTrades accounts, as they pledge Losses cannot exceed your deposits. Additionally, client funds are insured up to 500,000 pounds, more than what the UK financial services guarantee via FSCS scheme.
Required starting capital in this broker is comparably lower than other brokers in this list at 100 pounds, although leverage is limited at 1:400. With that balance, traders can buy and sell many kinds of assets and enjoy the trading facility under UK FCA regulation. Beside of that, if you are interested to be ActivTrades institutional partner, there are some tempting offer stand.
Further information can be accessed through ActivTrades website.
For better comparison, here is the side-by-side observation of the four brokers above:
rated by 79 users
rated by 131 users
rated by 1367 users
rated by 632 users
|Office(s)||Australia, South Africa and United Kingdom||Bahamas, Cyprus, Monaco, United Arab Emirates and United Kingdom||Australia, China, Kenya, Ukraine and United States||Bahamas, Italy, Luxembourg and United Kingdom|
|Regulation|| ASIC 424700 |
FCA (UK), 629628
FSCA (South Africa), FSP No 49835
| CySEC 078/07 |
DFSA (Dubai), F003333
FCA (UK), 509956
FSCA (South Africa), 45052
|ASIC, 414530 |
Capital Markets Authority of Kenya, 128
DFSA (Dubai), F004356
|DFSA (Dubai), F003511 |
FCA (UK) 434413
Securities Commission of The Bahamas, 199667
|Minimum Position||0.01 lot||0.01 lot||0.01 lot||0.01 lot|
|Payment||Bitcoin, BPAY, Credit/debit cards, Ethereum, Neteller, PayPal, Skrill and Tether (USDT)||Credit/debit cards, Neteller, PayPal, Skrill, UnionPay and Wire transfer||Credit/debit cards, PayPal, UnionPay and Wire transfer||Credit/debit cards, Neteller, PayPal, Skrill, SOFORT and Wire transfer|
|Official Website||Visit ThinkMarkets||Visit FxPro||Visit Pepperstone||Visit ActivTrades|
|Forex Demo Account|
|US traders are welcome|
|Requires sending documents via postal mail|
|Overnight interest rates (swaps)|
|Trading by telephone|
|Interest rate on funds|
Trading Platforms and Complements
|Trading via API|
|One-Cancels-Other (OCO) orders|
|Gold & silver|
|Website Languages||Arabic, Chinese, Czech, English, German, Greek, Indonesian, Italian, Malay, Polish, Portuguese, Spanish, Thai, Vietnamese||Arabic, Chinese, Czech, English, French, German, Hindi, Hungarian, Indonesian, Italian, Japanese, Korean, Malay, Polish, Portuguese, Russian, Spanish, Thai, Urdu, Vietnamese||Chinese, English, Russian||Arabic, Bulgarian, Chinese, Dutch, English, French, German, Hungarian, Italian, Portuguese, Russian, Spanish|
|General Review||Read ThinkMarkets Review||Read FxPro Review||Read Pepperstone Review||Read ActivTrades Review|
|User Reviews|| |
TraderWhoDec 2 2021
As a new trader, ThinkMarkets provided a lot of useful educational materials. I would recommend this broker for other newbies looking for more experience and learning curves.
traderstalkerNov 23 2021
The fast and hassle-free withdrawal process amazed me. Highly recommend for all kinds of traders.
ZunigaDec 2 2021
Overall good broker. Maybe not the best, but they do their job quite professionally and honestly. I am satisfied with the cooperation and do not plan to change the broker.
MatisNov 25 2021
What I like the most about FxPro is EA trading. Great conditions for algorithmic trading systems without limits on trading strategies. Also, I am very satisfied with the different payment systems proposed by the broker.
Drew FabrizioAug 20 2020
I started with Pepperstone a couple of weeks ago. For the first time, everything seems fine, but it's just that their MT4 platform is really lagging during events. Also, their commissions are relatively expensive. It's not that they're not good, but their calculation with commissions and swaps really not my type.
Harley CadwellAug 20 2020
I place my withdrawal on Saturday, then on Monday, I got the money. It's a relatively fast process. Looking forward to another withdrawal this week. Not much but glad I got the profit.
Gil MatosDec 2 2021
ActivTrades is one of the best FX brokers. Trust me, trading here is UNBELIEVABLY sable compared to other brokers I've tried!
Kevin GiordanoDec 1 2021
I have been trading on the FOREX market for a long time and not long ago decided to change my broker. It was not enough for me what it offer me.
|Open Real Account||Open ThinkMarkets Real Account||Open FxPro Real Account||Open Pepperstone Real Account||Open ActivTrades Real Account|
Negative balance protection is an especially important character to be sought after for forex traders who utilized high leverage. In this sense, it is a good thing that the brokers mentioned above are not offering sky high leverages but more moderate ones. OANDA is also one of the forex brokers providing negative balance policy with no high leverage,
If you are a fan of autotrading and wary of the robots making you lose more funds than you have on hand, it will be good to consider joining the aforementioned brokers. Still, they are not simply forex brokers with negative balance protection; they come along with other terms and conditions that you may be hesitant to accept, so make sure to read carefully before agreeing to anything. After all, it is one of the most important aspects to check when choosing the best forex broker.