Negative Balance Protection Forex Brokers

  1. What is Negative Balance Protection?
  2. Best Negative Balance Protection Brokers
  3. How long can you have Negative Balance Protection?
  4. Who are US Futures Brokers that offer Negative Balance Protection?
  5. Negative Balance Protection Brokers List

What is Negative Balance Protection Broker?

Negative Balance Protection Brokers provide a risk management tool that ensures that traders’ balance will not go negative, means the trader will not lose more than the balance of the accounts, even if the market moves quickly against their trades, since trades will be closed automatically by the system.

  • In most cases negative balance protection is not provided by the broker, apart from few exceptions, but rather by the regulatory requirements broker is licensed with.
💰 Trading Conditions / SpreadsStandard as Broker offering
📈 LeverageYes
📉 Positions Sell and Buy

Negative Balance Protection Platform

It is a common fact that market prices in the Forex trading industry change frequently and rapidly and high volatility is present. Hence it is important to choose the right broker with a trading platform that is regulated by a reputable authority and provides negative balance protection. 

Here are some important notes to consider before deciding on the broker:

  • Negative Balance Protection is one of the tools to protect traders from losing funds which prevents from losing more than a trader has on its account.
  • Negative balance protection is a standard feature and a guarantee offered to traders by regulated brokers at no additional cost simply because most of the brokers are required to provide it due to local Forex trading regulations in their jurisdictions.
  • Negative Balance Protection is mainly offered by regulated brokers in Europe, Australia, and UK as a regulatory requirement affective in those jurisdictions to protect clients
  • Traders can definitely benefit from choosing a broker with Negative Balance Protection as it allows to manage risks, provides additional protection when the market is highly volatile, and saves traders from having debts with their broker.
  • Negative balance protection covers only retail trades (professional traders are not protected).
  • There are different ways to protect traders from losing the investment so it is important to applu risk management, as well Brokers typically offer margin call, stop-loss, and stop-out.
Negative Balance Protection AdvantageNegative Balance Protection Disadvantage
Protect funds from going negativeNot Every Jurisdiction Provides Negative Balance Protection
Helps Manage Risks
Added Protection against Volatility

Top 5 Best Negative Balance Protection Brokers

Below we made a list of Regulated Forex Brokers offering Negative Balance Protection to the traders also we choose those Best Brokers that offer good conditions overall. In fact, most regulated brokers offer negative balance protection, yet we urge to research prospective firms carefully to prevent yourself from unnecessary financial risk exposure:

  • HFM – Best Overall Negative Protection Broker 2024
  • BlackBull Markets – Best STP Negative Balance Protection Broker 2024
  • FP Markets – Best Australia Negative Balance Protection Broker 2024
  • Eightcap – Best MT5 Negative Protection Broker 2024
  • BDSwiss – Best EU Negative Balance Protection Broker 2024

How long can you have Negative Balance Protection?

Negative Balance Protection is not limited in time, traders are able to benefit from it all the time their accounts are active, since is rather a condition than the offering.

Who are US Futures Brokers that offer Negative Balance Protection?

US brokers do not usually use Negative Balance Protection as a term, but every US-regulated broker has a margin call, which means the position is automatically closed once the margin limit on the account is reached, in other words, the account can’t go negative.

Does MT4 Have Negative Balance Protection?

Yes, Negative Balance Protection is a plugin in MetaTrader4 platform protecting traders from situations where traders’ balances go below zero, however is worth to check broker conditions too.

List of Forex Platforms with Negative Balance Protection

This is the full list of regulated forex brokers that guarantee Negative Balance Protection and are recommended by our experts:

Broker Detail
HFM Logo HFM
Min. Deposit: 0 US$
Max. Leverage: 1:2000
Trading Platforms: MT4, MT5, HFM Trading App
Regulation: CySEC, FCA, DFSA, FSCA, FSA, CMA
1
HFM Review
BlackBull Markets logo BlackBull Markets
Min. Deposit: 0 US$
Max. Leverage: 1:500
Trading Platforms: MT4, MT5, cTrader, BlackBull Trade, Trading View
Regulation: FMA, FSA
2
BlackBull Markets Review
FPM logo FP Markets
Min. Deposit: 100 US$
Max. Leverage: 1:30
Trading Platforms: IRESS, MT4, MT5, cTrader
Regulation: ASIC, CySEC, St. Vincent and the Grenadines, FSP, CMA
3
FP Markets Review
Eightcap
Min. Deposit: 100 US$
Max. Leverage: 1:500
Trading Platforms: MT4, MT5, TradingView
Regulation: ASIC, SCB, CySEC, FCA
4
Eightcap Review
BDSwiss Review BDSwiss
Min. Deposit: 10 US$
Max. Leverage: 1:400 | 1:2000
Trading Platforms: MT4, MT5, BDSwiss Webtrader, and BDSwiss Mobile App
Regulation: FSC, FSA, FSCA, MISA
5
BDSwiss Review
GO Markets
Min. Deposit: 0 US$
Max. Leverage: 1:30, 1:500
Trading Platforms: MT4, MT5, cTrader, WebTrader
Regulation: ASIC, CySEC, FSC, FSA
GO Markets Review
Errante Review Logo Errante
Min. Deposit: $€50
Max. Leverage: 1:30 | 1:500
Trading Platforms: MT4, MT5, cTrader
Regulation: CySEC, FSA
Errante Review
Pepperstone Review Pepperstone
Min. Deposit: 200 US$
Max. Leverage: 1:30 to 1:400
Trading Platforms: MT4, MT5, cTrader, TradingView
Regulation: ASIC, FCA, DFSA, SCB, CMA, CySEC, BaFIN
Pepperstone Review
KCM Trade Review KCM Trade
Min. Deposit: 500 US$
Max. Leverage: 1:400
Trading Platforms: MT4, MT5, KCM Trade WebTrader
Regulation: ASIC, FSA
KCM Trade Review
FXCC Review FXCC
Min. Deposit: No minimum deposit
Max. Leverage: 1:30 | 1:500
Trading Platforms: MT4
Regulation: CySEC, SVG FSA
FXCC Review