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 2023
  • BlackBull Markets – Best STP Negative Balance Protection Broker 2023
  • FP Markets – Best Australia Negative Balance Protection Broker 2023
  • Pepperstone – Best MT5 Negative Protection Broker 2023
  • BDSwiss – Best EU Negative Balance Protection Broker 2023

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
Royal Financial Trading logo Royal Financial Trading
Min. Deposit: 50 US$
Max. Leverage: 1:500
Trading Platforms: MT4, MubasherTrade Pro, RJO, Trading Central
Regulation: ASIC, CySEC, CMA, FSA, VFSC
Royal Financial Trading Review
Spreadex Review Spreadex
Min. Deposit: 0 US$
Max. Leverage: 1:30
Trading Platforms: Spreadex platfrom
Regulation: FCA
Spreadex Review
TeraFX logo TeraFX
Min. Deposit: $100
Max. Leverage: 1:30
Trading Platforms: MT4, MT5
Regulation: FCA
TeraFX Review
Plus500 Broker review Plus500 – CFD Service
Min. Deposit: $100
Max. Leverage: 1:30 | 1:300
Trading Platforms: Plus500 Platform
Regulation: FCA, CySEC, ASIC, MAS, FSA
Plus500 – CFD Service Review
etoro_review eToro
Min. Deposit: $50
Max. Leverage: 1:30
Trading Platforms: eToro Platform
Regulation: CySEC, FCA, ASIC, FSAS
eToro Review
Global Prime logo Global Prime
Min. Deposit: US$200
Max. Leverage: 1:30 | 1:400
Trading Platforms: MT4, TradingView, Myfxbook, TraderEvolution
Regulation: ASIC, VFSC, FSA
Global Prime Review
Min. Deposit: US$0
Max. Leverage: Margin Trading
Trading Platforms: Robinhood Platform
Regulation: SEC, FINRA
Robinhood Review
Core Spreads Review Core Spreads
Min. Deposit: $0
Max. Leverage: 1:30
Trading Platforms: CoreTrader, CoreMT4
Regulation: FCA, ASIC
Core Spreads Review
ICM Capital Broker review ICM Capital
Min. Deposit: $200
Max. Leverage: 1:30 | 1:200
Trading Platforms: MT4
Regulation: FCA, FSC, FSA, ARIF, SCAB, QFC
ICM Capital Review
AxiTrader Broker review AxiTrader
Min. Deposit: 0 US$
Max. Leverage: 1:400
Trading Platforms: MT4
Regulation: ASIC, FCA
AxiTrader Review