Top 5 Brokers with Negative Balance Protection

Protect yourself through negative balance protection. These brokers will prevent your account from entering negative territory.

AvaTrade (AvaTrade.com) is an award winning online broker. Access a wide range of markets spanning Forex, crypto-currencies, shares, metals and more on competitive spreads.

  • Currency pairs: 60
  • Markets: Commodities, Forex, Gold and metals, Indices, Oil, Shares
  • Platforms: Copy trading, MetaTrader 4, MetaTrader 5
  • Regulators: Australia, BVI, Ireland, Japan, South Africa, UAE
  • Incorporated: 2006

$100
deposit

1:200
leverage

1.9 pips
EUR/USD

$100
deposit

1:30
leverage

1.3 pips
EUR/USD

$100
deposit

1:400
leverage

1.3 pips
EUR/USD

$100
deposit

1:400
leverage

1.3 pips
EUR/USD

Risk warning ?

FxPro (FxPro.com) is a global broker, winner of 60+ awards including "Best FX Provider" in the 2019, 2017 and 2016 Online Personal Wealth Awards.

  • Currency pairs: 70+
  • Markets: Commodities, Forex, Gold and metals, Indices, Oil, Shares
  • Platforms: Copy trading, cTrader, MetaTrader 4, MetaTrader 5
  • Regulators: Bahamas, CySEC, South Africa, UK
  • Incorporated: 2006

$500
deposit

1:500
leverage

1.6 pips
EUR/USD

$500
deposit

1:500
leverage

0.3 pips
EUR/USD

$500
deposit

1:500
leverage

1.4 pips
EUR/USD

$500
deposit

1:500
leverage

1.4 pips
EUR/USD

$500
deposit

1:500
leverage

1.2 pips
EUR/USD

Risk warning ?

FXPRIMUS (FXPrimus.com) is a regulated ECN broker with exposure to Forex and a wide range of asset classes. It prides itself in creating a safe and secure trading environment

  • Currency pairs: 43
  • Markets: Forex, Gold and metals, Indices, Oil, Shares
  • Platforms: Copy trading, MetaTrader 4, Mirror trading
  • Regulators: CySEC, South Africa, Vanuatu
  • Incorporated: 2009

$100
deposit

1:30
leverage

1.6 pips
EUR/USD

$500
deposit

1:30
leverage

0.3 pips
EUR/USD

$100
deposit

1:30
leverage

0.3 pips
EUR/USD

$500
deposit

1:1000
leverage

0.3 pips
EUR/USD

Risk warning ?

What is negative balance protection?

In the summer of 2018, the European Securities and Markets Authority (ESMA) required that EU-regulated CFD brokers provide retail investors with "negative balance protection". So what does negative balance protection (NBP) mean? We turned to ESMA's definition for specifics.

"Negative balance protection means firms must limit the retail client’s aggregate liability for all CFDs connected to a CFD trading account to the funds in that CFD trading account. This implies that a client can never lose more money than the funds specifically dedicated to CFD trading."

Funds held in a CFD trading account include cash as well as any unrealized net profits across open CFD positions. If you are unable or unwilling to meet a margin call, your broker will close your positions at their current market price. This is known as "close out" or "stop out".

On rare occasions, large market events can cause sudden changes in prices which prevent some of these automatic protections from being effective. Stop outs can also experience delays, particularly when markets are volatile. Leverage also has the potential to magnify losses. In the past, you would have been liable for the entirety of these losses, which may, in some cases, have exceeded your investment.

Negative balance protection means that your broker will ultimately cover your losses, should they exceed the funds in your CFD trading account. NBP is applied at the account level only across CFDs. If your account also holds shares or units in exchange traded funds, they will not be covered by ESMA's guidelines, unless your broker choses otherwise.

What brokers say about negative balance protection

Some brokers have applied the law to the letter, offering negative balance protection only to retail investors trading with their EU-regulated entities. However, some have gone above and beyond. We've reviewed how some leading brokers have implemented these protections.

eToro

As is required by law, eToro.com extends negative balance protection to CFD trading accounts held by retail investors. If you are a retail client, eToro ensure that you do not lose more money than what you have deposited into your account when you trade CFDs. Furthermore, if you are a French resident, eToro will ensure that you do not lose more money than you have deposited for each individual CFD trade. ESMA's regulations apply at the account-level.

FxPro

FxPro.com offers negative balance protection for all clients, regardless of their categorisation and jurisdiction. The company also provides a stop out level, which will cause trades to be closed when a certain margin level percentage is reached. The stop-out level will depend on the account type and jurisdiction under which you are registered. For more information, please refer to FxPro's Order Execution Policy.

AvaTrade

Likewise, AvaTrade.com provides negative balance protection for all clients, regardless of their categorisation and jurisdiction. This applies across all its entities, whether they are regulated in Europe, the British Virgin Islands, Australia, South Africa, Japan and Abu Dhabi.


FxPro

MT4 Fixed - Instant Execution

Trade 70+ currency pairs, spot indices, energies, metals and shares on fixed spreads with instant ... More

  • $500 deposit
  • 1:500 leverage ?
Risk warning ?

AvaTrade

MT4 Account

Trade 55 currency pairs on fixed spreads, plus CFDs on crypto-currencies, stocks, indices, bonds and... More

  • $100 deposit
  • 1:30 leverage ?
Risk warning ?

FPMarkets

Standard ECN Account [MT5]

Trade over 50 pairs of currencies as well as CFDs on metals, indices and commodities through MT5 ... More

  • $100 deposit
  • 1:500 leverage ?

AvaTrade

Professional Account

Trade 55 currency pairs on fixed spreads, plus CFDs on crypto-currencies, stocks, indices, bonds and... More

  • $100 deposit
  • 1:400 leverage ?
Risk warning ?