FBS and TICKMILLSEYCHELLES NEGATIVE BALANCE PROTECTION

tradejoker

Recruit
Messages
1
Hello, first of all I am new to forex and trying to understand risks. I heard that FBS and Tickmill offers negative balance protection, I asked them and they told me that I will never lose more than my initial deposit, anyway I am not fully satisfied with their answers so I am asking here..

I am using an EA that trades on EURUSD, USDJPY, XAUUSD DE30 AND SPX500, my questions are:

1 - Should I stay away from one of these pairs or indexes for being dangerous for its own nature?

2 - do Tickmill and FBS really offer REAL negative balance protection as they state? In Tickmill site I see that they offer negative balance protection BUT I also see a warning saying that I can lose more than my account balance so I am very worried.

3 - I copied the settings of EA developer and using same leverage like 1:500, will this lead me to catastrophic chances of loss?

4 - IF i start trading with an account made in name of my company instead of a personal account in my own name as a person, will this protect my house and savings better?

Thanks to everybody that could help me to understand IF trading forex is safe enough for me and IF these brokers offers real negative balance protection..
 

Maria LMFX

Company Representative
Messages
24
Hello tradejoker,

First of all, welcome to the Forex world.
My very first advice would be to test your strategy on a Demo account and to make sure that you gained enough knowledge and experience.
Now to your questions:
1. The currency pairs and the indices mentioned are quite popular in the Forex world and you should expect a lot of moment on the markets. Their spreads shouldn't be unusual and I wouldn't call them dangerous. But always keep in mind that trading itself has some risks.
2. Most Brokers nowadays offer Negative Balance Protection which is basically what you explained. You cannot lose more than you deposited. Your account will be Stopped Out which means once you lost a certain amount of your investment, your trades will start to close starting from the most unprofitable one. If you are still worried maybe you should contact a representative and ask them about that very warning you saw.
3. I'm afraid I couldn't say if this leverage is going to have good or bad results. It really depends on your trading strategy, your patience and your knowledge. It's essential to test this on a Demo account first. Most Brokers give you the opportunity to choose the leverage and the amount on your Demo account so you can always set a leverage of 1:500 on your Demo and test out your strategy.
4. If you choose a decent Broker, you wouldn't need any kind of protection of your property because they shouldn't have any interest in your house, etc.

Make sure to watch some video tutorials or read some articles, test everything on a Demo first and make sure to choose a decent Broker.
Wish you profitable trading!
 
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