Top Negative Balance Protection Brokers for 2020

We found 10 online brokers that are appropriate for Trading Negative Balance Protection.

Best Negative Balance Protection Brokers Guide

Negative Balance Protection

Many of you, who are new to Forex trading, may not be aware of the term 'Negative Balance Protection.' Negative Balance Protection is a protection policy designed to help you not to lose beyond your deposited funds. Without NDD protection you could end up owing your broker more than your deposited brokerage funds.

Historically similar trader protection schemes were introduction but they failed to fully protect traders in fast moving markets. During unexpected movements of the market it was realized more safeguards were needed as current processes were not able to stop losses. Hence, Negative Balance Protection was introduced.

History of Negative Balance Protection

In 2011 the world saw a major Swiss franc crisis. It was initiated after the Swiss National Bank surprisingly stopped holding the Swiss franc against the Euro at a fixed exchange rate.

This made the currency stronger against EUR and as an aftermath many traders found themselves in negative balances. The brokers started to ask traders to deposit more funds. At this time there was no policy of Negative Balance Protection, hence traders started losing money in huge amounts.

Understanding Negative Balance Protection

Suppose you have deposited $1,000 in your account with a broker and get a share having the leverage of 5:1. This increases your position to $5,000 (1000 x 5 = 5000). Now, unexpectedly market turbulence happens leading to a drop of 7 percent a share and you lose 35 percent as you have implemented 5:1 leverage feature. The loss is $1,750. Your initial deposit was $1,000. You made a loss of $1,750. So, you stand at a loss of $750, below your balance.

In such a case if you had the Negative Balance Protection, you suffer loss of just $1,000 and not more than this amount as your loss cannot cross your deposit. So, it is suggested to opt for a broker who provides Negative Balance Protection.

Financial Conduct Authority and Negative balance protection

United Kingdom's financial regulator FCA has asked all the firms under its regulation to meet the Negative Balance Protection or at the very least cover a certain degree of potential exposure risk occurred by investing traders.

Cyprus Securities and Exchange Commission and Negative Balance Protection

The CySEC has clarified that such protection could be instituted per account basis. This means funds from other accounts can be used to cover the negative balance if more than one account is opened at the same broker but with different leveraged positions.

Negative Balance Protection brokers listed All the brokers listed in this article have trading accounts that come with Negative Balance Protection. With negative balance protection your account balance cannot go beyond zero. This means there will be no loss beyond the deposited amount.

We've collected thousands of datapoints and written a guide to help you find the best Negative Balance Protection Brokers for you. We hope this guide helps you find a reputable broker that matches what you need. We list the what we think are the best negative balance protection brokers below. You can go straight to the broker list here.

Reputable Negative Balance Protection Brokers Checklist

There are a number of important factors to consider when picking an online Negative Balance Protection trading brokerage.

Our team have listed brokers that match your criteria for you below. All brokerage data has been summarised into a comparison table. Scroll down.

Our brokerage comparison table below allows you to compare the below features for brokers offering Negative Balance Protection Brokers.

We compare these features to make it easier for you to make a more informed choice.

Top 15 Negative Balance Protection Brokers of 2020 compared

Here are the top Negative Balance Protection Brokers.

Compare Negative Balance Protection Brokers min deposits, regulation, headquarters, benefits, funding methods and fees side by side.

All brokers below are negative balance protection brokers. Learn more about what they offer below.

You can scroll left and right on the comparison table below to see more negative balance protection brokers that accept negative balance protection clients

Broker FP Markets Trading212 XTB IC Markets Pepperstone Plus500 EasyMarkets XM City Index Forex.com
Rating
Regulation Australian Securities and Investment Commission (ASIC), Cyprus Securities and Exchange Commission (CySEC) Financial Conduct Authority (FCA), Financial Supervision Commission (FSC) Financial Conduct Authority (FCA), FCA number FRN 522157, Cyprus Securities and Exchange Commission (CySEC), CySEC Licence Number: 169/12, Comisión Nacional del Mercado de Valores, Komisja Nadzoru Finansowego Australian Securities and Investment Commission (ASIC), Financial Services Authority (FSA), Cyprus Securities and Exchange Commission (CySEC) Financial Conduct Authority (FCA), Australian Securities and Investment Commission (ASIC), Dubai Financial Services Authority (DFSA), Pepperstone Markets Limited is incorporated in The Bahamas (number 177174 B), Licensed by the Securities Commission of The Bahamas (SCB) number SIA-F217 Plus500UK Ltd authorized & regulated by the FCA (#509909), Plus500CY Ltd authorized & regulated by CySEC (#250/14), Plus500AU Pty Ltd (ACN 153301681), ASIC in Australia AFSL #417727, FMA in New Zealand, FSP #486026 and Authorised Financial Services Provider in South Africa FSP #47546 Cyprus Securities and Exchange Commission (CySEC), Australian Securities and Investment Commission (ASIC) International Financial Services Commission(IFSC), Cyprus Securities and Exchange Commission (CySEC), Australian Securities and Investment Commission (ASIC) Financial Conduct Authority (FCA), Australian Securities and Investment Commission (ASIC), Monetary Authority of Singapore (MAS) Financial Conduct Authority (FCA), Cayman Islands Monetary Authority (CIMA), Investment Industry Regulatory Organization of Canada (IIROC), National Futures Association (NFA)
Min Deposit 100 1 No minimum deposit 200 200 100 100 5 25 500
Funding
  • Bank transfer
  • Credit Card
  • Paypal
  • Bank transfer
  • Credit Card
  • Paypal
  • Bank transfer
  • Credit Card
  • Paypal
  • Bank transfer
  • Credit Card
  • Paypal
  • Bank transfer
  • Credit Card
  • Paypal
  • Bank transfer
  • Credit Card
  • Paypal
  • Bank transfer
  • Credit Card
  • Paypal
  • Bank transfer
  • Credit Card
  • Paypal
  • Bank transfer
  • Credit Card
  • Paypal
  • Bank transfer
  • Credit Card
  • Paypal
Used By 10,000+ 14,000,000+ 250,000+ 60,000+ 10,000+ 15,500+ 142,500+ 70,000+ 14,000+ 40,000+
Benefits
  • Allows scalping
  • Allows hedging
  • Offers STP
  • Low min deposit
  • Offers Negative Balance Protection
  • Allows hedging
  • Offers STP
  • Low min deposit
  • Guaranteed stop loss
  • Offers Negative Balance Protection
  • Allows scalping
  • Allows hedging
  • Offers STP
  • Low min deposit
  • Offers Negative Balance Protection
  • Allows scalping
  • Allows hedging
  • Low min deposit
  • Offers Negative Balance Protection
  • Allows scalping
  • Allows hedging
  • Offers STP
  • Low min deposit
  • Offers Negative Balance Protection
  • Low min deposit
  • Offers Negative Balance Protection
  • Allows scalping
  • Allows hedging
  • Low min deposit
  • Guaranteed stop loss
  • Offers Negative Balance Protection
  • Allows scalping
  • Allows hedging
  • Low min deposit
  • Offers Negative Balance Protection
  • Allows hedging
  • Offers STP
  • Low min deposit
  • Guaranteed stop loss
  • Offers Negative Balance Protection
  • Allows scalping
  • Allows hedging
  • Offers STP
  • Guaranteed stop loss
  • Offers Negative Balance Protection
Accounts
  • Demo account
  • Mini account
  • Standard account
  • Zero spread account
  • ECN account
  • Managed account
  • Islamic account
  • Demo account
  • Pro account
  • Demo account
  • Micro account
  • Mini account
  • Standard account
  • Islamic account
  • Demo account
  • Mini account
  • Standard account
  • Zero spread account
  • Raw Spread account
  • Islamic account
  • Demo account
  • Mini account
  • Standard account
  • ECN account
  • Islamic account
  • Demo account
  • Standard account
  • Islamic account
  • Demo account
  • Micro account
  • Mini account
  • Standard account
  • Islamic account
  • Demo account
  • Micro account
  • Standard account
  • Zero spread account
  • Islamic account
  • Demo account
  • Micro account
  • Mini account
  • Standard account
  • Managed account
  • Demo account
  • Mini account
  • Standard account
  • ECN account
  • Islamic account
Spreads
  • fixed spreads
  • variable spreads
  • fixed spreads
  • variable spreads
  • fixed spreads
  • variable spreads
  • fixed spreads
  • variable spreads
  • fixed spreads
  • variable spreads
  • fixed spreads
  • variable spreads
  • fixed spreads
  • variable spreads
  • fixed spreads
  • variable spreads
  • fixed spreads
  • variable spreads
  • fixed spreads
  • variable spreads
Platforms MT4, MT5, IRESS, Mac, Web Trader, Tablet & Mobile apps Web Trader, Tablet & Mobile apps MT4, Mirror Trader, Web Trader, Tablet & Mobile apps MT4, MT5, Mirror Trader, ZuluTrade, Web Trader, cTrader, Mac MT4, MT5, Mac, ZuluTrade, Web Trader, cTrader, Tablet & Mobile apps Web Trader, Tablet & Mobile apps MT4, Web Trader, Tablet & Mobile apps MT4, MT5, Mac, Web Trader, Tablet & Mobile apps MT4, Web Trader, Tablet & Mobile apps MT4, MT5, WebTrader, Advantage Trader Pro, TradingView, Tablet and mobile apps
Support
  • Live chat
  • Phone support
  • Email support
  • Live chat
  • Phone support
  • Email support
  • Live chat
  • Phone support
  • Email support
  • Live chat
  • Phone support
  • Email support
  • Live chat
  • Phone support
  • Email support
  • Live chat
  • Phone support
  • Email support
  • Live chat
  • Phone support
  • Email support
  • Live chat
  • Phone support
  • Email support
  • Live chat
  • Phone support
  • Email support
  • Live chat
  • Phone support
  • Email support
Learn More Sign Up with
fpmarkets
Sign Up with
trading212
Sign Up with
xtb
Sign Up with
icmarkets
Sign Up with
pepperstone
Sign Up with
plus500
Sign Up with
easymarkets
Sign Up with
xm
Sign Up with
cityindex
Sign Up with
forexcom
Risk Warning Losses can exceed deposits CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 76% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. 80% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. Losses can exceed deposits CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 78.6% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money 80.5% of retail investor accounts lose money when trading CFDs with this provider.You should consider whether you can afford to take the high risk of losing your money. Your capital is at risk Your capital is at risk 74% of retail investor accounts lose money when trading CFDs with this provider 72% of retail investor accounts lose money when trading CFDs with this provider
Demo FP Markets
Demo
Trading 212
Demo
XTB
Demo
IC Markets
Demo
Pepperstone
Demo
Plus500
Demo
easyMarkets
Demo
XM
Demo
City Index
Demo
Forex.com
Demo
Excluded Countries US, JP, NZ US US, IN, PK, BD, NG , ID, BE AF, GN, SL, BW, IR, SY, MM, IQ, TG, KH, LS, YE, CI , LR, ZW, CU, LY, TZ, CG, ML, BO, LR, NE, AO, GM, NG, AG, GH, KR, KG, GN, SN, NA BR, KR, IR, IQ, SY, JP, US BE, US, CA, CN, ID, PH, TG, NG, DO, MA, ZW, PR, TZ, TN, UG, BW, AO US US, CA, IL, KR, IR, MM, CU, SD, SY US, CF, TD, CG, CG, CI, CU, GN, ER, GN, FR, GW, HT, IR, IQ, KR, LB, LR, LY, MM, NZ, NG, SL, SO, SD, SY, TM, UZ, VE, EH, YE, ZW BE

All Negative balance protection brokers in more detail

You can compare Negative Balance Protection Brokers ratings, min deposits what the the broker offers, funding methods, platforms, spread types, customer support options, regulation and account types side by side.

We also have an indepth Top Negative Balance Protection Brokers for 2020 article further below. You can see it now by clicking here

We have listed top Negative balance protection brokers below.

Negative Balance Protection Brokers List

FP Markets
(4/5)
Min deposit : 100
FP Markets was established in 2005 and is used by over 10000+ traders. Losses can exceed deposits FP Markets offers Forex, CFDs

Funding methods

Bank transfer Credit Card Paypal

Platforms

MT4, MT5, IRESS, Mac, Web Trader, Tablet & Mobile apps

Customer support

Live chat Phone support Email support

Account Types

Micro account Standard account Islamic account VIP account
Regulated by Australian Securities and Investment Commission (ASIC), Cyprus Securities and Exchange Commission (CySEC)
Trading212
(4/5)
Min deposit : 1
Trading 212 was established in 2006 and is used by over 14000000+ traders. CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 76% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. Trading 212 offers Stocks, Forex, Commodities, Indices

Funding methods

Bank transfer Credit Card Paypal

Platforms

Web Trader, Tablet & Mobile apps

Customer support

Live chat Phone support Email support

Account Types

Micro account Standard account Islamic account VIP account
Regulated by Financial Conduct Authority (FCA), Financial Supervision Commission (FSC)
XTB
(4/5)
Min deposit : 0
XTB was established in 2002 and is used by over 250000+ traders. 80% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. XTB offers Forex, CFDs, Cryptocurrency

Funding methods

Bank transfer Credit Card Paypal

Platforms

MT4, Mirror Trader, Web Trader, Tablet & Mobile apps

Customer support

Live chat Phone support Email support

Account Types

Micro account Standard account Islamic account VIP account
Regulated by Financial Conduct Authority (FCA), FCA number FRN 522157, Cyprus Securities and Exchange Commission (CySEC), CySEC Licence Number: 169/12, Comisión Nacional del Mercado de Valores, Komisja Nadzoru Finansowego
IC Markets
(4/5)
Min deposit : 200
IC Markets was established in 2007 and is used by over 60000+ traders. Losses can exceed deposits IC Markets offers Forex, CFDs, Spread Betting, Share dealing, Cryptocurrencies

Funding methods

Bank transfer Credit Card Paypal

Platforms

MT4, MT5, Mirror Trader, ZuluTrade, Web Trader, cTrader, Mac

Customer support

Live chat Phone support Email support

Account Types

Micro account Standard account Islamic account VIP account
Regulated by Australian Securities and Investment Commission (ASIC), Financial Services Authority (FSA), Cyprus Securities and Exchange Commission (CySEC)
Pepperstone
(4/5)
Min deposit : 200
Pepperstone was established in 2010 and is used by over 10000+ traders. CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 78.6% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money Pepperstone offers Forex, CFDs, Social Trading

Funding methods

Bank transfer Credit Card Paypal

Platforms

MT4, MT5, Mac, ZuluTrade, Web Trader, cTrader, Tablet & Mobile apps

Customer support

Live chat Phone support Email support

Account Types

Micro account Standard account Islamic account VIP account
Regulated by Financial Conduct Authority (FCA), Australian Securities and Investment Commission (ASIC), Dubai Financial Services Authority (DFSA), Pepperstone Markets Limited is incorporated in The Bahamas (number 177174 B), Licensed by the Securities Commission of The Bahamas (SCB) number SIA-F217
Plus500
(4/5)
Min deposit : 100
Plus500 was established in 2008 and is used by over 15500+ traders. 80.5% of retail investor accounts lose money when trading CFDs with this provider.You should consider whether you can afford to take the high risk of losing your money. Plus500 offers CFDs

Funding methods

Bank transfer Credit Card Paypal

Platforms

Web Trader, Tablet & Mobile apps

Customer support

Live chat Phone support Email support

Account Types

Micro account Standard account Islamic account VIP account
Regulated by Plus500UK Ltd authorized & regulated by the FCA (#509909), Plus500CY Ltd authorized & regulated by CySEC (#250/14), Plus500AU Pty Ltd (ACN 153301681), ASIC in Australia AFSL #417727, FMA in New Zealand, FSP #486026 and Authorised Financial Services Provider in South Africa FSP #47546
EasyMarkets
(4/5)
Min deposit : 100
easyMarkets was established in 2001 and is used by over 142500+ traders. Your capital is at risk easyMarkets offers CFD, Forex, Commodities, Indices, Shares, Crypto

Funding methods

Bank transfer Credit Card Paypal

Platforms

MT4, Web Trader, Tablet & Mobile apps

Customer support

Live chat Phone support Email support

Account Types

Micro account Standard account Islamic account VIP account
Regulated by Cyprus Securities and Exchange Commission (CySEC), Australian Securities and Investment Commission (ASIC)
XM
(4/5)
Min deposit : 5
XM was established in 2009 and is used by over 70000+ traders. Your capital is at risk XM offers Forex, CFDs

Funding methods

Bank transfer Credit Card Paypal

Platforms

MT4, MT5, Mac, Web Trader, Tablet & Mobile apps

Customer support

Live chat Phone support Email support

Account Types

Micro account Standard account Islamic account VIP account
Regulated by International Financial Services Commission(IFSC), Cyprus Securities and Exchange Commission (CySEC), Australian Securities and Investment Commission (ASIC)
City Index
(3/5)
Min deposit : 25
City Index was established in 1983 and is used by over 14000+ traders. 74% of retail investor accounts lose money when trading CFDs with this provider City Index offers Forex, CFDs, Spread Betting

Funding methods

Bank transfer Credit Card Paypal

Platforms

MT4, Web Trader, Tablet & Mobile apps

Customer support

Live chat Phone support Email support

Account Types

Micro account Standard account Islamic account VIP account
Regulated by Financial Conduct Authority (FCA), Australian Securities and Investment Commission (ASIC), Monetary Authority of Singapore (MAS)
Forex.com
(3/5)
Min deposit : 500
Forex.com was established in 1999 and is used by over 40000+ traders. 72% of retail investor accounts lose money when trading CFDs with this provider Forex.com offers Forex, Indices, Commodities, Equities, Cryptocurrencies

Funding methods

Bank transfer Credit Card Paypal

Platforms

MT4, MT5, WebTrader, Advantage Trader Pro, TradingView, Tablet and mobile apps

Customer support

Live chat Phone support Email support

Account Types

Micro account Standard account Islamic account VIP account
Regulated by Financial Conduct Authority (FCA), Cayman Islands Monetary Authority (CIMA), Investment Industry Regulatory Organization of Canada (IIROC), National Futures Association (NFA)