BossaFX as the second Polish broker introduces protection against debit

Yes it's true! BossaFX bills, ie the forex part of the offer of the Brokerage House of Bank Ochrony Środowiska, were protected against the negative balance as of September XIII. Thus it is the second Polish Forex brokerwho decided to take this step.

Be sure to read: Forex brokers and debit protection - 2017 statement

Full protection at BossaFX

Only 9 reported a day ago on the introduction of overdraft protection for the first Polish broker - X-Trade Brokers (although protection will only apply from October XIII). Now the same decision has been made by one of the main competitors of XTB, which also operates in the Market Maker model.

DM BOŚ has decided to guarantee additional security to its clients without any quota restrictions and regardless of market conditions, which will surely satisfy a wide range of traders. The order execution model certainly had an impact and contributed to the rapid introduction of this security. At the moment, two other Polish brokers (TMS Brokers and Noble Markets) offering MM accounts remain on offer without overdraft protection.

For now, we do not hear about plans to limit the leverage for BossaFX customers internally. Nevertheless, it seems that we are beginning to deal with the new standard and introducing the title protection by further brokerage houses should only be a matter of time.

Sebastian Zadora, director of sales at DM BOŚ, in an interview with Comparic, said:

It is quite clear that financial markets have become more volatile, dynamic and even more vulnerable to various price shocks in recent years. It was quite clearly demonstrated by such situations as the SNB decision of 15 January 2015 or the referendum on Brexit. Investors who consciously open bills in BossaFX to take risks, would like to be able to do it in a pragmatic and controlled manner. For this to be possible, it must be possible to at least estimate if not accurately calculate this risk. In the case of the aforementioned situations, when the market is affected by the problem of absolute lack of liquidity, risk control becomes very difficult, and often even impossible.

Hence, to meet such situations on our part, which in fact consists in taking over from us of the investor that part of the risk that can not be estimated in traditional way and available to every trader. 25 from 2017 on September. we stop using the famous disclaimers saying that "the loss may exceed the investor's balance". At present, potential losses are limited to the balance of funds.

It also adds:

Our decision has exactly the same goal as the regulators say - maximum possible investor protection. I think it is hard to imagine any other move that would, in a similar way to negative balance protection, improve the safety of traders without violating their right to freely and consciously take risks. We introduce changes under the influence of our clients, but we do it when we are ready to do so. As you know, the event that signaled the problem of risk related to overdrafts took place over two years ago. It was the time needed to thoroughly study the phenomenon, assess its consequences and implement appropriate solutions.