XTB introduces protection against negative balances from 1 October

Dom Maklerski X-Trade Brokers SA informs that since October XUMUM 1 has been introducing protection against a negative balance on the account. Same XTB is the first Polish Forex broker who decided to take such a step.

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

No overdraft - guaranteed!

The title protection is a guarantee regulated by appropriate provisions in the contract, ensuring traders that regardless of circumstances and events, losses will not lead to debt. Even if the account has an overdraft, it will not be necessary to pay it back. The broker will bring the account balance to zero within a few days. It is worth noting that the warranty will cover all types of accounts - Basic, Standard and Pro. The transactional platform we use (xStation or MetaTrader 4) as well as the instruments on which we conclude transactions are also irrelevant.

This means that transactions made on any market (currencies, CFDs on stocks, indices, cryptocurrencies, ETFs ...), regardless of the size of the resulting debit, will not be burdened with additional risk.

Protection against overdraft - fashion or new standards?

Last month for a similar move the Swiss broker Dukascopy decided. This is a continuation of the trend observed among brokers who, wanting to attract new customers, decide to take the risk of debt on their shoulders.

In addition, European regulators are pressing for the improvement of collateral for retail investors (German BaFIN introduced regulations requiring brokers to introduce such protection). The traders themselves, taught by experience (see 15 January 2015), are also increasingly eager to trade without fear that they can become debtors in an instant and look for brokers who are able to provide them.