Best Brokers With Negative Balance Protection

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James Barra
James is an investment writer with a background in financial services. As a former management consultant, he has worked on major operational transformation programmes at prominent European banks. James authors, edits and fact-checks content for a series of investing websites.
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William Berg
William contributes to several investment websites, leveraging his experience as a consultant for IPOs in the Nordic market and background providing localization for forex trading software. William has worked as a writer and fact-checker for a long row of financial publications.
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Jemma Grist
Jemma is a writer, editor and fact-checker focused on retail trading and investing. Jemma brings a unique perspective to the forex, stock, and cryptocurrency markets and works across several investment websites as a researcher and broker analyst.
Updated

The best brokers with negative balance protection ensure that you never lose more than your deposited funds, even in highly volatile markets. This crucial safeguard helps active traders manage risk when using leverage.

Explore our top brokers for negative balance protection, rigorously tested by our industry experts and experienced traders.

Best Brokers With Negative Balance Protection 2025

These are the top 6 brokers with negative balance protection based on our hands-on tests:

Why Are These the Best Brokers With Negative Balance Protection?

Here's our brief take on what makes these brokers the best if you want negative balance protection:

  1. Interactive Brokers is the best broker with negative balance protection in 2025 - Interactive Brokers (IBKR) is a premier brokerage, providing access to 150 markets in 33 countries, along with a suite of comprehensive investment services. With over 40 years of experience, this Nasdaq-listed firm adheres to stringent regulations by the SEC, FCA, CIRO, and SFC, amongst others, and is one of the most trusted brokers for trading around the globe.
  2. FOREX.com - Founded in 1999, FOREX.com is now part of StoneX, a financial services organization serving over one million customers worldwide. Regulated in the US, UK, EU, Australia and beyond, the broker offers thousands of markets, not just forex, and provides excellent pricing on cutting-edge platforms.
  3. UnitedPips - Operating since 2016 and based in Saint Lucia, UnitedPips is a non-dealing desk broker serving clients in over 137 countries. It specializes in CFD trading across around 80+ assets with high leverage up to 1:1000.
  4. Capitalcore - Capitalcore is an offshore broker, based in Saint Vincent and the Grenadines and established in 2019. Traders can choose from four accounts (Classic, Silver, Gold, VIP) with lower spreads and larger bonuses as you move through the tiers. Where Capitalcore distinguishes itself is its high leverage up to 1:2000 and zero swap fees, though these don’t compensate for the weak oversight from the IFSA and paltry education and research.
  5. Videforex - Launched in 2017, Videforex offers access to stock, index, crypto, forex and commodities markets via binary options and CFDs. The proprietary platform, mobile app and integrated copy trading are user-friendly and will suit new and casual traders, and the market analysis tools and trading contests provide good ways to improve your trading skills.
  6. Sage FX - SageFX is an offshore, unregulated CFD broker that offers highly leveraged trading on forex, stocks, commodities, indices and crypto via the TradeLocker platform. Traders can access commission-free trading or an ECN account with tight spreads. While the broker's regulatory status is weak, it does provide segregated accounts and two-factor authentication.

Compare the Top Brokers for Negative Balance Protection on Key Attributes

Find the perfect broker for you based on our comparison of key features important to traders looking for account safeguards:

Compare the Top Brokers for Negative Balance Protection on Key Attributes
Broker Minimum Deposit Leverage Platforms Regulators
Interactive Brokers $0 1:50 Trader Workstation (TWS), IBKR Desktop, GlobalTrader, Mobile, Client Portal, AlgoTrader, OmniTrader, TradingView, eSignal, TradingCentral, ProRealTime, Quantower FCA, SEC, FINRA, CFTC, CBI, CIRO, SFC, MAS, MNB, FINMA, AFM
FOREX.com $100 1:50 WebTrader, Mobile, MT4, MT5, TradingView NFA, CFTC
UnitedPips $10 1:1000 UniTrader IFSA
Capitalcore $10 1:2000 WebTrader, Pro IFSA
Videforex $250 1:500 TradingView -
Sage FX $10 1:500 TradeLocker Pending

How Safe Are These Brokers With Negative Account Protection?

How dependable are the top trading accounts with negative balance protection and do they have other measures that help safeguard your funds?

How Safe Are These Brokers With Negative Account Protection?
Broker Trust Rating Guaranteed Stop Loss Negative Balance Protection Segregated Accounts
Interactive Brokers 4.5
FOREX.com 4.9
UnitedPips 2
Capitalcore 3.3
Videforex 2.5
Sage FX 2.5

Compare Mobile Trading

Are these brokers good for trading on mobile and tablet devices?

Compare Mobile Trading
Broker Mobile Apps iOS Rating Android Rating Smart Watch App
Interactive Brokers iOS & Android 4.3 4.5
FOREX.com iOS & Android 3.6 3.8
UnitedPips Web Access Only 3 3
Capitalcore Android, Webtrader 3 3
Videforex Android 4.1 4.4
Sage FX iOS and Android 5 4.1

Are the Top Brokers Brokers Offering Negative Balance Safeguards Good for Beginners?

Beginners should use brokers that allow trading with a demo account and have other features that aspiring traders need:

Are the Top Brokers Brokers Offering Negative Balance Safeguards Good for Beginners?
Broker Demo Account Minimum Deposit Minimum Trade Education Rating Support Rating
Interactive Brokers $0 $100 4.3 3
FOREX.com $100 0.01 Lots 4.5 4.3
UnitedPips $10 0.01 Lots 2.5 3.5
Capitalcore $10 0.01 Lots 3.5 3.5
Videforex $250 $0.01 1.8 4.2
Sage FX $10 0.01 Lots 1.8 3

Are the Top Brokers Ensuring No Negative Account Balances Good for Advanced Traders?

Alongside account protection, experienced traders should look for sophisticated features to bolster the trading experience:

Are the Top Brokers Ensuring No Negative Account Balances Good for Advanced Traders?
Broker Automated Trading VPS AI Pro Account Leverage Low Latency Extended Hours
Interactive Brokers Capitalise.ai & TWS API 1:50
FOREX.com Expert Advisors (EAs) on MetaTrader 1:50
UnitedPips - 1:1000
Capitalcore - 1:2000
Videforex 1:500
Sage FX Expert Advisors (EAs) on MetaTrader 1:500

Compare the Ratings of Our Top Brokers With Account Protection

See how the top brokers who prevent accounts going below zero compare in all key areas after our latest investigation:

Compare the Ratings of Our Top Brokers With Account Protection
Broker Trust Platforms Assets Mobile Fees Accounts Research Education Support
Interactive Brokers 4.5 3.3 4.7 4.4 4.3 3.5 4.4 4.3 3
FOREX.com 4.9 4.6 4.3 3.7 4.6 4 4.8 4.5 4.3
UnitedPips 2 3.5 3 3 3.8 3.5 2.8 2.5 3.5
Capitalcore 3.3 3.8 3.8 3 3 3.8 2.5 3.5 3.5
Videforex 2.5 3.5 3.6 4.3 3.3 3 1.3 1.8 4.2
Sage FX 2.5 2.5 3 4.6 3.3 3.5 1.3 1.8 3

Compare Trading Fees

The cost of trading with a broker adds up over time, especially for frequent traders. Here's how our top trading platforms offering account balance protection measure up on costs:

Compare Trading Fees
Broker Cost Rating Fixed Spreads Inactivity Fee
Interactive Brokers 4.3 $0
FOREX.com 4.6 $15
UnitedPips 3.8 $0
Capitalcore 3 $0
Videforex 3.3 $10
Sage FX 3.3 -

How Popular Are These Brokers Preventing Negative Equity Losses?

Understandably, many traders looking for account security prefer brokers with the highest number of active traders:

Why Trade with Interactive Brokers, a Negative Balance Protection Provider?

"Interactive Brokers is one of the best brokers for advanced day traders, providing powerful charting platforms, real-time data, and customizable layouts, notably through the new IBKR Desktop application. Its superb pricing and advanced order options also make it highly attractive for day traders, while its diverse range of equities is still among the best in the industry."

Christian Harris Christian Harris, Reviewer

Interactive Brokers Quick Facts

Demo AccountYes
InstrumentsStocks, Options, Futures, Forex, Funds, Bonds, ETFs, Mutual Funds, CFDs, Cryptocurrencies
RegulatorFCA, SEC, FINRA, CFTC, CBI, CIRO, SFC, MAS, MNB, FINMA, AFM
PlatformsTrader Workstation (TWS), IBKR Desktop, GlobalTrader, Mobile, Client Portal, AlgoTrader, OmniTrader, TradingView, eSignal, TradingCentral, ProRealTime, Quantower
Minimum Deposit$0
Minimum Trade$100
Leverage1:50
Account CurrenciesUSD, EUR, GBP, CAD, AUD, INR, JPY, SEK, NOK, DKK, CHF, AED, HUF

Pros

  • The TWS platform has clearly been built for intermediate and advanced traders and comes with over 100 order types and a reliable real-time market data feed that rarely goes offline.
  • With low commissions, tight spreads and a transparent fee structure, IBKR delivers a cost-effective environment for short-term traders.
  • There's a vast library of free or paid third-party research subscriptions catering to all types of traders, plus you can enjoy commission reimbursements from IBKR if you subscribe to Toggle AI.

Cons

  • IBKR provides a wide range of research tools, but their distribution across trading platforms and the web-based 'Account Management' page lacks consistency, leading to a confusing user experience.
  • You can only have one active session per account, so you can’t have your desktop program and mobile app running simultaneously, making for a sometimes frustrating trading experience.
  • Support can be slow and frustrating based on tests, so you might find it challenging to reach customer service representatives promptly or encounter delays in resolving issues.

Why Trade with FOREX.com, a Negative Balance Protection Provider?

"FOREX.com remains a best-in-class brokerage for active forex traders of all experience levels, with over 80 currency pairs, tight spreads from 0.0 pips and low commissions. The powerful charting platforms collectively offer over 100 technical indicators, as well as extensive research tools."

Christian Harris Christian Harris, Reviewer

FOREX.com Quick Facts

Bonus OfferVIP status with up to 10k+ in rebates - T&Cs apply.
Demo AccountYes
InstrumentsForex, Stock CFDs, Futures, Futures Options
RegulatorNFA, CFTC
PlatformsWebTrader, Mobile, MT4, MT5, TradingView
Minimum Deposit$100
Minimum Trade0.01 Lots
Leverage1:50
Account CurrenciesUSD, EUR, GBP, CAD, AUD, JPY, CHF, PLN

Pros

  • The in-house Web Trader continues to shine as one of the best-designed platforms for aspiring day traders with a slick design and over 80 technical indicators for market analysis.
  • There’s a wealth of educational resources including tutorials, webinars, and a stacked YouTube channel to help you get educated in the financial markets.
  • With over 20 years of experience, excellent regulatory oversight, and multiple accolades including runner-up in our 'Best Forex Broker' awards, FOREX.com boasts a global reputation as a trusted brokerage.

Cons

  • FOREX.com's MT4 platform offers approximately 600 instruments, significantly fewer than the over 5,500 available on its non-MetaTrader platforms.
  • Funding options are limited compared to leading alternatives like IC Markets and don’t include many popular e-wallets, notably UnionPay and POLi.
  • Despite increasing its range of instruments, FOREX.com's product portfolio is still limited to forex and CFDs, so there are no options to invest in real stocks, real ETFs or real cryptocurrencies.

Why Trade with UnitedPips, a Negative Balance Protection Provider?

"UnitedPips is ideal for traders seeking leveraged trading opportunities, the security of fixed spreads, and the flexibility to deposit, withdraw, and trade cryptocurrencies - all in one sleek TradingView-powered platform."

Christian Harris Christian Harris, Reviewer

UnitedPips Quick Facts

Bonus Offer40% Deposit Bonus
Demo AccountYes
InstrumentsCFDs, Forex, Precious Metals, Crypto
RegulatorIFSA
PlatformsUniTrader
Minimum Deposit$10
Minimum Trade0.01 Lots
Leverage1:1000
Account CurrenciesUSD

Pros

  • Although being handed off mid-chat due to shift changes during testing was frustrating, customer support is generally good with quick, helpful responses, and 24/7 support via phone and email for regional teams is a definite advantage.
  • UnitedPips’ platform performs well, with an intuitive design that will appeal to beginners, while the TradingView integration delivers powerful charting tools without overwhelming users, making it straightforward to execute trades efficiently.
  • UnitedPips offers impressive leverage up to 1:1000 with zero swap fees or commissions, which can enhance potential returns for day traders and swing traders looking to control prominent positions with less capital.

Cons

  • UnitedPips' selection of tradable instruments is still minimal, comprising a bare minimum selection of forex, metals and crypto. There are no equities, indices or ETFs, which may be a drawback for experienced traders looking for diverse opportunities.
  • UnitedPips lacks comprehensive research, while the educational content for beginner traders is woeful. Compared to brokers like eToro, which offers tutorials, webinars, and advanced courses, UnitedPips offers minimal resources to help new traders understand key concepts.
  • Unlike brokers such as IG, UnitedPips is an offshore broker not regulated by any 'green tier' financial authorities, raising concerns for traders seeking assurance and protection under well-established regulatory frameworks.

Why Trade with Capitalcore, a Negative Balance Protection Provider?

"The major selling points of Capitalcore are its high leverage options up to 1:2000 and zero commission or swap fees. However, its weak regulatory oversight from the IFSA and non-existent education place it far behind the top brokers."

Christian Harris Christian Harris, Reviewer

Capitalcore Quick Facts

Bonus Offer40% Deposit Bonus up to $2,500
Demo AccountYes
InstrumentsForex, Metals, Stocks, Cryptos, Futures Indices, Binary Options
RegulatorIFSA
PlatformsWebTrader, Pro
Minimum Deposit$10
Minimum Trade0.01 Lots
Leverage1:2000
Account CurrenciesUSD

Pros

  • Unlike most brokers, Capitalcore offers an unlimited demo account that takes under 5 minutes to open.
  • Capitalcore has added binary options trading on 30+ currency pairs, metals and crypto with one-click trading and payouts up to 95%.
  • Capitalcore is one of the only brokers to charge zero swap fees, which may appeal to Islamic traders looking to comply with Islamic Finance.

Cons

  • Platform support is limited to proprietary software, so there's no integration with the market-leading MetaTrader or cTrader, which offer built-in economic news and support automated trading.
  • The web platform was inconsistent during testing, with occasional technical glitches that meant the trading platform wouldn’t load.
  • Capitalcore’s threadbare education and research seriously trail category leaders like IG, making it less suitable for aspiring traders.

Why Trade with Videforex, a Negative Balance Protection Provider?

"Videforex will serve traders looking for a no-frills, easy-to-use platform to speculate on the direction of popular financial markets through binaries. With a sign-up process that takes a matter of minutes and a web-accessible platform, getting started is a breeze. "

William Berg William Berg, Reviewer

Videforex Quick Facts

Bonus Offer20% to 200% Deposit Bonus
Demo AccountYes
InstrumentsBinary Options, CFDs, Forex, Indices, Commodities, Crypto
PlatformsTradingView
Minimum Deposit$250
Minimum Trade$0.01
Leverage1:500
Account CurrenciesUSD, EUR, GBP, AUD, RUB

Pros

  • Videforex is one of the few brokers with 24/7 multilingual video support, providing comprehensive assistance for active traders.
  • Videforex regularly runs trading contests, offering practice opportunities and cash prizes to beginners and experienced traders, with position sizes from just ¢0.01.
  • With the addition of over 60 new assets, Videforex now gives traders access to in-demand crypto (TON, ARB, PEPE, SHIB), top-performing tech stocks (Tesla, Meta, Nvidia, Amazon), and a more diverse FX portfolio (THB, ZAR, and MXN).

Cons

  • Videforex lacks authorization from a trusted regulator, meaning traders may receive little to zero safeguards like segregated client accounts.
  • The client terminal needs improvements based on our latest tests, sporting sometimes slow and unresponsive widgets which could dampen the experience for day traders.
  • The absence of any educational tools is a serious drawback for newer traders who can find blogs, videos and live trading sessions at category leaders.

Why Trade with Sage FX, a Negative Balance Protection Provider?

"Sage FX will suit forex traders looking for high leverage and ECN spreads. The broker's prop trading service will also appeal to users looking for funded accounts with up to $200K available."

Tobias Robinson Tobias Robinson, Reviewer

Sage FX Quick Facts

Bonus Offer$1,500 trading competition
Demo AccountYes
InstrumentsForex, indices, cryptos
RegulatorPending
PlatformsTradeLocker
Minimum Deposit$10
Minimum Trade0.01 Lots
Leverage1:500
Account CurrenciesUSD, EUR, GBP, CAD, AUD

Pros

  • Bonus offers and trading competitions
  • High leverage up to 1:500
  • Ability to deposit and withdraw via Bitcoin

Cons

  • Lacks educational resources and other extra features
  • Not regulated by any reputable body
  • Relatively narrow range of asset classes

What Is Negative Balance Protection?

Negative balance protection is a security feature that applies when trading leveraged products.

It prevents users from being able to lose more money than they have in their accounts, no matter how far their open positions drop, stopping them from becoming indebted to their broker.

Generally, this applies to retail clients only and professional traders are not offered the same level of protection.

How Does Negative Balance Protection Work?

Negative balance protection ensures that, whenever you trade with leverage, you cannot lose more money than the balance of your account. It protects retail clients from becoming indebted to brokers.

The best way to explain how this works with one of the best brokers with negative balance protection is through an example…

Let’s say that you have deposited $1,500 into a CFD trading account. The broker you are using offers maximum leverage of 1:30 and you decide to open a position with $1,000 at a leverage rate of 1:5.

This means that the position you actually open is worth $5,000. If the market is particularly volatile and your position suddenly drops by 40%, you will suffer a loss of $2,000, 133% of your account’s deposited funds (not the position margin).

If you did not have negative balance protection, you would owe the broker $500.

However, if you got into this same scenario but your broker does provide negative balance protection, your losses cannot exceed the deposited amount of $1,500.

If the loss starts building, the broker will automatically close the trade when the loss hits $1,500, ensuring that you do not owe the broker money. Negative balance protection only protects funds up to the balance of your account.

If you had more than $2,000 deposited, you would lose the full amount.

It is also worth noting that this is not always a guarantee. Most brokers will close the position as it becomes too large but significant margin volatility could cause the position to drop even further before the order is fulfilled.

When this happens, you may still owe the broker some money. However, the best brokers with negative balance protection will guarantee this and take on that added loss themselves.

Why Did Negative Balance Protection Become Mainstream?

Negative balance protection became particularly prevalent in January 2015. Up to this point, the Swiss National Bank (SNB) had been holding the Swiss Franc (CHF) at a fixed exchange rate with the Euro (EUR), which it had been doing since September 2011.

On January 14th, 2015, the SNB announced that it would stop this practice and, as a result, the Swiss Franc soared against the single market currency.

While this would be seen as a success for the Swiss National Bank, it had some unfortunate repercussions. The Swiss market recorded unforeseen losses as many traders had been shorting the Swiss Franc.

Many of these investors ended up with negative balances as a result and it was feared that the brokers would demand these losses be paid to cover their losses.

Some brokers, including FXCM, chose to “forgive” up to 90% of their clients given the unprecedented nature of the losses.

The main outcome was that negative balance protection entered the limelight and regulatory bodies started to create measures to prevent such drastic losses from happening again.

Pros

  • Prevents large losses
  • Helps traders to manage risk
  • Saves traders from large debts
  • Protects against high market volatility
  • Prevents further events like the Swiss Franc scandal

How Is Negative Balance Protection Regulated?

Following the events in 2015, many regulators have implemented different rules when it comes to negative balance protection. It is important to check each individual broker but here is an overview of some of the main regulatory bodies policies.

The Financial Conduct Authority (FCA), the UK’s regulatory body, has implemented rules to ensure negative balance protection is offered. They have stated that firms offering CFDs and CFD-like assets must guarantee that a client cannot lose more than the total funds in their trading account.

Additionally, they must close out a customer’s position when their funds fall to 50% of the margin needed to maintain the open position on their CFD account. This applies to retail clients only, professional traders do not receive the same protection. The FCA’s supervisory team will work with brokers to ensure the proper management of negative balance protection.

The Cyprus Securities and Exchanges Commission (CySEC) is a regulatory body based in Cyprus and one of the main regulators for EU brokers. CySEC has taken a more lenient route for the implementation of negative balance protection.

Under them, brokers must implement it on a per-account basis. This means that a client who has one large leveraged position within a portfolio can still lose more than the value of the initial position.

The other positions or funds the client has will be used to cover the negative balance. Overall, a customer’s account can never have a negative balance and, if it does, that loss falls to the broker.

Australia’s regulatory body, the Australian Securities and Investments Commission (ASIC), also implemented similar rule changes in 2021. In addition to limiting the leverage offered on different assets to a maximum of 1:30, they have stated that brokers must provide negative balance protection.

This ensures that clients losses are limited to the funds available in their account. As with the FCA and CySEC, these rules only apply to retail traders, professional traders still stand to lose more than their available funds.

Germany’s Federal Financial Supervisory Authority, better known as BaFin, also requires negative balance protection to be offered to clients. B

aFin did not introduce a limit on leverage in 2017 but they have stated that all licensed brokers must offer negative balance protection to customers, ensuring retail clients cannot lose more than they have deposited into their accounts. Any losses on top of this are borne by the broker.

How To Choose Brokers With Negative Balance Protection

When choosing from the best brokers with negative balance protection, there are many things to look out for. Below we have outlined our top recommendations.

One of the first things to check is which agency the broker is regulated by. Try to ensure that you use a broker who is regulated by a top-tier regulatory body, such as the FCA, CySEC or ASIC. On top of requiring that brokers offer negative balance protection, they implement fund segregation rules, offer dispute meditation and provide insurance cover.

Check each broker’s website and find the section on security. Here, it should clearly mention whether they offer negative balance protection, alongside other things like cybersecurity, login protection and two-factor authentication (2FA).

Customer reviews are a great way to learn about a broker’s practices. Many people will note down their experiences with brokers, positive or negative, on online forums and websites. Visit these to learn about brokers and how they deal with issues like negative balance, fund withdrawal issues and more.

Look at the funding procedures a broker provides. Check that they provide a variety of payment methods and that withdrawals and deposits are processed within a few working days. This allows you to trust that your funds will go through successfully and you do not have to worry about your money being lost. Lots of payment methods is also an indication of privacy and security levels, as each provider will have required standards.

Additionally, there are a host of other things to check when comparing the best brokers with negative balance protection. You should ensure that the chosen broker offers the assets you want to trade, be that forex or stock CFDs, for example.

Moreover, compare fees and spreads, trading platforms, mobile apps and additional features.

Bottom Line

Opening accounts with the brokers providing negative balance protection helps protect your funds from serious market downturns and volatility. It ensures that, when trading a leveraged position, you cannot lose more than the amount you have deposited in your account,  preventing retail clients from becoming indebted to brokers.

When choosing a broker, try to ensure that they offer negative balance protection as markets are volatile and you do not want unexpected losses. Additionally, follow our guide above to ensure you pick brokers that you can trade safely with.

FAQ

Does The FCA Require Negative Balance Protection?

Yes, the FCA requires all licensed brokers to offer negative balance protection. This is relevant for all retail clients, though professional traders are not afforded the same protection as they are expected to better understand the risks involved with margin trading.

Does CySEC Require Negative Balance Protection?

Yes, CySEC does require negative balance protection. They are more lenient than some other bodies but they still state clients accounts cannot go into the red.

Do The Best Brokers With Negative Balance Protection Prevent Big Losses?

Brokers with negative balance protection don’t just automatically stop any major losses from hitting your account, they only protect you from a net zero balance. This means that major losses that don’t completely wipe out your capital are still let through, so you should still implement robust risk management.

Do The Best Brokers With Negative Balance Protection Remove Risk?

Negative balance protection removes the risk of being indebted to the broker, though general financial risk is still very much present and you can still lose your entire account balance.