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How good is NBP with ECN accounts?
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mitchelstrack

Member Since Oct 05, 2020  18 posts mitchelstrack Nov 05 at 05:56
I am new to trading and have been recommended by a few to possibly consider negative protection with an ECN account. Avoiding STP due to interest clashing (that’s what I heard). Is it actually a help?

Marshshaun

Member Since Oct 06, 2020  17 posts Marshshaun Nov 05 at 06:46
From my experience I can say negative balance protection can be a bailout. I remember when I started trading little did I know about the negative balance protection and ended up losing a big chunk of my money. With NBP you are not going to lose more money than what you have invested, and believe me, this is a life saver.

Lorencecolling

Member Since Oct 01, 2020  28 posts Lorencecolling Nov 05 at 09:47
Ya I do agree with you mate, experience wasn't that great with an STP, dropped the idea of using it. Instead found ECN to be a better option. But it wasn’t an ECN account for me until 3 sleepless nights with my lost trades, realised the importance of negative balance protection when I saw my entire investment draining. Using XTB and Fxview’s ECN atm.

Maxwelljoe

Member Since Oct 08, 2020  21 posts Maxwelljoe Nov 05 at 12:55
What is your budget? If you are new to forex trading I would start with a lower budget and opt for an STP trader. Reasons being i) In general STP brokers don't charge a high amount for opening a trading account. ii) the commissions are low for each trade for STP.

mitchelstrack

Member Since Oct 05, 2020  18 posts mitchelstrack Nov 05 at 13:26
Thanks for the input. My budget is around 2.5K.


Member Since Oct 22, 2020  42 posts Nov 05 at 18:24
mitchelstrack posted:
I am new to trading and have been recommended by a few to possibly consider negative protection with an ECN account. Avoiding STP due to interest clashing (that’s what I heard). Is it actually a help?


Go for ECN and you are good, all my clients copying my trades I also advised to go for ECN.

Bladiminmunro

Member Since Oct 15, 2020  42 posts Bladiminmunro Nov 06 at 04:23
In STP there is no conflict of interest between the trader and the broker because of the style in which the orders are executed. Brokers benefit from the commissions, not from the loss of customers.


Member Since Oct 22, 2020  42 posts Nov 06 at 05:46
ECN/STP

shaunmarsh

Member Since Oct 05, 2020  32 posts shaunmarsh Nov 06 at 08:24
I would never use a broker that doesn’t offer NBP. There’s this one trade that I so vividly remember in my initial days of trading when I was using a leverage of 30:1 on XM on EURUSD and was hopeful of good returns. The price just suddenly dropped, as opposed to my estimation of prices going in the reverse. Before I could realise what was happening and close my trade, my balance came tumbling down to 0. Had it not been been for the nbp I would have been in a debt of 15000. And I seriously don’t know how in such a scenario one would go about repaying the broker. I just simply decided to always stick to brokers with nbp. Fxview and oanda are other brokers that I’m using who provide this feature.

Davidtaylorr

Member Since Oct 23, 2020  19 posts Davidtaylorr Nov 09 at 03:54
I don't think if you have proper risk assessment and stop losses you require any NBP.

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EURUSD 1.19587 GBPUSD 1.33583
USDJPY 104.366 USDCAD 1.29749

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