What is negative balance protection and do all EU brokers offer it?
How this answer was verified
- Cross-checked against broker-published fact sheets, regulator licensing databases, and ESMA product intervention notices.
- Reviewed by the FX-Brokers Asia editorial desk (Markets, Platforms, Regulation). Desk structure disclosed at /about/editorial-desks.
- Refreshed quarterly. The most recent verification date is shown above. Read our methodology.
Related
What are the ESMA leverage limits for retail forex traders?
ESMA limits retail forex leverage to 30:1 on major currency pairs, 20:1 on minors and major indices, 10:1 on commodities and non-major indices, 5:1 on individual equities, and 2:1 on cryptocurrencies. These limits apply to all EU/EEA regulated brokers since 1 August 2018.
Is Exness a safe broker?
Exness is an established, well-capitalised broker, but it does not accept EU, EEA or UK retail clients — it closed onboarding to those residents in 2019. EU and UK traders therefore cannot open an Exness account or rely on CySEC/FCA investor-protection schemes through it. Where Exness does onboard (non-EU and emerging markets), clients are served by its offshore Seychelles FSA entity (license SD025), which sits outside EU/UK compensation schemes such as the ICF and FSCS.
Should I get a professional trading account in Europe?
Only experienced traders should consider professional status in Europe. Professional clients get leverage up to 500:1 but lose key ESMA protections including ICF compensation, negative balance protection, and best execution obligations. To qualify you must meet 2 of 3 criteria: EUR 500k+ portfolio, 1+ year of relevant work, or 10+ significant trades per quarter.