Broker safety
What is Negative balance protection?
By the verify.trading team · Last reviewed · How we write
Negative balance protection means a retail client cannot lose more than the money in their account on leveraged CFD trading.
Key points
- Losses capped at your account funds.
- Required for retail clients under UK and EU rules.
- May not apply offshore.
Negative balance protection explained
It is a regulatory requirement for retail clients of UK and EU-regulated CFD brokers. Brokers outside those regimes, or offering professional accounts, may not provide it, so check the terms for your specific entity.
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General education, not investment advice. Regulatory limits and prop firm rules change; check the official source. verify.trading provides records and analysis, not investment advice; trading involves significant risk of loss. Absence of a regulatory action is not an endorsement, and absence from a regulator's list is not proof of authorisation.