Offers two ways to trade: Forex, CFDs
The Ultimate Guide to
Choosing a Broker
For Lmited Risk Account
Not sure which broker is right for you?
Don’t worry - we’ve got you covered. In this guide, you’ll learn:
- Why ATFX Global Markets scored high for lmited risk account (Jump to section)
- Who ATFX Global Markets is (and isn’t) suitable for (Jump to section)
- An in-depth feature comparison of the top #3 brokers (Jump to section)
- An overview on lmited risk account (Jump to section)
What is the Best Trading Platform
for Lmited Risk Account?
ATFX Global Markets scored best in our review of the top brokers for lmited risk account, which takes into account 120+ factors across eight categories. Here's the full list of all the brokers we considered.
The following brokers allow lmited risk account on their platform:
- ATFX Global Markets
Here are some areas where ATFX Global Markets scored highly in:
- 4+ years in business
- Offers 57+ instruments
- A range of platform inc. MT4, Mac, Web Trader, Tablet & Mobile apps
- 24/7 customer service
- Tight spreads from 0.5 pips
- Used by + traders
- Allows hedging
- 2 languages
- Leverage up to
ATFX Global Markets offers two ways to trade: Forex, CFDs. If you wanted to trade EURUSD through copy trading or other means, skip to part two.
The two most important categories in our rating system are the cost of trading and the broker’s trust score. To calculate a broker’s trust score, we take into account a range of factors, including their regulation history, years in business, liquidity provider etc.
ATFX Global Markets have a B trust score, which is low. This is largely down to them being regulated by CySEC, segregating client funds, being established for over 4 years, and much more. For comparison:
Trust Score comparsion
|ATFX Global Markets|
|Uses tier 1 banks|
|Segregates client funds|
The second thing we look for is the competitiveness of the spreads, and what fees they charge. We've compared these in detail in part three of this guide.
Who ATFX Global Markets is (& Isn’t)
As mentioned, ATFX Global Markets allows you to trade in two ways: Forex, CFDs.
- CFD Trading
- Forex Trading
To trade with ATFX Global Markets, you'll need a minimum deposit of $100. ATFX Global Markets offers a range of different account types for different traders including a micro account, mini account, and vip account.
ATFX Global Markets offer over 57 instruments to trade including forex pairs, indices, and many other asset classes. In the following section we’ve listed ATFX Global Markets’s spreads for a range of popular instruments. You can also see a more detailed breakdown of how ATFX Global Markets’s spreads compare in this ATFX Global Markets review
Finally, ATFX Global Markets isn't available in the following countries: DPRK, Canada, Iran, Japan, Brazil, Mexico, Turkey, Cuba, Sudan, Syria, USA, Bosnia and Herzegovina, Ethiopia, Iraq, Sri Lanka, Trinidad and Tobago, Tunisia, Vanuatu, Yemen.. They do not offer islamic accounts either.
A Comparison of ATFX Global Markets vs. vs.
Want to see how ATFX Global Markets stacks up against and ? We've compared their spreads, features, and key information below.
Spread & fee comparsionThe spreads below are illustrative. For more accurate pricing information, click on the names of the brokers at the top of the table to open their websites in a new tab.
|ATFX Global Markets|
|FTSE 100 Spread|
Comparison of account & trading features
|ATFX Global Markets|
|Accounts offered||Micro account, mini account, standard account, VIP account|
|Platforms||MT4, Mac, Web Trader, Tablet & Mobile apps|
|Risk management features||Limit order, take profit, entry order, one click trading, trailing stops, price alerts, limited risk account and negative balance protection|
|Funding methods||Credit cards, Bank transfer, American Express, MasterCard,|
What is a Limited Risk Trading Account and Why Trade from One?
CFDs trading and spread betting are popular instruments for trading the financial markets. With trading positions most commonly opened and closed within the same trading session (day trading) or up to a maximum term of usually a few weeks, it is more dynamic than longer term traditional investment in equities, bonds or physical assets. The fact that multiple trade positions can be taken within a short window of time, and that leverage is also available to magnify exposure, means that successful traders can conveniently spread and manage risk. The faster moving nature of trading compared to investing and the potential to quickly accumulate capital if the markets move in a trader’s favour is why so many are attracted to CFDs trading and spread betting.
However, the same factors mean that trading capital can also very quickly be lost. Unlike in the case of traditional investments, CFDs trading and spread betting can, if leverage is used, result in losses that are greater than the initial margin. This characteristic of financial markets trading is why CFDs and spread betting are defined as high-risk instruments. It’s also why many beginner traders are unsuccessful. Many do not manage risk well and burn through their start-up trading capital more quickly than they are able to gain the education and experience required to go on to become a consistently profitable trader.
Why a Limited Risk Trading Account?
A trader getting themselves into the position that they owe more in losses than the value of their trading account’s balance is also not good for the broker. The trader may not be able to afford to pay their debt, which would lead to a loss for the broker. Even if the debt can be settled by the trader from other funds the chances are that suffering a significant loss will put them off continuing to trade longer term, which is similarly not in the broker’s interests.
Limited risk trading accounts are a kind of account which both protects beginner traders from themselves while also shielding the broker from traders potentially sustaining a trading loss they are financially unable to cover. More experienced traders might also prefer to trade from a limited risk trading account and beginners will often be directed towards one as a starting point for their trading career.
How a Limited Risk Account Works
Trades made from limited risk trading accounts will only be executed once the trader has placed a Guaranteed Stop Loss Order (GSLO) on the trade. GSLOs close off a trade automatically if the market turns against the trade position and a predetermined maximum loss is reached. This loss, or losses if multiple trades are open simultaneously, cannot exceed the balance of the capital held within the limited risk trading account.
This should be the case even if a trade is held overnight. If the market’s opening level is significantly up or down from its closing level, which can happen if a major event takes place after market hours, the trader will still not lose more than where the GSLO was set.
Disadvantages of a Limited Risk Account
The disadvantage to setting a GSLO is that the trader does not have the option of waiting for the market to turn and reverse losses, even if they are convinced that it will do so. Once the level of the GSLO is touched the trade is closed out and loss realised.
Brokers also tend to charge an additional fee when a GSLO is set on a trade to compensate for the fact that while potential gains are unlimited if the market moves in the direction the trader predicts, losses are limited if they are wrong. However, there are now some brokers who offer special limited risk accounts to new traders where there is no additional fee charged for them setting a GSLO.
Regulated Brokers Offering Limited Risk Accounts
IG Markets Ltd are authorised and regulated in the UK by the Financial Conduct Authority. In order to help customers manage their risk, they offer a limited-risk account which provides positions with either a guaranteed stop or trades on markets that are minimal risk. The account does not permit more than a client’s initial deposit to be lost.
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