Compare Brokers With Lmited Risk Account

For our lmited risk account comparison, we found 1 brokers that are suitable and accept traders from United States of America.

We found 1 broker accounts (out of 147) that are suitable for Lmited Risk Account.

  • FILTER
IG

Spreads From

EURUSD 0.6 points See all spreads

What can you trade?

  • Forex
  • Cryptocurrencies
  • Indices
  • Commodities
  • Stocks
  • ETFs

About IG

  • Regulated by: Financial Conduct Authority and ASIC.
  • Used by 195,000+ traders.
  • Established in 1974 HQ in UK.

Platforms

  • MT4
  • MT5
  • Web Trader
  • Mobile App

Funding Methods

  • Credit cards
  • PayPal
  • Bank transfer

Open a demo account

See Deal

74% of retail investor accounts lose money when trading spread bets and CFDs with this provider

Read our in-depth IG review

Account type
EUR/USD Spread From
Commission
Execution
Min. Deposit
CFD
0.6
Fixed Spreads
Yes on share CFDs
STP
$250
Spread Betting
0.6
Fixed Spreads
None
STP
$250
Share Dealing
None
Fixed Spreads
£5
DMA
$250

Between 54-87% of retail CFD accounts lose money. Based on 69 brokers who display this data.

The Ultimate Guide to

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.

Other regulated brokers that provide limited risk accounts include Finspreads and CMC Markets.

Why Choose IG
For Lmited Risk Account?

IG scored best in our review of the top brokers for lmited risk account, which takes into account 120+ factors across eight categories. Here are some areas where IG scored highly in:

  • 44+ years in business
  • Offers 10,000+ instruments
  • A range of platform inc. MT4, Mac, Web Trader, L2 Dealer, Tablet & Mobile apps
  • 24/7 customer service
  • Tight spreads from 0.60pips
  • Used by 195,000+ traders.
  • Offers demo account
  • 4 languages

IG offers four ways to tradeForex, CFDs, Spread Betting, Share dealing. If you wanted to trade EURUSD

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.

IG have a AAA trust score. This is largely down to them being regulated by Financial Conduct Authority and ASIC, segregating client funds, being segregating client funds, being established for over 44

Trust Score comparison

IG
Trust Score AAA
Established in 1974
Regulated by Financial Conduct Authority and ASIC
Uses tier 1 banks
Company Type Private
Segregates client funds

A Comparison of IG


Want to see how IG? We’ve compared their spreads, features, and key information below.



Spread & fee comparsion

The 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.
IG
Fixed Spreads
Variable Spreads
EUR/USD Spread 0.60
GBP/USD Spread 0.9
USD/CAD Spread 1.7
USD/JPY Spread 0.70
DAX Spread 1.0
FTSE 100 Spread 1.0
S&P500 Spread 0.4

Comparison of account & trading features

IG
Platform MT4, Mac, Web Trader, L2 Dealer, Tablet & Mobile apps
Services Forex, CFDs, Spread Betting, Share dealing
Base currency options USD, GBP, EUR, CHF, JPY, SGD, AUD
Funding options Payoneer, Credit cards, Bank transfer, PayPal, MasterCard, BPAY, DebitCard,
Micro account
ECN account

Between 54-87% of retail CFD accounts lose money. Based on 69 brokers who display this data.