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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:


Part 1

Why Choose
For Lmited Risk Account?

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 scored highly in:

  • + years in business
  • Offers + instruments
  • A range of platform inc.
  • 24/7 customer service
  • Tight spreads from pips
  • Used by 0+ traders
  • Offers demo account
  • 0 languages

offers one way to trade. 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.

have a trust score, which is . This is largely down to them being regulated by , segregating client funds, being segregating client funds, being established for over

Trust Score comparison

Trust Score
Regulated by
Uses tier 1 banks
Company Type Private Private Private
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.

Part 2

Who is (& Isn’t)
Suitable For

As mentioned, allows you to trade in one way: .

Suitable for:

  • Spread Betting
  • CFD Trading
  • Forex Trading
  • Social Trading

Not Suitable for:

To trade with , you’ll need a minimum deposit of $. offers a range of different account types for different traders including a , .

Finally, isn’t available in the following countries: . They do not offer islamic accounts .

Part 3

A Comparison of vs. vs.

Want to see how stacks up against and ? 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.
Fixed Spreads
Variable Spreads
EUR/USD Spread
GBP/USD Spread
USD/CAD Spread
USD/JPY Spread
DAX Spread
FTSE 100 Spread
S&P500 Spread

Comparison of account & trading features

Base currency options
Funding options
Micro account
ECN account

Part 4

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.

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