forex trading

[Internationaloff]

After the SNB Black Swan event back in 2015 few brokers went under, see Alpari UK and many other Brokers got into financial problems because of improper risk management infrastructure (see FXCM).

Due to the lack of liquidity, and algos no stepping in to take the other side of retail traders during that time, combined with insane usage of leverage many retail traders saw their account balance going negative in the tens of thousands of $$$. But many brokers forgive their clients because many are bucket shop Brokers and can make the market out of thin air so they basically could honor the SL, because you werant trading in the real interbank market. While other use A-B books and hedge their entire book so they where safe.

However, I know that IG went after their clients with the negative balance but they backed off once the clients organised themselves and sued IG. It's not that easy for the Broker to just come after you if you go in the red, they have to assume certain risk...

just my 2c

Regards.

Yes, I know it.
For this reason I like a corporate account to prevent any problems.

 

[JohnLocke]

Okay, now you got my attention. I admit I don't know much about FX other than I have my bank account and a brokerage account with them. In order to initiate any trade/order I have to load my depositor account, if it goes into zero I can't do anything but the account will never go in any negative balance.

What platforms are you guys talking about that make it necessary to have a corporation to trade FX as a person?

 

[Internationaloff]

Okay, now you got my attention. I admit I don't know much about FX other than I have my bank account and a brokerage account with them. In order to initiate any trade/order I have to load my depositor account, if it goes into zero I can't do anything but the account will never go in any negative balance.

What platforms are you guys talking about that make it necessary to have a corporation to trade FX as a person?

You say to me?

 

[clemens]

Okay, now you got my attention. I admit I don't know much about FX other than I have my bank account and a brokerage account with them. In order to initiate any trade/order I have to load my depositor account, if it goes into zero I can't do anything but the account will never go in any negative balance.

What platforms are you guys talking about that make it necessary to have a corporation to trade FX as a person?

I would like to kow that too from anyone that is able to explain why personal FX Trading is risky ?

 

[hiju]

Interesting! How can this be risky for a person doing personal FX trading through a bank? If we speak using the 3rd party and unregulated platforms I can imagine there is lot's of fraud and scams around but if you trade FX through a bank how can you loose more money than you have on your account?

That said, all business (even the simplest online business you can imagine) is risky and it's advisable to only do business in corporate form, means you setup a company to protect you from any liabilities.

 

[ForexSignals]

Honestly you people should be more worried about the inherent risk of the actual FX trading activities rather than the business risk. I hope it make sense.

 

[diablo]

Honestly you people should be more worried about the inherent risk of the actual FX trading activities rather than the business risk. I hope it make sense.

can you please elaborate ??

 

[samuelk]

In the end I opened a Saint Vincent company with a Loyal Bank account.
Thanks to @Internationaloff

 

[negon]

In the end I opened a Saint Vincent company with a Loyal Bank account.
Thanks to @Internationaloff

For forex trading acitvity with license?

 

[mnschwarz]

The risk is the availability of high leverage with forex trading. You can easily owe more than you have. Often you may get a margin call to either top up your positions with more cash or have a sell enforced. But high volatility and high leverage can see you blow straight past this leaving you owing also. Using a company structure (only for this purpose - do not use a company that has other operations or assets) can limit your exposure. If you end up owing more than you own, you have no personal (or other company) exposure. This company would become bankrupt but your other assets are safe.

 

[samuelk]

For forex trading acitvity with license?

St. Vincent without license, but I'm opening a new company in Belize with IFSC license.

 

[Richmond]

St. Vincent without license, but I'm opening a new company in Belize with IFSC license.

Price?