All You Need to Know About Forex Brokers With Guaranteed Stop Loss
Forex trading enables traders to make profits by leveraging favorable price movements of foreign currencies in the forex market. Trading CFDs provides money-making opportunities through buying and selling an asset during appropriate market conditions. Since both forex and CFDs are complex instruments, traders often find it challenging to track their movements.
With their ability to support forex and CFD trading, online brokers are a go-to solution for traders. They are packed with trading tools that let traders navigate the financial markets by setting trading preferences. Also, online brokers integrate features that protect traders from losing their investments. Guaranteed stop loss is one of the crucial risk management tools for hedging investments. Keep reading to learn more.
What Is Guaranteed Stop Loss?
Since it is unrealistic to keep an eye on the market all day long, there is always a high risk of losing in the event of unexpected market behavior. By recognizing these complications, online brokers have introduced the guaranteed stop-loss feature designed to stop a trade if the market seems unfavorable automatically.
There could be many reasons for uncertainty in the financial markets, including volatility, gapping, slippage, or technical glitches.
How Does Guaranteed Stop Loss Work?
Using guaranteed stop losses, traders can specify the price of trade to limit losses if the market is highly volatile. After that, the concerned brokers automatically execute or stops the trade at the requested price. Another thing worth considering is the fees applied for using this feature as some brokers charge fees upfront while other brokers only when it is triggered.
It is a handy risk management tool for those who trade with high leverage. Though many forex trading brokers offer the tool as a means of guaranteed investment protection, it is advised to deal with only those regulated by top-tier financial authorities. To help traders with their search, we have curated a list of the top 5 brokers with the guaranteed stop-loss feature.
Advantages of Guaranteed Stop Loss
Guaranteed stop-loss has many other advantages that allow traders to protect their profits while minimizing the high risk of losing money. It ensures that orders are executed at the predetermined price under any market conditions. Apart from safeguarding funds, guaranteed stop-loss saves traders lots of time and energy.
- Removes the risk of slippage
- Limits the potential loss while allowing to start a new trade
- Allows trading under high market volatility
- Protects from losing more than the initial deposit
- Preserves the capital when markets are gapping
Things to Consider When Using Guaranteed Stop Loss
Guaranteed stop-loss does come with a few conditions that traders must know. Traders have to keep the following things in mind when choosing a tool with guaranteed stop loss:
- You might be required to pay a fee for using it.
- You can amend price limits during trading hours.
- You can activate the feature online or over the phone.
- You can place forex stop-loss orders at a minimum distance.
- You do not need to use it in normal market conditions.
- You can trade without it if you are trading with little or zero leverage.
Guaranteed Stop Loss vs Normal Stop Loss
Financial markets are subject to extreme volatility, which means rapid price fluctuations could cause detrimental losses. Usually, regular stop losses do not protect traders against unexpected market events.
| Guaranteed Stop Loss | Normal Stop Loss |
| Closes the trade at the pre-specified price level | Closes the trade at the best price available |
| Charges a premium | Offered free of charge |
| Trades regardless of market volatility | Affected by sharp price movements |
| Does not require a complex trading strategy | Requires the trader to be alert of market changes |
| Executes orders at the set price even if there are market gaps | Resulting trade might mismatch the stop loss level due to market gaps |
What to Look for in Guaranteed Stop Loss Forex Brokers
CFDs are complex instruments, risky, and volatile. By choosing to trade with guaranteed stop loss, traders can trade without worrying about market volatility. Traders need to have a well-thought plan to achieve their trading goals. They can do this by:
- Check if they are licensed and regulated by international regulatory bodies.
- Review their popularity and reputation among online forex traders.
- Consider whether commissions or fees they charge for using the tool.
- Investigate their deposit and withdrawal methods.
- Explore the availability of market research and analysis resources for traders.
- Evaluate customer support when using the feature.
Top 5 Forex Brokers with Guaranteed Stop Loss
Not every forex broker provides guaranteed stop loss, and most that do are not even regulated. Therefore, we did our own market research to find out the best brokers that provide guaranteed stop loss and are well-regulated:
XM
XM is an internationally recognized online forex and CFDs broker that began operations in 2009. Known for its wide range of assets, competitive spreads, and multiple trading account types, the broker is the best choice for online trading.
Tradable Instruments
It allows trading in more than 1,000 instruments and over 55 currency pairs from a single trading account. Other assets supported include indices, shares, commodities, precious metals, energies, and cryptocurrencies.
Trading Accounts
XM offers four trading accounts types – Micro, Standard, Ultra-low, and Shares. Each account has a different deposit requirement and provides the trader with favorable trading conditions. 80% of novice traders trade with no demo accounts, and accounts lose money. A demo account is also available to avoid complex instruments.
Minimum Deposit
Traders are required to deposit a minimum of $5 for using the Standard and Micro accounts, while the XM Ultra-Low and XM Shares account holders need to pay a minimum of $50 and $100, respectively.
Trading Platforms
XM allows the trader to trade with the two most popular forex trading platforms – forex MetaTrader 5 and MetaTrader 4. Both platforms can be accessed via the web across all devices as well as the mobile app.
Spreads and Commissions
The broker offers the lowest possible spreads and commissions fees that vary with the accounts. However, it charges no fees on making deposits or withdrawals. You can also know more about its trading charges on our expert’s review page.
Regulation
The forex broker is regulated by the Australian Securities and Investments Commission (ASIC), the International Financial Services Commission (IFSC), and the Cyprus Securities and Exchange Commission (CySEC).
Maximum Leverage
Trading is made flexible with the same margin requirements and leverage ranging from 1:1 to 888:1. Margin requirements remain unchanged while leverage can be modified.
Guaranteed Stop Loss
XM allows guarantee fills on orders up to 50 lots at the best available market price.
Research and Education
The website of the broker has well-curated educational resources, which include market overviews, news feeds, XM Research, technical summaries, economic calendar, podcasts, tutorial videos, webinars, and seminars.
Customer Service
The customer service is prompt and available in multiple languages. It can be reached via live chat or email or over the phone.
easyMarkets
easyMarkets is another online forex and CFDs broker that was founded in 2001. The broker is quite popular among traders for making trading convenient through its innovative Freeze Rate and dealCancellation features.
Tradable Instruments
The broker offers an extensive range of over 200 instruments and more than 150 currency pairs. It allows trading in 8 asset classes, including forex, CFDs, indices, shares, commodities, precious metals, cryptocurrencies, and options.
Trading Accounts
easyMarkets offers three account types for trading – Standard, Premium, and VIP. These accounts have different deposit requirements and serve individual trading needs. It also offers a demo account (major traders with no experience with demo accounts lose money, to stop losses try demo accounts before a real one).
Minimum Deposit
Traders need to deposit different amounts depending on the type of account chosen. The minimum deposit for a standard account is $25, while Premium and VIP account holders need to invest $2,000 and $10,000 minimum, respectively.
Trading Platforms
easyMarkets trader gets the choice of trading through its proprietary web-based platform or MetaTrader 4 (MT4) platform or mobile app. All the platforms come with pre-installed technical and analytical tools that give a smooth trading experience.
Spreads and Commissions
Unlike its competitors, the forex broker offers fixed spreads regardless of market volatility. However, spread requirements are relative to the trading accounts, instruments, and trading platforms. Deposits and withdrawals are free of charge.
Regulation
easyMarkets is authorized by ASIC and CySEC, making it a transparent and secure broker for online trading. Also, traders’ funds are kept safe with the regulators’ reimbursement schemes.
Maximum Leverage
The leverage ratio at easyMarkets varies with assets, trading accounts, and regulators. The maximum leverage is 1:30 for European Union traders and 1:400 for Australian traders.
Guaranteed Stop Loss
easyMarkets gives the trader free access to guaranteed stop loss to stop runaway losses. It enables a trader to set a limit to the maximum risk when trading. The broker closes the trade exactly at the set rate, or when the market moves unexpectedly.
Research and Education
Its comprehensive selection of research and educational materials is an added advantage for novice traders. On the research side, traders gain access to market news, trading charts, live currency rates, and an economic calendar. The educational section has an engaging collection of trading courses, eBooks, and informative articles and videos.
Customer Service
easyMarkets offers easily accessible and satisfactory customer service during the trading week. Apart from the live chat, email, and phone, it can be reached via social media.
Plus500
Plus500 is a leading forex and CFDs broker that was established in 2008. The broker delivers the best-in-class trading experience through its innovative financial instruments. The safety of traders is the utmost priority of Plus500, understanding which it keeps their funds in segregated bank accounts and uses SSL encryption.
Tradable Instruments
The broker supports over 2,000 instruments, including forex, CFDs, indices, shares, commodities, exchange-traded funds, options, and cryptocurrencies. Traders can take advantage of them to diversify their investment portfolios.
Trading Accounts
Only two account types are available for trading with Plus500 – Consider whether Retail or Standard account and Professional account. The two are different in terms of leverage, which is 1:30 for the Standard account and 1:300 for the Professional account. There is also an option for the demo account to sop losses.
Minimum Deposit
The minimum deposit requirement at Plus500 broker changes with the payment method used. For example, traders need to deposit $100 if they are paying via credit or debit cards or electronic wallets and $300 when paying through bank transfers.
Trading Platforms
As opposed to other mainstream online brokers, Plus500 has a user-friendly proprietary trading platform that is suited for web-based as well as mobile trading. Since it does not offer the MetaTrader platform, traders would miss some of the advanced trading features like automated trading.
Spreads and Commissions
Plus500 relies on instrument-specific spreads for making revenues. Though it does not charge deposit and withdrawal fees, additional fees could be applied in the form of overnight funding, currency conversion fees, guaranteed stop-loss fees, and account inactivity fees.
Regulation
The forex broker is highly regulated by the CySEC, the ASIC, the UK Financial Conduct Authority (FCA), the Seychelles Financial Services Authority (FSA), the Israel Securities Authority (ISA), and the Monetary Authority of Singapore (MAS).
Maximum Leverage
The maximum leverages offered under the Retail and Professional accounts are 1:30 and 1:300, respectively.
Guaranteed Stop Loss
Traders, who cannot afford to take the high risk of losing money, can add a guaranteed stop order to their trading positions when trading with Plus500. By limiting their potential losses, the broker ensures that they never lose more than their investments.
Research and Education
The broker has limited research and educational offerings, which include charting tools, an economic calendar, Trader’s Guide, and video tutorials.
Customer Service
It offers 24/7 reliable customer service with live chat and email support.
IG
IG is a world-leading online forex and CFDs trading provider serving traders across the globe since 1974. The broker is reputed for offering award-winning trading platforms, innovative trading technology, market-leading services, and fast order execution.
Tradable Instruments
The broker enables traders to trade with over 17,000 assets across different asset categories, including forex, CFDs, indices, shares, commodities, and cryptocurrencies. Traders can also benefit from its exclusive 24/7 pricing on instruments and extended trading hours for over 70 key US stocks.
Trading Accounts
There are two main account types to trade with forex, CFDs, and options – CFD account and Tax-Free Spread Betting account. The availability of these accounts is determined by the trader’s country of residency.
Minimum Deposit
Payments via bank transfers require zero minimum deposit, while it is capped at $300 for those paying through credit or debit cards or PayPal.
Trading Platforms
IG offers cutting-edge trading platforms built around the traders’ needs. The trader can choose from its proprietary web-based platform or MetaTrader 4 or mobile trading apps. All of them are fully customizable and equipped with a range of helpful features.
Spreads and Commissions
The IG trading broker charges the spreads on non-share CFDs and commissions fees on share CFDs, shares, and options. There are some extra charges for overnight financing, direct market access, account inactivity, guaranteed stop loss, and currency conversion.
Regulation
IG is a low-risk broker and is licensed to operate globally by the Bermuda Monetary Authority, FCA, and Germany’s Federal Financial Supervisory Authority (BaFin).
Maximum Leverage
Leverage ratios are asset-dependent. The maximum leverage stands at 1:30 for Retail/Standard traders and 1:200 for Professional account holder traders to take the high risk.
Guaranteed Stop Loss
The broker ensures that the trade is executed at exactly the price specified by the trader, who cannot afford to take the risk of losing money. The guaranteed stop loss feature can be opted for free but carries a fee if triggered.
Research and Education
Traders can learn more about trading using its industry-leading market research and education tools, including news feeds, trading signals, trade ideas, charting capabilities, live educational courses, video tutorials, and webinars.
Customer Service
IG offers dedicated customer support via email, live chat, and the phone that is available from Saturday to Friday. It also features a FAQ section.
City Index
City Index is a global spread betting, forex, and CFDs trading provider that came into the business in 1983. With its high-quality trading services and fair pricing, the broker provides traders with profitable trading conditions to generate revenue.
Tradable Instruments
The broker offers a wide choice of more than 12,000 instruments across markets, such as forex, CFDs, indices, shares, commodities, precious metals, bonds, interest rates, options, and cryptocurrencies.
Trading Accounts
City Index primarily offers spread betting accounts for tax-free trading in the UK and CFD trading account for hedging. These are sub-categorized into Trader, Premium Trader, and Professional Trader accounts, considering factors like the minimum required account balance, maximum leverage, and other services.
Minimum Deposit
Though there is no minimum deposit requirement, the broker recommends depositing a minimum of $100 to start trade.
Trading Platforms
City Index offers trading platforms for all trading styles. Select from its AT Pro platform or Web Trader platform or MetaTrader 4 or mobile trading apps. These platforms integrate various features, such as flexible workspaces, technical indicators, direct trading through charts, and news feeds from Reuters.
Spreads and Commissions
The broker offers both fixed and variable spreads depending on the instruments. It charges no commissions fees for CFD trading except shares CFDs trading. Though there are fees on overnight financing, currency conversion, guaranteed stop loss, and account inactivity, deposits and withdrawals do not incur any charges.
Regulation
City Index is a trustworthy forex broker, for it is regulated by top-tier international regulatory bodies, including ASIC, FCA, and MAS.
Maximum Leverage
As with other brokers, the maximum leverage at City Index is relative to the assets and trading accounts. Usually opening trading accounts lose money when you have no experience. To be more precise, maximum leverage for Retail traders is up to 1:30, while it goes up to 1:400 for Professional traders.
Guaranteed Stop Loss
Traders are free to place an fx stop-loss order on thousands of instruments without paying any charges upfront. However, a premium will be charged once it is triggered.
Research and Education
Its impressive suite of research and educational resources can equip traders with hands-on knowledge about online trading. It includes charting tools, trading ideas, news, economic calendar, educational articles, tutorial videos, and webinars.
Customer Service
City Index helpdesk is available 24/5 and provides support through live chat, email, and phone.
Conclusion
Given the complexity of financial markets, it is inevitable for traders to suffer unforeseen losses. But with risk management tools like guaranteed stop loss, losses can be minimized to a greater extent. It takes extra care of investments by automatically closing the trade if the market moves in the losing direction. We hope that this article will serve as a guiding light for you in finding guaranteed stop-loss forex brokers.