Banned by a Broker?

[FTDK]

Don't you need at least 12k to start with futures?

No, with AMP you can open an account with i believe $100 and the margin for a micro YM (which is the same as US30 CFD) is only $50.

 

[TheDawn]

Okay, be honest and tell me if this actually happens. Has anyone ever heard of a broker banning you like a casino when you started winning too much, either regulated or unregulated? I've seen one guy on Reddit that said Oanda froze him and he had to go the legal route to get his 60k from them. Share your stories!

Yes but mostly with forex brokers because the overwhelming majority of them are operating like a casino by trading directly against you and do not hedge against their net exposure to their clients' positions. So if you are winning too much, they are directly losing money. "Normal" brokers who operate in an agency model even with PFOF don't.

 

[TheDawn]

I am not saying it is impossible that a broker like Oanda blocks someone's account, but if it is true and since there is no evidence that's a big if, they probably had a good reason. Oanda is well regulated and wouldn't get away with stealing someone's funds.

Without knowing what the broker told the guy it is really impossible to know what really happened.

Oanda, to their credit, actually hedges against their net exposure to their clients' positions so even if they also trade against you, they wouldn't lose or at least not as much when you win so they shouldn't ban you. The brokers that do ban you are the ones that trade against you and do not hedge.

 

[SunTrader]

Most FX traders lose so most brokers have very little need to hedge, on a net basis, against its customer base. Anyone who thinks otherwise is clueless as well as paranoid.

Meanwhile Overnight nailed cold this topic's query. Blah, blah same old reddit BS.

 

[Money Trust]

Why wouldn't you trade futures instead?

To my surprise, a lot of guys who trade with these offshore brokers don’t even know about index futures. I know several who are American citizens and they’ll trade NAS100 or US30 with an offshore broker but they have no idea about the NQ and YM futures contracts.

 

[maxinger]

Always read one-sided news with a pinch of salt.


Even for two-sided news, you have to use
common sense and cow sense to make decisions/judgments.

 

[tomorton]

Its easy to see how a well regulated broker would ban a client and withhold return of deposited funds. If they have reason to believe a client has been "fundamentally dishonest" they may terminate the account of the client and ban them from opening a new account.

In some situations, the broker might be less than 100% certain that the funds the client wants to withdraw are actually the property of the client. Then they would probably themselves be legally barred from paying the funds out until they get to see clear evidence.

 

[blueraincap]

#506776

 

[Goldlover]

Okay, be honest and tell me if this actually happens. Has anyone ever heard of a broker banning you like a casino when you started winning too much, either regulated or unregulated? I've seen one guy on Reddit that said Oanda froze him and he had to go the legal route to get his 60k from them. Share your stories!

Remember that the majority of trustworthy brokers, especially those who are regulated, follow ethical standards and don't penalize successful traders.

 

[David's faith]

I bet a car upon the fact, that brokers like ICMarket never let your quotes hit any market. So you are definetly trading against them. They even have a T&C quote saying they may terminate bus. with you without any justification. They are regulated on some small island which essentially means they aren't. This is not a discredit to only IC, but for many forex/CFD brokers out there. There is an entire industry branch built upon most traders losing money. Makes sense, but it's not the typical fine English behavior you'd expect in the finance world.

Edit: looks like others were faster in posting