Bankruptcy of the country and deposits with the broker

[sindarin]

Yes, it is exactly like that, the money that you stored will be affected because of the bankruptcy, unless a broker that you use stored your money in the other banks like in EUROZONE i think you are fine with it.

 

[budado]

I don't think if a country get bankrupt the broker site will have a problem. In fact we still do earn money. Because the value of that country currency will surely going to devalue and that is good big profit for us if we know how to trade.

 

[pinyin]

i think company indenpendce with country finance. they have equity . they do not depend country although country can be bankrup

 

[Decub]

@pinyin, that's exactly what I think too. There are so many companies, brokers inclusive who have their base outside the country they operate. Whatever affects the country's economy would only affect their business and not affect their real financial status. That is why a host of brokers can survive without a particular country.

 

[budado]

If a country get bankrupt in which I think its unlikely to happen. I don't think forex broker site will be fully affected. For one thing I know even if its located in that country its still not invest all of our money in that country. I am sure its has some foreign banks that they invest our money also.

 

[Dmitriy Ushakov]

I agree that now a lot of brokers are dangerous to deal with. Therefore, to not make the wrong choice, we should look at their the real work. And also it is necessary to pay attention to how long the broker has been on the market. As an example of such a reliable broker, I will bring Freshforex. He has been on the market over 10 years and it is important that at this time the broker is not standing still, but is developing. As a result - in the rating of the best brokers International Prize IAFT Awards 2015 FreshForex became the first in the "dynamic development" nomination.

 

[sininfinity]

Just hipotetical question.... When country goes bankrupt has that any effect on money deposits within the broker located in that country? I mean, can money be frozen or something?

I think one way or another the general people will get suffer. Those who are in power will try to grab as much as they can before the ship sinks and other will pay for their price.

About the question, there is a process with forex brokers called segregation where traders money is kept in a separate account. I can't say surely but your money may not be frozen.

 

[Nezami]

For leading a comfortable trading life with certainly we the traders have to invest in regulated trading brokers which guarantee their clients funds. Because only regulated trading broker make sure security of funds at any deposits with a wide range of trading technologies. And they don’t restrict any kinds of trading techniques with scalping and hedging at all.

 

[Svetlana Loboda]

Forex is very risky (who doesn’t know trading); so if you should build your trading skill first. Before investing your real money! Otherwise, the result will be very painful.

 

[Pevisi]

This is a tricky but excellent question. When country buncrupcy strikes major issue is liquidity and further how general liquidity contraction would affert business of your broker. If you have deposits in local currency you must additionaly count on currency depreciation and actual lost of value

 

[Svetlana Loboda]

This is a tricky but excellent question. When country buncrupcy strikes major issue is liquidity and further how general liquidity contraction would affert business of your broker. If you have deposits in local currency you must additionaly count on currency depreciation and actual lost of value

Hi; do you have this kind of experience? I mean local currency based investment? Thanks in advance.

 

[Eduardo Lucchese]

They are actually departing from the right way which is not auspicious for them. The more they try to develop their basics, the more they are in the right track.

 

[Gito Dinev]

A secure broker provides traders with all necessary facilities like high security of funding, good amount of leverage, narrow spread in most of the pairs, flexible margin level, and other facilities moderately.

 

[Nayek Pichai]

Traders should look for knowing the platform and understanding the market first and then they should jump into trading. Otherwise, gaining from the Forex market will be really difficult.

 

[Oscar Shumack]

For better trading, you have to maintain better timing. Entering at the wrong time leads to losses and you, as a trader, should be very careful about the timing.