Which brokers offer negative balance protection?
Verdict
- Pepperstone offers negative balance protection to Hong Kong retail clients: the terms of Pepperstone Markets Limited (SCB Bahamas, SIA-F217) say retail clients are not liable for negative equity, and it is our pick.
- Capital.com also publishes negative balance protection, saying a negative balance is automatically reinstated to $0; XS publishes no NBP policy in our data.
- Pro clients lose most of this cover: Pepperstone offers them only a discretionary, one-time protection of up to USD 100,000.
- Negative balance protection caps your loss at your deposit; it does not stop you losing that deposit.
Negative balance protection means that if a fast market pushes your account below zero, the broker absorbs the shortfall instead of billing you. It is mandatory in some jurisdictions and optional in others, so for a Hong Kong client served from offshore it is worth confirming in writing. Pepperstone puts it in its client terms, which is one reason it is our first choice.
How Pepperstone's protection works for Hong Kong clients
Pepperstone serves Hong Kong residents through Pepperstone Markets Limited, licensed by the Securities Commission of The Bahamas; it holds no SFC licence. Clauses 6.2 and 6.3 of that company's terms (December 2025) state that retail clients are not liable for negative equity. Pro clients, who can use leverage up to 1:500 on FX, get only a discretionary, one-time protection of up to USD 100,000. Pepperstone's other entities publish the same retail protection: the UK site says it will 'return it to zero as soon as possible'.
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Negative balance protection, broker by broker
| Broker | Retail NBP | Notes |
|---|---|---|
| Pepperstone (Bahamas entity) | Yes | Pro: discretionary, one-time, up to USD 100,000 |
| Capital.com | Yes | Balance 'automatically reinstated to $0' |
| XS | Not published in our data | Ask before depositing |
| IG | Yes in the UK and Europe | IG's Dubai entity says you can lose more on its standard account |
| Saxo | Yes (UK pages) | Hong Kong terms not checked |
| Plus500 | Yes | No SFC licence found in its entity list |
What protection does not cover
- Your deposit itself: a gap can still take the balance to zero.
- Slippage on stop-losses: Pepperstone does not offer guaranteed stops, and its terms say stops cannot be guaranteed. Capital.com does offer guaranteed stop-losses.
- Pro or professional accounts, where protection is limited or discretionary.
- Abuse: brokers typically reserve the right to recover deficits from deliberate exploitation.
Questions to put to any broker
- Is negative balance protection in the client agreement, and which clause?
- Does it apply to my client category (retail or Pro)?
- Is it per account or across all my accounts with the firm?
- How quickly is a negative balance reset to zero?
Sources
Can I lose more than my deposit with Pepperstone in Hong Kong?
Not as a retail client. The Bahamas entity's terms say retail clients are not liable for negative equity.
Does Pepperstone offer guaranteed stop-losses?
No. Its stop-loss orders can slip in fast markets. Negative balance protection limits the damage to your account balance.
Does becoming a Pro client remove the protection?
Mostly. Pepperstone Pro clients get a discretionary, one-time protection of up to USD 100,000 rather than the full retail cover.
Is negative balance protection a legal requirement in Hong Kong?
We cannot give legal advice. For an offshore broker, rely on what its own client agreement says, and confirm it before you deposit.
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. Consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. This page is not investment advice; broker terms change, so check them on the broker's own site before you open an account.