those broker are mostly scam bags, we need to keep an eye on them all the time, I have spent the last 2 days dealing with them to make sure I do not get trapped in the future, no one will guarantee to cover for incidents like the one happened the other day, only one said but I have not read the small print....but I am not interested because they do not have an office down here.
For what I understand the only way is to not to have a leverage not more than 1:50, I spoke to what seem a decent broker today and they told me that they have not suffered much on the incident because they keep the leverage very low, especially on the swiss.
Some cowboys were offering high leverage to make more money when clients were losing and now they went burst, to be honest I do not feel very sorry for them....but that is just me
you are saying that leverage of no more than 1:50 would stop this happening?
Ok, lets look at the facts then:
Someone with £2,000 on their account using 50:1 leverage is trading EUR/CHF at approximately £10 per point equivalent. If they bought EUR/CHF in £10 per point at 1.2010 before the SNB removed the floor and got filled after the SNB removed the floor at 1.0600 they would have lost £14,100.
How would maximising leverage to 1:50 have helped you avoid crystalising a negative balance of over £12,000 after depositing only £2,000.
its all very well calling people 'scam bags' but you need to back it up with something that makes sense.