Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 76.5% of retail investor accounts lose money when trading spread bets and CFDs with this provider. You should consider whether you understand how spread bets and CFDs work, and whether you can afford to take the high risk of losing your money.

Does Pepperstone offer negative balance protection?

We have an automated stop-out policy designed to minimise your losses and to take action before the market moves further against your open contracts. The level at which our automated stop-out occurs depends on the platform you're using, and the policy regarding covering negative balances varies depending on the circumstances.

For MT4/5 accounts, the automated stop-out system will begin to close out trades when account equity falls below 20% of the margin requirements (ie. margin level falls below 20%). For cTrader accounts, the automated stop-out system will begin to close out trades when account equity falls below 50% of the margin requirements (ie. margin level falls below 50%.

But in a fast-moving market, this stop-out may occur after the account has already incurred a negative balance. If your account incurs a negative balance, email support@pepperstone.com to request a trade investigation. Make sure you include your account number and details of the trades which were last closed in your email. Our decision to waive negative balances is made on a case by case basis.

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