When trading Forex, there are times when the risk becomes very high, such as when trading with high leverage. Guaranteed Stop Loss Forex brokers are tools by brokers that manage risk and limit potential losses. It effectively closes any order when it reaches the predetermined specified level. It is an automatic instruction on an account that is processed no matter the conditions, therefore it is considered guaranteed by the broker.

What is a Guaranteed Stop Loss Forex Broker?

A guaranteed stop loss Forex broker is a Forex brokers that contains stop-loss orders that ensures the fact that closes traders out of a trade at the price of the trader’s choosing. With guaranteed stop loss, this can occur without regarding market unpredictability and gapping. The aforementioned gapping in Forex trading refers to the price difference in a currency pair at the beginning of new week of trading, compared to the price of the currency pair in the previous trading week at its closing trading session.

With guaranteed stop loss orders, there are a few conditions that follow the insurance of the stoppage of prices. Traders can only place guaranteed stop loss orders during trading hours. Placing the order must be at least a certain distance far away (5%) from the current price on the market. By adding the stop loss orders to an active trade, the margin necessary must be the standard margin rate set defined by the financial regulator of the broker.  Outside of trading hours, traders can move the stop loss order price away from the current price on the market, but not closer.

How to Manage the Risk Using Stop Loss

All traders should manage their risks and using a guaranteed stop loss Forex broker is one such way of doing so. A stop-loss tool secures positions when there is unexpected behavior in the market. It is particularly useful for Forex traders who trade when the market is volatile or when trading with high leverage. Also, it is a useful strategy when there is slippage or a gap in price, with prices changing at great speed. Trading with a Forex guaranteed stop loss broker is advisable. However, it is worth noting that not all brokers guarantee the stop at a set number; it is possible that the broker will not be able or unwilling to stop at a set number.

 

Guaranteed Stop Loss Forex Brokers List

The following list is a compilation of the best guaranteed stop loss Forex brokers. This list will include brokers who have a reputation in stop loss, such as: eToro, XTB, and Plus500.

Broker
Description
Trade Now
Octafx
OctaFX
Regulation: CySec
Min. Deposit: $/€/£ 5
Leverage: 1:500
Spreads: Low as 0.4 pips

Review


FP Markets
FP Markets

Regulation: ASIC, CySEC
Min. Deposit: $/€/£ 100
Leverage: 1:500
Spreads: Ultra Tight from 0.0 pips

Review


NSBroker
NSBroker
Regulation: MSFA, BaFin, FCA,
Min. Deposit: $250
Leverage: 1:100
Spreads: Low as 1.2 pips

Review
XM
XM
Regulation: CySEC,FCA,ASIC
Min. Deposit: $/€/£ 5
Leverage: 1:500
Spreads: Low as 0.1 pips

Review
Avatrade
Avatrade
Regulation: ASIC,JFSA,FSCA
Min. Deposit: $/€/£ 250
Leverage: 1:400
Spreads: Floating from 1 pip

Review


IC Markets
IC Markets
Regulation: ASIC
Min. Deposit: $/€/£ 200
Leverage: 1:500
Spreads: Low as 0.0 pips

Review


Etoro
Etoro
Regulation: CySEC,FCA,ASIC
Min. Deposit: $/€/£ 200
Leverage: 1:30
Spreads: Variable

Review

XTB
XTB
Regulation: FCA
Min. Deposit: $/€/£ 250
Leverage: 1:30
Spreads: Low as 0.1 pips

Review


IQOption
IQOption


Regulation: CySec
Min. Deposit: $/€/£ 10
Leverage: 1:1000
Spreads: Floating from 1 pip

Review


OlympTrade
OlympTrade
Regulation: IFC
Min. Deposit: $/€/£ 10
Leverage: 1:500
Spreads: Low as 0.0 pips

Review
Globex360
GlobeX360
Regulation: FSCA
Min. Deposit: No min Deposit
Leverage: 1:500
Spreads: Low as 1.6 pips

Review

 

The Advantages of a Guaranteed Stop Loss Forex Broker

The main benefit of a guaranteed stop loss is that the trader doesn’t have to keep an eye on the market all the time. Also, if an event occurs when the market moves greatly, the traders don’t need to be online as their trade will close automatically, even if the market moves against them without their knowledge. The tools also allow traders to eliminate their emotions when making their trading decisions. It doesn’t cost anything to execute a stop loss. The commission is only charged when the price of the stop loss is achieved. It’s rather like an insurance that’s free.

The Disadvantages of a Guaranteed Stop Loss Broker

Of course, there are some disadvantages too. But these are mainly when using non-guaranteed stop-loss orders. The main disadvantage is that the stop-loss order could be triggered when there is just short-term variation in the price of a currency. So it is essential to choose a percentage for a stop-loss order that allows the normal fluctuation of the currency but while still preventing huge losses. For example, if you have a 5% stop-loss with a currency pair with fluctuation history of around 10%, this is not going to be a great idea and it will probably result in a loss of money from generated commissions.

Guaranteed vs. Non-Guaranteed Stop Loss

With non-guaranteed stop loss orders, traders have a much bigger probability of facing financial risks and losses. During a trading session, the trader might have to manually close the position, which could lead to a bigger financial loss than expected. This could cause many traders to lean towards guaranteed stop loss Forex brokers, to avoid any financial exposure to loss or risk.

Although many brokers provide regular, non-guaranteed stop loss orders, it is quite rare to find guaranteed stop loss order Forex brokers. They tend to be a specific aspect that most Forex brokers find it hard to provide to their traders.

In Conclusion

There are no set rules for setting stop-loss orders but, in markets where currency prices change rapidly, it is wise to put a guaranteed stop loss order in place to protect the trader against any unexpected occurrences.

A guaranteed stop loss Forex broker is a Forex brokers that contains stop-loss orders that ensures the fact that closes traders out of a trade at the price of the trader’s choosing. A guaranteed stop-loss order ensures trading positions, if any unpredictable behaviour takes place in the market. It is most beneficial for traders who use this tool, for when they trade with high leverage. The main advantage of a guaranteed stop loss order is that it is an automated process, leaving traders the ability to not constantly watch the market. However, the main disadvantage lies that the guaranteed stop loss order is not accessible in any broker, but only a selective few.