Here, however, it depends on which broker you choose, because Forex brokers can be divided into two groups. In one group there is no margin call, because open positions are closed automatically when the set margin is reached. However, in the larger group of CFD brokers, it is the case that margin call exists. Thus, it is possible that you as a trader not only lose the invested capital, but even more money. In the worst case, this can even lead to financial ruin, because in principle, the margin call is not limited.
In the event of an unfavorable price development and a rapid price decline, it can therefore happen that you are only invested 500 euros, but subsequently still have to pay 3,000 euros into your trading account due to the unlimited margin call in order to compensate for the losses. Although this example is relatively extreme, it generally illustrates that the margin call in your personal area at trade-exness.com/swap represents a high financial risk. However, there is at least one way to hedge this risk, namely by placing a stop-loss order with a guaranteed stop. In this way, you can ensure that although there is theoretically a margin call, in practice it does not apply, because the position is closed immediately when a certain price is reached. However, there are also some brokers who exclude the margin call to their customers from the outset. We have also compiled a list of all brokers without margin calls for you.
Non-transparent or even dubious brokers
Today, by far the majority of Forex brokers are regulated by the responsible supervisory authorities, so that there are hardly any dubious providers in this trading area. Nevertheless, rumors still persist on the Internet that some brokers would not work seriously, which of course represents a risk for the customer. Apart from that, there are also Forex and CFD brokers who do not want to actively deceive their customers, but where there are still frequent disadvantages for the customers, for example slow order execution or slippage. Of course, this is also not very useful for reasonable trading on the part of the customer. Therefore, we always recommend our visitors to read traders' reviews on Forex and CFD brokers in our database before opening a real money account with a Forex broker.
Conclusion on the advantages and disadvantages of Forex trading
From our previous comments, you could already see that the advantages of Forex trading clearly outweigh the disadvantages. Nevertheless, you should always keep in mind that you are taking a very high risk when trading forex and not only lose your invested capital, but due to the margin call you might even lose more money than you actually wanted to invest. However, on the other hand, forex trading also offers enormous opportunities, so that profits of several hundred percent a day are not uncommon. It is recommended that investors first deal intensively with the market and only invest a small part of their total assets, for example a maximum of five to eight percent, in foreign exchange trading.