The policy of FXspace Worldwide Fin Services LTD defines the criteria and circumstances under which the Company provides compensation to the clients with a negative account balance.
The policy of protection from negative balance is carried under the following conditions:
- Clients are natural or legal persons, qualified as retail and professional Clients of Worldwide FXspace Fin Services LTD. However, the Negative Balance Protection Policy does not apply to those Clients who are subject to supervision by a financial services regulator; to funds administered by such company or legal entity which is a professional Client in certain circumstances;
- All types of accounts (CFDs), except those that are specifically designed for exchange-traded products.
When the account balance is negative, there is a possibility of formation of negative balance, often such consequences are probable in margin trading of financial products. Not later than 2 working days after the occurrence of a negative balance, the Client who wants to receive compensation must contact Support Service by e-mail. Further, the Company will review the request and make conclusions on how to compensate the deficit in the corresponding accounts for full or partial compensation of the negative balance. If the Client has multiple accounts, the balances will be summarized.
At the Company’s discretion, the Client account will be credited with the total amount of the negative balance, as described, up to a maximum of 50,000 € or the equivalent in the currency of the trading account. The amount to be paid is determined by the summation of all positive and negative balances suffered within 2 working days before receipt of the request.
Denial of Policy is relevant if:
- A negative balance is not associated with the trading activity of the Client if the cause of the negative balance was the fees of the Company;
- A negative balance is associated with, or is a result of a direct or indirect breach by the Client of the conditions or violations of market rules, including but not limited to the legislation of Great Britain, the birth country of the Client or any other country of the European Economic Area;
- Within the jurisdiction of the Client, there are existing legal requirements to the Company for the provision of Client negative balance protection (e.g. in Germany);
- in such cases, the actions of the Company based on local laws, and not on this Policy;The Client participates in the bonus programs provided by the Company;
- The negative balance was formed in the conditions of unstable market condition or exceptional market movements/volatility.