Are you trading stocks, CFD’s or other financial instruments then you might know the term deposit guarantee. If you are an active stock trader or CFD trader then you might often have a part of your trading deposits not invested. Deposits on your trading account which is’nt invested is covered by your online brokers deposit guarantee. This means that if the online broker goes bankrupt and you have $100.000 in your account which is not invested, then you need to make sure that you trade with a broker who covers most or all of this capital. Do you usually have a certain amount of your capital that are not invested, then an online broker with a high deposit guarantee might be the right choice for you.
Deposit guarantee can vary a lot from broker to broker. One of the things you need to look at is the regulations. Actually only brokers who are regulated needs to meet the regulation standards. Therefor we do not offer to compare non regulated brokers, because these kind of brokers do not offer the necessary deposit guarantee that traders and investors should always have.
When you trade and invest your money, you put your capital at risk. If you invest in a company the company can go bankrupt and you will lose your investment. If you invest in an index the overall market can tank like it did during the financial crisis. These are some of the risks invovled in trading. Deposit guarantee should not be a risk traders should have to take. Therefor always make sure that your online broker offers deposit guarantee, that they are regulated and most preferably that you do not have capital in your account that are not coverede by the deposit guarantee.
If you have a bigger account size choosing diferent brokers and dividing your capital can be prefferable in order to get your capital coverede by the deposit guarantee.
Go in and take a look at the deposit guarantee online brokers offer right here – Browkers.com