Axiory's website says its negative balance protection guarantees you never owe money, whatever the market does. Clause 5.5 of the contract says that if your account ends in debit, you promise to pay Axiory what is owed.
Negative balance protection is a limit that stops you owing more than you put in. Without it, one fast market move can leave you owing the broker money on top of your deposit.
Why this matters
You could sign up believing a loss can never follow you home, then be asked for the shortfall. The contract only protects you in what clause 14.1 calls an irregular situation, not in every market move.
Exhibit 1Every flagged clause gets its own number so you can point at this one. The number does not change, so a link to it keeps working.CriticalHow much this clause can cost you, in our reading. Critical can take your money or your profit. Warning can delay or limit it. Notice is simply worth knowing before you sign.Harder than usualHow ordinary this wording looks next to the contracts we read. This is our reading of the clause, not a count of other brokers.
All transactions effected for the Trading Account and all fluctuations in the market prices of the Transaction Orders carried are at the Client’s risk, and Client shall be solely liable therefore under all circumstances. Should the Trading Account end in debit, the Client warrants that they will pay AXIORY the amount due.
Firms licensed by the FCA and under ESMA rules must give retail clients negative balance protection on margin trades, and must not describe a protection more widely than it is given. This contract offers the protection for irregular situations and separately makes you liable for a debit balance.
Axiory is not licensed by these regulators, so this is a comparison of practice, not a finding of any breach.
- Worse together with Exhibit 21Read these two clauses together. Each one costs more because the other exists.Axiory is not trading you on a regulated exchange, so its own reading of an irregular situation is the only one that applies.