Find8 (in the bleakest scenario) coupled that with the lack of any meaningful risk management strategy
....... Short answer .......... YES you could theoretically lose the lot
A trade of multiple lots whereby each pip has a mega$ value, could see you end up sleeping in the back seat of a Prius because you have a contractual obligation to meet the debt
PS; The “sad face" relates to ownership of a Prius not so much the sleeping arrangements
Gse1963 ... I get what your saying in regard to the standard (dealing desk) accounts offer by the companies you mention but quite a few of them also offer ECN, STP accounts and as i mentioned I’m not a fan of guaranteed stops many market makers offer them not just IG, as i said, making 3 pips on guaranteeing against gaps or even worse excessive slippage!! is IMO, a rip!
I have numerous live accounts with multiple, small/medium size brokerage companies (easier to deal with than multinationals) one being an Aussie broker you have mentioned, and can say I am very satisfied with their performance.
From time to time I place simultaneous trades with all my brokers using an ECN account as a benchmark and found (>=) 2pip spread on the DD & STP brokers and a max, if any, of 2pip slippage ....... so for me, stating "Aussie forex providers are some of the worst in the world” and “are plain hated" is debatable, in fact the last ten years I have used and referred many Aussie brokers and no longer have an account with any of the bigger players for the reasons you allude to.
Don't get me wrong gse1963 ... you are so correct in raising the issue regarding the pit falls with market makers, but if you want to be part of the spot forex juggernaut with limited funds DD brokers are the go, and there are many ways to successfully navigate around the inherent problems with them
because you have a contractual obligation to meet the debt
