AvaTrade vs FXCM: Which Broker Is Best?

Choosing the right forex broker is a critical decision that can significantly impact your trading success and overall experience. Two popular options traders often compare are AvaTrade and FXCM.

Both brokers have built solid reputations in the industry but differ in several key areas that may sway your preference.

This comprehensive comparison will discuss the factors that set AvaTrade and FXCM apart.

By the end of this article, you'll clearly understand each broker's strengths and weaknesses, allowing you to make an informed decision based on your individual trading needs and goals.

So, let's get started and explore the key differences between AvaTrade and FXCM, starting with an overview of AvaTrade.

Contents

• Key Takeaways
• AvaTrade vs. FXCM at a Glance
• AvaTrade Overview
• FXCM Overview
• AvaTrade vs. FXCM: Forex Trading
• AvaTrade vs. FXCM: Trading Platforms
• AvaTrade vs. FXCM: Education and Research
• AvaTrade vs. FXCM: Pricing
• AvaTrade vs. FXCM: Which Should You Choose?
• AvaTrade vs. FXCM: Final Thoughts
• Frequently Asked Questions

Key Takeaways

• AvaTrade provides access to over 1,250 financial instruments, including forex, stocks, ETFs, and cryptocurrencies.
• FXCM focuses on advanced tools like Trading Station and API trading for algorithmic traders.
• AvaTrade offers superior risk management features such as AvaProtect™ and negative balance protection.
• FXCM stands out with TradingView integration and Capitalise AI for automated trading strategies.
• Both brokers prioritize education, offering tutorials, webinars, and trading guides.
• AvaTrade has slightly lower minimum spreads, while FXCM’s Active Trader accounts offer competitive commission-based pricing.

AvaTrade vs. FXCM at a Glance

Here’s a quick overview of both brokers to give you an idea of what they both offer. 

Feature	AvaTrade	FXCM
Regulation	Multiple global regulators, including Central Bank of Ireland, ASIC, FSA, and more	FCA, ASIC, FSCA
Trading Platforms	MetaTrader 4/5, WebTrader, AvaOptions, AvaSocial, DupliTrade	Trading Station, MetaTrader 4, TradingView, Capitalise AI
Minimum Deposit	$100	$50
Instruments	Forex, CFDs, commodities, indices, stocks, bonds, ETFs, options	Forex, CFDs, indices, commodities, cryptocurrencies
Education & Research	Extensive educational resources, market analysis, Trading Central	Market insights, webinars, trading guides
Unique Features	AvaProtect, AvaSocial copy trading	TradingView integration, wide range of deposit methods
Pricing	Spreads start at 0.9 pips for EUR/USD	Spreads start at 1.3 pips for EUR/USD

AvaTrade Overview

AvaTrade is a globally regulated and highly trusted broker, offering an impressive selection of over 1,250 financial instruments. 

These include forex, stocks, commodities, indices, ETFs, options, and cryptocurrencies, catering to both beginner and advanced traders. 

With regulation across nine jurisdictions, including Ireland, Japan, Australia, and South Africa, AvaTrade prioritizes security and transparency, giving traders peace of mind.

The platform offers a user-friendly interface and robust trading conditions, such as tight spreads, instant execution, and leverage of up to 33:1. 

Innovative tools like AvaProtect™ for risk management and Trading Central for automated analysis empower users to trade confidently. AvaTrade provides seamless trading experiences across desktop and mobile platforms, including AvaTradeGo and AvaOptions, ensuring accessibility anytime, anywhere.

Educational resources are a key highlight, featuring a comprehensive trading eBook, video tutorials for all levels, and live webinars. The platform emphasizes client success by delivering daily market analysis and personalized support, and users praise it for its professionalism and reliability.

For those interested in social trading, AvaTrade allows users to duplicate professional traders' actions, enhancing learning and earning opportunities. With advanced trading capabilities, regulatory credibility, and a client-focused approach, AvaTrade is a premier choice for novice and seasoned traders worldwide.

Let’s move on and discuss AvaTrade’s core features. 

AvaTrade Core Features

AvaTrade has several core features, including a wide range of trading assets, many trading platforms, educational resources, and more.

Here’s what you need to know about AvaTrade’s core offerings. 

Comprehensive Range of Tradable Assets

AvaTrade boasts an impressive selection of over 1,250 financial instruments, making it a one-stop platform for global market access. These assets span various categories, including forex, stocks, commodities, indices, ETFs, options, and cryptocurrencies.

This extensive range empowers traders to effectively diversify their portfolios, whether by exploring the stability of major forex pairs like EUR/USD, tapping into the growth potential of blue-chip stocks like Apple or Tesla, or delving into innovative markets such as cryptocurrencies. 

Moreover, AvaTrade offers CFDs (Contracts for Difference), which allow traders to speculate on price movements without owning the underlying assets. This adds flexibility to trading strategies.

Multiple Trading Platforms

To accommodate diverse trading styles and preferences, AvaTrade provides access to several comprehensive platforms, including the following:

• MetaTrader 4 (MT4): Industry-standard with advanced charting tools, technical analysis features, and automated trading capabilities.
• MetaTrader 5 (MT5): A modern upgrade with extended timeframes, more indicators, and an integrated economic calendar.
• WebTrader: A browser-based platform requiring no installation, offering a seamless and intuitive interface.
• AvaOptions: Tailored for options trading, with a user-friendly interface and specialized tools for managing risk and rewards.
• AvaTradeGo: A mobile app enabling trading on the go with full access to markets and account management.

Each platform is designed to provide a smooth trading experience, whether you prefer desktop, web, or mobile access.

Automated Trading Options

AvaTrade excels in automated trading, offering solutions that appeal to algorithmic traders and those wishing to copy seasoned professionals. 

The automated trading options include the following:

• Expert Advisors (EAs): Fully compatible with MT4 and MT5, EAs allow traders to automate strategies for hands-free execution.
• AvaSocial: Connects traders to a community where they can follow and replicate the strategies of experienced traders.
• DupliTrade: Enables seamless mirroring of trades from selected strategy providers, ideal for portfolio diversification.
• ZuluTrade: A popular copy-trading platform that integrates with AvaTrade, offering access to numerous signal providers.

These features are invaluable for traders seeking efficiency, expertise, or diversification in their trading approaches.

Educational Resources

AvaTrade prioritizes trader success by offering several educational tools, including the following:

• Trading eBook: A detailed guide covering strategies, market insights, and beginner-friendly tips.
• Video Tutorials: Step-by-step tutorials designed for traders at all levels, from novice to advanced.
• Live Webinars: Interactive sessions with market experts, offering analysis and strategy development.

This focus on education ensures that users know how to navigate the markets effectively.

Although the education provided by AvaTrade is a good start, if you want to learn forex trading so you can pass those funded account challenges, Photon Trading offers comprehensive educational resources. 

Advanced Risk Management Tools

Risk management is a cornerstone of AvaTrade’s offerings, ensuring traders don’t blow their accounts with just a few trades. 

Traders can take advantage of:

• AvaProtect™: A unique tool that allows users to safeguard trades against losses for a specified period, adding a layer of security.
• Negative Balance Protection: Ensures that traders never lose more than their account balance, offering peace of mind in volatile markets.

These features make AvaTrade particularly appealing to those looking to manage risks proactively.

Let’s now find out how much AvaTrade charges for its services, and what its fees are like. 

AvaTrade Pricing

Let’s look at everything you need to know about AvaTrade Pricing.

Spreads

AvaTrade is compensated through the Buy/Sell (Bid/Ask) spread, which is incorporated into the quoted rates. When you open a position, you effectively "pay" this spread. There are no additional charges or fees beyond the quoted rates.

Overnight Premium (Swap Fees)

Positions held open overnight (past 22:00 GMT) may incur an overnight premium, commonly known as a swap fee. This fee varies based on the instrument and position size. For instance, AvaTrade charges a daily swap rate of -0.0058% for long and short positions on stock indices.

Inactivity Fee

Accounts inactive for three consecutive months are subject to an inactivity fee of $50 (or equivalent in other currencies) per quarter. This fee is deducted from the account's balance after each inactivity period.

Administration Fee

If an account remains inactive for 12 consecutive months, an annual administration fee of $100 (or equivalent) is charged. This fee offsets the cost of maintaining the service despite inactivity.

AvaProtect™ Fee

AvaProtect™ is a risk management tool that allows traders to protect specific trades from losses over a chosen time frame. The cost for AvaProtect™ is deducted from the account's free cash balance at the time of purchase. It's important to note that AvaProtect™ does not cover swap. 

Deposit and Withdrawal Fees

AvaTrade does not charge deposit or withdrawal fees. However, third-party charges from banks or payment providers may apply, especially in the case of currency conversions or international transactions.

Currency Conversion Fees

If you deposit or withdraw funds in a currency different from your account's base currency, currency conversion fees may apply. These fees are determined by the prevailing exchange rates and any associated costs from financial institutions involved in the conversion process.

To round things off, let’s discuss the pros and cons of AvaTrade. 

Positives of AvaTrade

AvaTrade offers many advantages for traders looking to trade multiple asset classes and gain access to comprehensive risk management tools. 

Here’s what stands out about AvaTrade:

• Regulation Across Multiple Jurisdictions: AvaTrade is regulated by top-tier financial authorities, including those in the EU, Japan, Australia, and South Africa, ensuring a safe and transparent trading environment.
• Comprehensive Educational Resources: The broker provides a wealth of educational materials, such as articles, eBooks, video tutorials, and live webinars, making it ideal for traders looking to enhance their skills and knowledge.
• 24/5 Multilingual Customer Support: AvaTrade offers reliable customer support via phone, email, and live chat, accommodating traders from around the globe with multilingual assistance.
• Negative Balance Protection: AvaTrade safeguards clients from owing money due to market volatility or unexpected price gaps, ensuring they never lose more than their account balance.
• Diverse Trading Platforms: AvaTrade supports multiple trading platforms, including MetaTrader 4, MetaTrader 5, WebTrader, AvaOptions, and the AvaTradeGo mobile app, catering to a variety of trading preferences.
• Risk Management Tools: AvaProtect™ allows traders to protect specific trades against losses for a predefined period, enhancing risk management capabilities.

What Could Be Better?

AvaTrade does have some drawbacks, including the following:

• Limited Exchange-Traded Products: While AvaTrade offers over 1,250 CFDs across various asset classes, the selection of physical exchange-traded products, such as stocks and ETFs, is narrower compared to some competitors.
• Higher Spreads on Certain Instruments: Instruments with lower liquidity may have wider spreads, which could impact the cost-effectiveness of trading for some users.
• Inactivity Fees: Accounts inactive for three months or more incur a quarterly fee of $50, which may be a disadvantage for less frequent traders.
• Annual Administration Fee: Accounts inactive for 12 consecutive months are charged an additional $100 annual administration fee, which could be a deterrent for traders who take extended breaks.
• No 24/7 Customer Support: While customer support is available five days a week, the lack of 24/7 availability might inconvenience traders in certain time zones.

Now that we’ve reviewed AvaTrade, let’s look at what FXCM brings to the table. 

FXCM Overview

FXCM is a globally regulated broker recognized for providing a robust trading experience through its diverse range of financial instruments and innovative platforms.

Catering to beginner and experienced traders, FXCM offers access to forex, stocks, commodities, indices, and cryptocurrencies. The platform ensures traders can navigate global markets seamlessly with competitive spreads and flexible trading conditions.

FXCM’s award-winning platforms, such as Trading Station, MetaTrader 4, and TradingView Pro, are tailored to different trading styles. 

These platforms offer advanced features like algorithmic trading capabilities, expert advisors (EAs), and deep market analytics, ensuring traders have the tools to execute informed decisions. 

Additionally, FXCM provides API trading options for more tech-savvy users, enabling integration with their price servers for advanced algorithmic trading.

The broker emphasizes trader education with free live online classrooms, beginner guides, and advanced market analysis resources. 

FXCM’s customer-centric approach extends to its 24/7 multilingual support, which offers traders assistance whenever needed. Enhanced execution features, such as no restrictions on stop or limit orders for major indices, further enhance trading efficiency.

FXCM also focuses on providing transparency and safety, being regulated across multiple jurisdictions, and offering negative balance protection. With its competitive offerings and global market access, FXCM stands out as a leading broker in the financial trading industry.

FXCM Core Features

FXCM stands out as a comprehensive trading platform, offering a multitude of features tailored to meet the diverse needs of traders. Here's an overview of its core offerings:

Comprehensive Range of Tradable Assets

FXCM provides access to various financial instruments, enabling traders to diversify their portfolios effectively. 

With over 1,200 instruments across various asset classes, including forex pairs, stocks, commodities, indices, and cryptocurrencies, traders can explore numerous market opportunities. 

Whether you're interested in major currency pairs, leading stocks like Apple or Amazon, or emerging markets such as cryptocurrencies, FXCM's extensive selection supports a wide range of trading strategies.

Multiple Trading Platforms

To accommodate different trading styles and preferences, FXCM supports several comprehensive platforms, including the following:

• Trading Station: FXCM's proprietary platform, known for its user-friendly interface, advanced charting tools, and exclusive indicators like Real Volume and Trader Sentiment. It is available on Web, Desktop, and Mobile, ensuring seamless access across devices.
• MetaTrader 4 (MT4): An industry-standard platform renowned for its advanced charting capabilities, technical analysis tools, and support for automated trading through Expert Advisors (EAs).
• TradingView Pro: A web-based platform that allows traders to access their FXCM accounts and trade directly from TradingView charts, utilizing the platform's advanced features and social trading capabilities.
• Capitalise AI: A platform that enables traders to automate their trading strategies using natural language, eliminating the need for coding skills.

Automated Trading Options

For traders interested in algorithmic strategies, FXCM offers various automated trading solutions, including the following:

• Expert Advisors (EAs): Both MT4 and MT5 support EAs, allowing automated trade execution based on predefined criteria.
• API Trading: FXCM provides API solutions, including FIX, Java, and ForexConnect, enabling traders to connect their custom trading applications directly to FXCM's trading servers for automated trading and advanced market analysis.
• Capitalise AI: This platform allows traders to create, backtest, and deploy custom trading strategies without the need for coding knowledge.

Educational Resources

FXCM is committed to trader education, offering many resources to enhance trading skills. These include the following:

• Free Online Live Classroom: Interactive sessions where traders can learn about various trading topics and strategies.
• Trading Guides: Comprehensive materials covering topics from beginner to advanced levels, including forex trading, share markets, and successful trading habits.
• Market Analysis: Regular insights and analysis on global markets, helping traders make informed decisions.

The education provided by FXCM is substantial, but still not totally comprehensive. For a full-scale trading course that will help you become a proficient forex trader, Photon Trading is the best place to learn from. 

Market Scanner

This tool helps traders identify potential trading opportunities by scanning the markets for predefined technical patterns and conditions. The Market Scanner is fully customizable, enabling traders to align the scans with their unique strategies and preferences.

Let’s discuss how much FXCM charges for its services.

FXCM Pricing

Here’s everything you need to know about FXCM pricing. 

Spreads

FXCM is compensated primarily through the spread, which is the difference between a financial instrument's buy (ask) and sell (bid) prices. These spreads are dynamic and vary based on market conditions, instrument liquidity, and volatility. 

Popular forex pairs such as EUR/USD and GBP/USD generally have tighter spreads than exotic or less liquid instruments. Reduced spreads benefit Active Trader accounts, offering a cost-effective solution for high-volume traders.

Commission-Based Pricing

For certain account types, such as the Active Trader account, FXCM charges commissions in addition to the spread. 

These commissions are applied on a per-trade basis for both opening and closing positions. The rates for these commissions vary depending on the trader's volume, but they come with the advantage of tighter spreads, which can reduce overall trading costs significantly.

Overnight Premium (Swap Fees)

Positions held open past the rollover time, typically 22:00 GMT, incur swap fees, also known as overnight financing fees. These fees are based on the interest rate differential between the currencies in the traded pair. 

The rates are recalculated daily and can either result in a cost (debit) or a gain (credit) depending on the direction of the trade (long or short) and the respective interest rates of the currencies involved.

Inactivity Fee

FXCM charges an inactivity fee for accounts that remain dormant for extended periods. The fee is $50 per quarter after 12 consecutive months of inactivity. 

This fee is automatically deducted from the account balance. Traders who do not plan to actively trade for a while are encouraged to review this policy to avoid unnecessary charges.

Intermediary Markup

Accounts introduced to FXCM by third-party intermediaries may include additional markup on spreads or commissions. 

The specific amount of this markup depends on the agreement between the intermediary and FXCM. These details are disclosed to traders in the account terms provided during the signup process.

Deposit and Withdrawal Fees

FXCM does not charge fees for deposits made via major methods such as credit cards, bank transfers, or e-wallets. 

However, third-party fees from banks or payment processors may still apply. 

Similarly, FXCM does not charge fees for withdrawals, but traders should be aware that their financial institutions or payment providers may impose transaction costs, including currency conversion fees.

Currency Conversion Fees

For traders who deposit or withdraw funds in a currency different from their account’s base currency, currency conversion fees may apply. 

These fees are based on prevailing exchange rates and any additional costs incurred by financial institutions facilitating the conversion. Third-party providers may also charge extra fees depending on the payment method used.

Platform Fees

FXCM’s proprietary platforms, such as Trading Station, are provided free of charge to all users. However, services from third-party platforms may include fees. 

For example, VPS hosting is free for Active Trader accounts but incurs costs for standard accounts. Advanced trading tools, like API access, might also have usage fees depending on the trader's requirements and level of access.

Data Fees

Accessing premium market data or real-time feeds may involve additional costs. These charges depend on the trader’s subscription level and the type of data or insights they require for their trading strategies.

Positives of FXCM

FXCM is a reliable broker offering a wide range of trading instruments, robust platforms, and an emphasis on trader education. 

Here’s what stands out about FXCM:

• Regulation Across Multiple Jurisdictions: FXCM is regulated by top-tier authorities in several regions, including the UK, Australia, and South Africa, ensuring a secure and transparent trading environment for its clients.
• Comprehensive Educational Resources: The broker provides extensive learning materials, including articles, eBooks, video tutorials, live webinars, and interactive sessions. These resources are ideal for traders seeking to enhance their skills and knowledge, whether they are beginners or advanced professionals.
• 24/5 Multilingual Customer Support: FXCM offers reliable customer support through phone, email, and live chat. Multilingual assistance ensures traders worldwide can easily access help whenever needed during trading hours.
• Negative Balance Protection: FXCM safeguards its clients from owing money beyond their account balance due to unexpected market volatility or price gaps, providing additional security.
• Diverse Trading Platforms: FXCM supports several robust platforms, including Trading Station, MetaTrader 4, TradingView Pro, and Capitalise AI. These platforms cater to a variety of trading styles and preferences, offering advanced tools and customizable features.
• Advanced Automated Trading Options: With tools like Expert Advisors (EAs), API trading, and Capitalise AI, FXCM provides multiple automated trading solutions for traders who prefer algorithmic strategies.

What Could Be Better?

While FXCM has several strong points, there are a few areas where it could improve:

• Higher Spreads on Certain Instruments: Some instruments, particularly those with lower liquidity, may have higher spreads compared to other brokers. This could impact cost-effectiveness for traders targeting specific markets.
• Limited Cryptocurrency Offerings: While FXCM does provide cryptocurrency CFDs, the range of available options is relatively narrow compared to specialized cryptocurrency exchanges, which might limit the appeal for crypto-focused traders.
• Inactivity Fees: Accounts that remain inactive for a specified period incur inactivity fees, which could be a disadvantage for traders who do not trade frequently or take extended breaks.
• No 24/7 Customer Support: Although FXCM offers reliable 24/5 customer support, the absence of 24/7 availability may inconvenience traders in certain time zones or those trading during the weekend.
• Platform-Specific Fees: While FXCM’s proprietary platforms are free, some advanced third-party tools, such as VPS hosting or API access, may incur additional fees, which could deter cost-conscious traders.

Let’s now compare AvaTrade and FXCM on a side-by-side basis to determine which is best for you. 

AvaTrade vs. FXCM: Forex Trading

AvaTrade offers a broad range of forex pairs, including majors, minors, and exotics. The broker provides competitive spreads and flexible leverage options, combined with advanced charting and risk management tools to enhance the trading experience. 

Traders can benefit from platforms that support technical analysis and automated trading, making it a versatile choice for both beginners and experienced traders.

FXCM focuses on major and minor currency pairs while offering competitive spreads and fast execution speeds. 

Its proprietary Trading Station platform, along with MetaTrader 4, ensures traders have access to robust tools for technical analysis and trade execution. 

FXCM's emphasis on enhanced execution policies and market transparency appeals to traders who prioritize efficiency and reliability.

AvaTrade vs. FXCM: Trading Platforms

AvaTrade provides access to several trading platforms, including the intuitive WebTrader, mobile trading apps, and the globally recognized MetaTrader 4 and MetaTrader 5. 

These platforms feature advanced charting capabilities, a wide array of technical analysis tools, and automated trading options, catering to diverse trading styles and strategies.

FXCM offers its proprietary Trading Station platform, which is celebrated for its user-friendly interface and powerful features such as advanced charting, real-time trading signals, and customization options. 

Moreover, FXCM supports MetaTrader 4, providing flexibility for traders who prefer this industry-standard platform. Both brokers deliver platform solutions that address the needs of traders at various skill levels.

AvaTrade vs. FXCM: Education and Research

AvaTrade excels in education with its comprehensive suite of resources, including articles, video tutorials, eBooks, and live webinars. 

These materials cover many trading topics, from beginner guides to advanced strategies. AvaTrade also provides market analysis, an economic calendar, and trading signals, ensuring traders have the tools and insights to make informed decisions.

FXCM complements its trading services with a strong focus on education through its FXCM Academy. The academy offers a range of courses, webinars, and articles tailored for novice and experienced traders. 

Also, FXCM provides market news, detailed analysis, and an economic calendar, giving traders a well-rounded approach to market research and strategy development. All of that said, Photon Trading provides the most comprehensive forex education. 

AvaTrade vs. FXCM: Pricing

AvaTrade features competitive spreads starting from 0.9 pips on major forex pairs like EUR/USD. The broker operates on a spread-only pricing model, meaning traders incur no additional commissions on forex trades. 

This pricing structure appeals to traders looking for simplicity and transparency in costs.

FXCM offers tight spreads, with major pairs such as EUR/USD starting from 1.3 pips. For high-volume traders, FXCM's Active Trader accounts provide a commission-based pricing model that includes reduced spreads, making it a cost-effective choice for frequent traders. 

This tiered pricing approach ensures flexibility depending on a trader’s volume and trading style.

AvaTrade vs. FXCM: Which Should You Choose?

To help you make an informed decision, here's a scoring table based on a five-point scale that provides a comparative view of their features:

Feature	AvaTrade	FXCM
Forex Pair Selection	4.8	4.5
Trading Platforms	4.8	4.6
Education and Research	4.6	4.4
Pricing	4.7	4.6
Average Score	4.73	4.53

AvaTrade vs. FXCM: Final Thoughts 

Choosing between AvaTrade and FXCM ultimately depends on your trading needs, experience, and priorities.

AvaTrade stands out with its extensive range of tradable assets, diverse trading platforms, and advanced risk management tools, making it an excellent choice for both novice and seasoned traders. Its focus on education and user-friendly tools further enhances its appeal. 

On the other hand, FXCM offers a streamlined experience with its proprietary Trading Station platform, competitive spreads, and strong emphasis on algorithmic trading and research. 

While both brokers offer unique strengths, AvaTrade edges out slightly with its broader offerings and higher scoring across key categories, your choice should align with your trading style and the features you value most.

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Frequently Asked Questions

What Is the Minimum Deposit for AvaTrade and FXCM?

AvaTrade requires a $100 minimum deposit, while FXCM has a lower requirement of $50. Both cater to traders with varying budgets, making them accessible options for beginners.

Can I Use AvaProtect™ and Similar Tools on FXCM?

FXCM does not offer AvaProtect™ but provides advanced risk management through its Trading Station platform. Tools like stop orders and margin alerts help manage trading risks effectively.

How Do FXCM’s API Trading Options Work?

FXCM’s API trading allows users to create custom trading strategies by connecting their algorithms directly to FXCM’s price servers. This feature is ideal for tech-savvy traders.

Are There Any Platform-Specific Fees with These Brokers?

AvaTrade’s platforms are generally free to use, while FXCM may charge for third-party services such as VPS hosting. Traders should review potential fees based on the tools they require.

Which Broker Is Better for Algorithmic Trading?

FXCM leads in algorithmic trading with its API solutions and Capitalise AI integration. AvaTrade offers automated trading options like DupliTrade and ZuluTrade, making it suitable for copy-trading enthusiasts.

Do Both Brokers Offer Negative Balance Protection?

Yes, both AvaTrade and FXCM provide negative balance protection, ensuring traders don’t lose more than their account balance during volatile market conditions.