Investor compensation schemes exist to return assets or cash when an authorised firm fails and cannot return client property. They are not insurance against investment losses.
What they typically cover
- Client money and securities held by an insolvent firm.
- Up to a fixed limit per person per firm, set by the scheme.
What they typically do not cover
- Falls in the market value of investments.
- Losses from fraud by a firm that was never authorised.
- Products held outside the regulated entity.
How to compare
Look for the scheme's name, the limit and the currency, and whether it applies to the entity that holds your account. Limits differ widely between countries, and some derivative products are excluded entirely.
Brokeli lists the protection scheme and limit on each review where the information has been verified.
Risk warning: Trading forex and CFDs involves a high level of risk and may not be suitable for all investors. You may lose more than your initial investment.
Topicscompensationsafetycustody