Is my broker account covered by FSCS or ICF?
An investor compensation scheme pays out when an authorised firm fails and cannot return the cash or investments it holds for you. It does not pay for trading losses, and it only covers the specific legal entity that holds your account, under the rules of the country where that entity is authorised.
A brand being "FCA regulated" or "CySEC regulated" tells you little until you know which group company you signed with. That one fact decides which scheme, if any, applies.
- Am I covered?Four checks, starting with your contracting entity
- How much, and where?UK, Cyprus, EU minimum, Canada, Australia
- What it will not pay forTrading losses, offshore entities, wrong products
- My broker has failedWhat happens and what to keep
1. Four checks to see whether a scheme could apply to you
- Find your contracting entity.Open your client agreement or a recent account statement and copy the full company name and registration number. Large CFD brands often run several companies in different countries, and you may have been onboarded by one you did not expect.
- Check that entity on the regulator's register.Search the exact company name on the register of the regulator it claims, not on the broker's website. FSCS cover requires the provider to be authorised by the PRA or FCA, and the activity to be regulated by them. You can compare entities against FXCN's records with the licence check.
- Check that you are an eligible claimant.Schemes protect retail investors. Cyprus's ICF pays only non-professional investors, and the EU directive allows countries to exclude professional and institutional investors. If you opted up to professional client status to get higher leverage, read what you gave up.
- Check that the product and activity are within scope.Scope differs by scheme. Australia's last-resort scheme explicitly excludes "foreign exchange or derivatives trading"; Canada's CIPF lists futures contracts as eligible property but does not mention FX contracts on its coverage page.
2. Limits and scope by scheme
| Scheme | Limit official source | Pays when | Relevance to FX and CFD accounts |
|---|---|---|---|
| UK: Financial Services Compensation Scheme (FSCS) | Up to £85,000 per eligible person, per firm, for investment firms that failed after 1 April 2019 | A PRA- or FCA-authorised firm has gone out of business, for a regulated activity | The FSCS investments page does not mention CFDs or spread betting specifically. It states that claims for poor investment performance are not accepted. |
| Cyprus: Investor Compensation Fund (ICF) | The lower of 90% of your total covered claims or €20,000 | A member Cyprus investment firm fails to repay funds or return instruments held for clients, after CySEC or a court triggers the process | Membership is compulsory for Cyprus investment firms. Only non-professional investors are paid. |
| EU minimum: Directive 97/9/EC | Not less than ECU 20,000 per investor (Article 4(1)); countries may pay a percentage of at least 90% while below that amount (Article 4(4)) | A firm cannot repay money or return instruments it holds for investors (Article 2(2)) | Each EU country runs its own scheme on top of this floor. Check the scheme of the country where your entity is authorised. |
| Canada: Canadian Investor Protection Fund (CIPF) | For individuals, $1 million for all general accounts combined, with separate $1 million limits for registered retirement accounts and RESPs | A CIRO member firm becomes insolvent and client property is missing | Eligible property listed: cash, securities, futures contracts and segregated insurance funds. FX contracts are not mentioned on the coverage page. |
| Australia: Compensation Scheme of Last Resort (CSLR) | Not stated on the eligibility page | A firm licensed for a covered service has gone out of business or cannot pay | Covers personal advice, retail securities dealing, and providing or arranging credit. Lists "foreign exchange or derivatives trading" as excluded. |
Editorial note If your contracting entity is authorised somewhere not listed here, look for a compensation scheme on that regulator's own website. If you cannot find one, plan as if there is none.
3. Worked example: what the limits mean in money hypothetical
These figures are invented to show how the rules above combine. Real claims depend on the scheme's assessment of what the firm owed you.
| Situation | Calculation | Maximum paid |
|---|---|---|
| Cyprus firm fails; it owed you €30,000 | 90% of €30,000 = €27,000, which is above the €20,000 cap | €20,000 |
| Cyprus firm fails; it owed you €10,000 | 90% of €10,000 = €9,000, which is below the cap | €9,000 |
| UK firm fails after April 2019; it owed you £100,000 | Per-person, per-firm limit of £85,000 | £85,000 |
| Same brand, but your account sits with its offshore company | The UK and Cyprus schemes cover their own authorised firms only | Nothing from FSCS or ICF |
4. What compensation schemes will not pay for
- Trading losses. FSCS does not accept claims for poor investment performance, and CIPF excludes losses from a drop in value "for any reason". A margin call or stop-out is not a scheme event.
- Accounts with group companies outside the scheme's country. The scheme follows the authorised entity that failed, not the brand name on the app.
- Fraud by an unauthorised firm. If the firm was never authorised, or was a clone using a real firm's name, the authorised firm did not fail. FSCS cover starts with an authorised provider. See clone brokers.
- Products outside scope. For example, Australia's CSLR excludes foreign exchange and derivatives trading.
5. Terms that are often confused with compensation
| Term | What it is | How it differs from a compensation scheme |
|---|---|---|
| Segregated client money | Keeping client cash apart from the firm's own money | Applies every day the firm operates and reduces what is lost in a failure. Compensation is the backstop when money is still missing. |
| Negative balance protection | A limit stopping you from losing more than your account balance | Concerns losses from your own trades, not the firm's failure. |
| Ombudsman or dispute body | Australia's AFCA or the UK's Financial Ombudsman decides complaints against firms | Decides disputes with a firm that still exists. Australia's CSLR refers to amounts owed under AFCA determinations when a firm cannot pay. |
6. If your broker has failed
- Do not pay anyone who offers to recover your money for a fee.The FCA warns that recovery scams target people who have already lost money, often impersonating the FCA or police and asking for upfront fees.
- Keep your records.CySEC's ICF application asks for identity details, the services agreement, account and deposit statements, and supporting evidence. Download statements while you still can.
- Use the scheme's own channel.In Cyprus, claims go through the online form on CySEC's website or by letter to the ICF office. The deadline cannot be shorter than five months from the published invitation to claim. Payment is due within three months of the decision being communicated to you.
- Check the regulator's announcements.Schemes and regulators publish notices when a member firm fails. Rely on those, not on messages from people who contact you.
7. Frequently asked questions
My broker says it is "FSCS protected". Is that enough?
Ask which company the statement applies to, then check that company is the one named in your client agreement and is authorised by the FCA. Protection belongs to the authorised firm and its eligible clients, not to the brand.
Does the £120,000 FSCS limit apply to my trading account?
No. FSCS describes the rise to £120,000 from December 2025 as deposit protection, which applies to banks and building societies. Its investments page still gives £85,000 per person, per firm, for investment firms that failed after 1 April 2019.
Is ICF compensation paid automatically?
No. You must apply within the deadline published by the fund, using the form on CySEC's website or by letter.
Can I lose cover by becoming a professional client?
Possibly. Cyprus's ICF pays only non-professional investors, and the EU directive lets countries exclude professional and institutional investors.
Sources and open items
- FSCS: Investments: £85,000 per eligible person per firm for failures after 1 April 2019; authorisation and regulated-activity conditions; no claims for poor performance; the £120,000 figure refers to deposits.
- CySEC: Investor Compensation Fund: lower of 90% or €20,000; non-professional investors; what is covered; how to apply; five-month minimum deadline; payment within three months.
- Directive 97/9/EC on investor-compensation schemes: Articles 2(2), 4(1), 4(2) and Annex I, 4(4).
- CIPF: About CIPF coverage: limits by account category; eligible property; exclusions.
- CSLR: Eligibility assessment: covered services; exclusion of foreign exchange or derivatives trading.
- FCA: Recovery room scams (updated 19 January 2026).