Protection

Investor Compensation Schemes Compared: FSCS, ICF, CIPF and More

What happens to your money if a regulated broker fails? A comparison of statutory compensation limits by country.

Compensation schemes are a last line of defence. They pay out when an authorised firm has failed and cannot return client money or assets — typically because of fraud, poor record-keeping or a shortfall in segregated funds. They do not cover trading losses. Limits vary widely.

CountrySchemeTypical investor limit
United KingdomFSCS£85,000
SpainFOGAIN€100,000
FranceFGDR (investor guarantee)€70,000
GreeceSynegiko€30,000
PortugalSII€25,000
Poland / LithuaniaNational schemesabout €22,000
CyprusICF€20,000
GermanyEdW90% up to €20,000
IrelandICCL90% up to €20,000
CanadaCIPFCAD 1,000,000 per account category
Switzerlandesisuisse (bank deposits)CHF 100,000
Australia, US (spot FX), Singapore, South Africa, UAE—No statutory scheme for retail FX/CFDs

Figures are headline maximums; each scheme has eligibility rules, and several cover only a percentage of the loss. Always check the scheme's own website.

Compensation versus segregation

In most broker failures, clients are repaid mainly from segregated client money, not from a compensation fund. That is why the quality of client-money rules — trust accounts, daily reconciliations, audits — matters even in countries without compensation schemes. Australia and Japan, for example, have no retail FX compensation fund but strict trust-account rules. See our guide to segregated client funds.

Private insurance

Some brokers advertise additional private insurance, for example through Lloyd's of London syndicates, covering amounts above the statutory scheme. These policies can be useful but come with conditions and aggregate limits; read the terms rather than relying on the headline figure.

Dispute-resolution funds

The Financial Commission runs a compensation fund of up to €20,000 per award for disputes with member brokers. This is not a statutory scheme and only applies to its own dispute process, but it can help clients of offshore brokers.

Risk warning: CFDs and leveraged forex are complex instruments and come with a high risk of losing money rapidly due to leverage. Most retail investor accounts lose money when trading CFDs. Consider whether you understand how they work and whether you can afford to take the high risk of losing your money. Read more.