Ombudsman and compensation schemes: what happened in your case?
Ombudsmen and compensation schemes sit above the brokers, and using them is a world of forms, deadlines and slow justice. The stories help others navigate it.
Share:
- the scheme and the dispute
- the timeline and the paperwork
- what you'd do differently
The client money guide explains the schemes by region.
Background: Negative balance protection, client money and compensation schemes
What happens to your money if a trade goes badly wrong, or if your broker goes bust? The protections that apply in the UK, EU, Australia and the US, and their limits.
Can I lose more than my deposit trading forex?
Retail clients of brokers regulated in the EU, UK and Australia have negative balance protection, which caps losses at the account balance. With brokers not bound by those rules, a large gap could leave you owing money.
Is my money protected if my broker goes bust?
It depends on the company's regulator. Client money should be segregated, and schemes such as the UK's FSCS (up to £85,000) or Cyprus's Investor Compensation Fund (up to €20,000) may cover eligible claims. US forex accounts aren't covered by SIPC.
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