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ActivTrades regulation: what happens if the firm fails

The licence is what decides where your money sits and who is obliged to do something about it. Here is who licenses ActivTrades and what the protections are.

Facts last checked . Read the full ActivTrades review.

Regulation and safety

Regulated by
FCA (434413); Mauritius FSC (GB24203277); Securities Commission of The Bahamas
Regulator tier
Tier 1
Register entry
FCA Financial Services Register, FRN 434413
Client money segregated
Yes
Held at
Regulated banking institutions
Negative balance protection
Yes
Compensation scheme
FSCS up to £85,000 for eligible UK clients; additional private funds insurance up to $1,000,000
Audited by
Independent external auditors
Not available to
United States, Canada, Japan, Brazil and other jurisdictions where services would contravene local laws or regulations

Check the licence yourself: the FCA Register, the Mauritius FSC register of licensees.

What this means

The licence is what decides where your money sits and who is obliged to do something about it.

ActivTrades holds a tier-one authorisation from FCA. That matters more than any headline spread: it determines your leverage cap, whether losses can exceed your deposit, and what happens to your money if the firm fails.

It also operates an offshore entity (FSC). Which one you are onboarded to depends on where you live, and the two carry very different protections - worth confirming before you deposit.

The FCA caps retail leverage at 1:30, mandates negative balance protection, and covers eligible clients under the Financial Services Compensation Scheme.

An FSC licence (Mauritius or Belize, depending on the entity) is an offshore authorisation with lighter reporting duties than a tier-one regulator.

Client money is held separately from the firm's own money, at Regulated banking institutions. That separation is what makes your balance recoverable if the company fails, rather than part of the pool its creditors divide up.

Negative balance protection applies, so a losing position cannot take the account below zero and leave you owing the broker money.

Covered by FSCS up to £85,000 for eligible UK clients; additional private funds insurance up to $1,000,000, which pays eligible clients up to its limit if the firm fails owing client money.

Questions about ActivTrades regulation

Is client money segregated at ActivTrades?

Yes. ActivTrades holds client money separately from its own funds, at Regulated banking institutions.

Does ActivTrades offer negative balance protection?

Yes. ActivTrades offers negative balance protection, so a losing position cannot leave you owing the broker more than your account held.

Is there a compensation scheme at ActivTrades?

ActivTrades's compensation scheme is recorded as: FSCS up to £85,000 for eligible UK clients; additional private funds insurance up to $1,000,000. A scheme covers the broker failing, not losses on your trades.

Regulation at brokers under the same regulator

More about ActivTrades