The safety dossier

Home / Reviews / BDSwiss / Regulation

BDSwiss 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 BDSwiss and what the protections are.

Facts last checked . Read the full BDSwiss review.

Regulation and safety

Regulated by
Seychelles FSA (SD047); Mauritius FSC (C116016172)
Regulator tier
Tier 3
Register entry
Seychelles FSA Securities Dealer register, licence SD047
Client money segregated
Yes
Held at
Regulated banking institutions
Negative balance protection
Yes
Compensation scheme
No statutory investor compensation scheme
Audited by
Independent external auditors
Not available to
Canada, Democratic Republic of Congo, Eritrea, India, Indonesia, Iran, Japan, North Korea, Libya, Malaysia, Mauritius, Myanmar, Pakistan, Philippines, Russia, Seychelles, Somalia, South Africa, Sudan, Syria, Thailand, United States, United Kingdom, Vietnam and European Union countries, plus other restricted jurisdictions

Check the licence yourself: the Seychelles FSA list of regulated entities, 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.

BDSwiss's licence is offshore (FSC and FSA). Offshore entities typically offer higher leverage and lighter reporting, and compensation schemes do not apply - the trade-off is protection, not price.

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

An FSA licence here is usually the Seychelles authorisation - an offshore entity, with lighter obligations 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 No statutory investor compensation scheme, which pays eligible clients up to its limit if the firm fails owing client money.

Questions about BDSwiss regulation

Is client money segregated at BDSwiss?

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

Does BDSwiss offer negative balance protection?

Yes. BDSwiss 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 BDSwiss?

BDSwiss's compensation scheme is recorded as: No statutory investor compensation scheme. A scheme covers the broker failing, not losses on your trades.

Regulation at brokers under the same regulator

More about BDSwiss