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CMC Markets 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 CMC Markets and what the protections are.

Facts last checked . Read the full CMC Markets review.

Regulation and safety

Regulated by
FCA (173730); ASIC (AFSL 238054); BaFin (154814); MAS; FMA New Zealand (FSP41187); CIRO Canada; DFSA (F006316)
Regulator tier
Tier 1
Register entry
FCA Financial Services Register, FRN 173730
Client money segregated
Yes
Held at
Major regulated banks including Barclays
Negative balance protection
Yes, retail clients
Compensation scheme
FSCS up to £85,000 for eligible UK clients; EdW protection up to €20,000 for eligible German clients; CIPF protection for eligible Canadian investment accounts
Audited by
PricewaterhouseCoopers LLP
Not available to
United States and jurisdictions where CMC Markets is not authorised or services are legally restricted

Check the licence yourself: the FCA Register, ASIC Connect, the MAS Financial Institutions Directory, the New Zealand Financial Service Providers Register, the DFSA public register.

What this means

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

CMC Markets holds tier-one authorisations from ASIC, FCA, MAS, FMA, BaFin and CIRO. 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.

ASIC caps retail leverage at 1:30, requires negative balance protection, and obliges the broker to hold client money in a separate trust account.

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

The DFSA regulates from the Dubai International Financial Centre, a separate legal jurisdiction from the wider UAE.

Client money is held separately from the firm's own money, at Major regulated banks including Barclays. 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; EdW protection up to €20,000 for eligible German clients; CIPF protection for eligible Canadian investment accounts, which pays eligible clients up to its limit if the firm fails owing client money.

Questions about CMC Markets regulation

Is client money segregated at CMC Markets?

Yes. CMC Markets holds client money separately from its own funds, at Major regulated banks including Barclays.

Does CMC Markets offer negative balance protection?

Yes. CMC Markets 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 CMC Markets?

CMC Markets's compensation scheme is recorded as: FSCS up to £85,000 for eligible UK clients; EdW protection up to €20,000 for eligible German clients; CIPF protection for eligible Canadian investment accounts. A scheme covers the broker failing, not losses on your trades.

Regulation at brokers under the same regulator

More about CMC Markets