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FXChoice 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 FXChoice and what the protections are.

Facts last checked . Read the full FXChoice review.

Regulation and safety

Regulated by
Financial Services Commission of Belize (FSC), registration 000067/34
Regulator tier
Tier 3
Register entry
Belize FSC Securities Industry register, registration 000067/34
Client money segregated
Yes
Held at
Regulated banking institutions
Negative balance protection
No
Compensation scheme
No statutory investor compensation scheme
Audited by
Independent external auditors
Not available to
Afghanistan, American Samoa, Bahamas, Belarus, Belgium, Burundi, Canada, Central African Republic, Congo, Cuba, Egypt, Eritrea, Ethiopia, Guam, Guinea, Guinea-Bissau, Guyana, Iran, Iraq, Laos, Lebanon, Libya, Mali, Namibia, North Korea, Pakistan, Palau, Russia, Saint Kitts and Nevis, Samoa, Serbia, Somalia, Sri Lanka, Sudan, Syria, Trinidad and Tobago, Tunisia, Turkey, Ukraine, United States, Vanuatu, Venezuela, US Virgin Islands, Yemen, Zimbabwe and other EU/EEA countries

What this means

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

FXChoice's licence is offshore (FSC). 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.

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.

There is no negative balance protection. In a fast market a position can gap straight through your stop, and without this the resulting debt is legally yours - you can lose more than you deposited.

Covered by No statutory investor compensation scheme, which pays eligible clients up to its limit if the firm fails owing client money.

Questions about FXChoice regulation

Is client money segregated at FXChoice?

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

Does FXChoice offer negative balance protection?

Negative balance protection at FXChoice is recorded as: No.

Is there a compensation scheme at FXChoice?

FXChoice'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 FXChoice