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FXDD 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 FXDD and what the protections are.
Facts last checked . Read the full FXDD review.
Regulation and safety
- Regulated by
- FXDD Trading S.A.C. registered in Peru and authorised to provide foreign-exchange services
- Regulator tier
- Tier 3
- Register entry
- Peruvian corporate/tax register, RUC 20610077278
- 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
- American Samoa, Angola, Belarus, Bermuda, Burundi, Cameroon, Central African Republic, Chad, Republic of the Congo, DR Congo, Cuba, Equatorial Guinea, Gabon, Iran, North Korea, Libya, Marshall Islands, Puerto Rico, Russia, Sao Tome and Principe, Sudan, Syria, United States, Venezuela, US Virgin Islands, Yemen, Zimbabwe
What this means
The licence is what decides where your money sits and who is obliged to do something about it.
FXDD lists its regulation as FXDD Trading S.A.C. registered in Peru and authorised to provide foreign-exchange services.
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 FXDD regulation
Is client money segregated at FXDD?
Yes. FXDD holds client money separately from its own funds, at Regulated banking institutions.
Does FXDD offer negative balance protection?
Yes. FXDD 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 FXDD?
FXDD's compensation scheme is recorded as: No statutory investor compensation scheme. A scheme covers the broker failing, not losses on your trades.