The safety dossier

Home / Reviews / FXTM / Regulation

FXTM 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 FXTM and what the protections are.

Facts last checked . Read the full FXTM review.

Regulation and safety

Regulated by
FSC Mauritius (C113012295); FSCA South Africa (50320); CMA Kenya (135)
Regulator tier
Tier 2
Register entry
FSC Mauritius register
Client money segregated
Yes
Held at
Top-tier banking institutions
Negative balance protection
Yes
Compensation scheme
No statutory investor compensation scheme
Audited by
Independent external auditors
Not available to
United States, Mauritius, Japan, Canada, Haiti, Iran, Suriname, North Korea, Puerto Rico, occupied area of Cyprus, Quebec, Iraq, Syria, Cuba, Belarus, Myanmar, Russia, India, United Kingdom

Check the licence yourself: the Mauritius FSC register of licensees, the FSCA search of financial services providers.

What this means

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

FXTM'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.

The FSCA licenses derivative providers in South Africa without a fixed retail leverage cap, so headline leverage is often higher than an FCA or ASIC entity may offer.

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 Top-tier 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 FXTM regulation

Is client money segregated at FXTM?

Yes. FXTM holds client money separately from its own funds, at Top-tier banking institutions.

Does FXTM offer negative balance protection?

Yes. FXTM 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 FXTM?

FXTM'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 FXTM