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InstaForex 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 InstaForex and what the protections are.

Facts last checked . Read the full InstaForex review.

Regulation and safety

Regulated by
British Virgin Islands Financial Services Commission (BVI FSC), SIBA/L/14/1082
Regulator tier
Tier 3
Register entry
BVI FSC Investment Business register
Client money segregated
Yes, segregated accounts available
Held at
Regulated banking institutions
Negative balance protection
No
Compensation scheme
No statutory investor compensation scheme
Audited by
Independent external auditor
Not available to
United States and other jurisdictions where services are restricted or prohibited

What this means

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

InstaForex'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 InstaForex regulation

Is client money segregated at InstaForex?

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

Does InstaForex offer negative balance protection?

Negative balance protection at InstaForex is recorded as: No.

Is there a compensation scheme at InstaForex?

InstaForex'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 InstaForex