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IUX 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 IUX and what the protections are.

Facts last checked . Read the full IUX review.

Regulation and safety

Regulated by
Mauritius FSC; South Africa FSCA; additional group registrations/licences
Regulator tier
Tier 2
Register entry
Mauritius FSC register, IUX Markets (MU) Ltd
Client money segregated
Yes
Negative balance protection
Yes
Compensation scheme
No FSCS-style statutory compensation scheme for primary international clients
Audited by
Not prominently disclosed
Not available to
Australia, Canada, Japan, Malaysia, Ukraine, UK, US, EU member states; no new Thai clients

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.

IUX'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. 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 FSCS-style statutory compensation scheme for primary international clients, which pays eligible clients up to its limit if the firm fails owing client money.

Questions about IUX regulation

Is client money segregated at IUX?

Yes. IUX holds client money separately from its own funds.

Does IUX offer negative balance protection?

Yes. IUX 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 IUX?

IUX's compensation scheme is recorded as: No FSCS-style statutory compensation scheme for primary international clients. A scheme covers the broker failing, not losses on your trades.

Regulation at brokers under the same regulator

More about IUX