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LiteFinance 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 LiteFinance and what the protections are.

Facts last checked . Read the full LiteFinance review.

Regulation and safety

Regulated by
CySEC (093/08); Mauritius FSC (GB20025921); international SVG entity incorporated but not locally licensed as a securities dealer
Regulator tier
Tier 1
Register entry
CySEC CIF Register, licence 093/08
Client money segregated
Yes
Held at
Major regulated banks
Negative balance protection
Yes
Compensation scheme
Investor Compensation Fund up to €20,000 for eligible CySEC clients; none for SVG international clients
Audited by
Independent external auditors
Not available to
EEA countries, United States, Israel, Russia and other restricted jurisdictions for LiteFinance Global LLC

Check the licence yourself: the CySEC register of investment firms, the Mauritius FSC register of licensees.

What this means

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

LiteFinance holds a tier-one authorisation from CySEC. That matters more than any headline spread: it determines your leverage cap, whether losses can exceed your deposit, and what happens to your money if the firm fails.

It also operates an offshore entity (FSC). Which one you are onboarded to depends on where you live, and the two carry very different protections - worth confirming before you deposit.

CySEC licences passport across the EU and follow the 1:30 retail leverage cap, with the Investor Compensation Fund covering eligible claims.

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 Major regulated banks. 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 Investor Compensation Fund up to €20,000 for eligible CySEC clients; none for SVG international clients, which pays eligible clients up to its limit if the firm fails owing client money.

Questions about LiteFinance regulation

Is client money segregated at LiteFinance?

Yes. LiteFinance holds client money separately from its own funds, at Major regulated banks.

Does LiteFinance offer negative balance protection?

Yes. LiteFinance 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 LiteFinance?

LiteFinance's compensation scheme is recorded as: Investor Compensation Fund up to €20,000 for eligible CySEC clients; none for SVG international clients. A scheme covers the broker failing, not losses on your trades.

Regulation at brokers under the same regulator

More about LiteFinance