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T4Trade 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 T4Trade and what the protections are.

Facts last checked . Read the full T4Trade review.

Regulation and safety

Regulated by
Seychelles Financial Services Authority (FSA), SD029
Regulator tier
Tier 3
Register entry
Seychelles FSA Capital Markets register, licence SD029
Client money segregated
Yes
Held at
International, well-reputed banks
Negative balance protection
Yes
Compensation scheme
No statutory investor compensation scheme
Audited by
Independent external auditors
Not available to
United States, Iran, Cuba, Sudan, Syria, North Korea and other jurisdictions where services are restricted

Check the licence yourself: the Seychelles FSA list of regulated entities.

What this means

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

T4Trade's licence is offshore (FSA). Offshore entities typically offer higher leverage and lighter reporting, and compensation schemes do not apply - the trade-off is protection, not price.

An FSA licence here is usually the Seychelles authorisation - an offshore entity, with lighter obligations than a tier-one regulator.

Client money is held separately from the firm's own money, at International, well-reputed 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 No statutory investor compensation scheme, which pays eligible clients up to its limit if the firm fails owing client money.

Questions about T4Trade regulation

Is client money segregated at T4Trade?

Yes. T4Trade holds client money separately from its own funds, at International, well-reputed banks.

Does T4Trade offer negative balance protection?

Yes. T4Trade 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 T4Trade?

T4Trade'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 T4Trade