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tastyfx 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 tastyfx and what the protections are.
Facts last checked . Read the full tastyfx review.
Regulation and safety
- Regulated by
- CFTC; National Futures Association (NFA)
- Regulator tier
- Tier 1
- Register entry
- NFA BASIC, NFA ID 0509630
- Client money segregated
- Yes, subject to US retail forex customer-funds requirements
- Held at
- Qualifying US financial institutions
- Negative balance protection
- No
- Compensation scheme
- No
- Audited by
- Independent external auditors; audited financial statements publicly disclosed under NFA requirements
- Not available to
- United States clients only; availability subject to eligible US residency and state restrictions
Check the licence yourself: NFA BASIC.
What this means
The licence is what decides where your money sits and who is obliged to do something about it.
tastyfx lists its regulation as CFTC; National Futures Association (NFA).
Client money is held separately from the firm's own money, at Qualifying US financial 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.
No compensation scheme covers this entity. If the firm fails owing you money there is no statutory fund to claim against, and what you get back depends entirely on what administrators recover.
Questions about tastyfx regulation
Is client money segregated at tastyfx?
Yes. tastyfx holds client money separately from its own funds, at Qualifying US financial institutions.
Does tastyfx offer negative balance protection?
Negative balance protection at tastyfx is recorded as: No.
Is there a compensation scheme at tastyfx?
tastyfx's compensation scheme is recorded as: No. A scheme covers the broker failing, not losses on your trades.