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TopFX 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 TopFX and what the protections are.

Facts last checked . Read the full TopFX review.

Regulation and safety

Regulated by
BVI FSC (SIBA/L/23/1161); CySEC (138/11); Seychelles FSA (SD037)
Regulator tier
Tier 1 through Cyprus entity
Register entry
CySEC CIF Register, licence 138/11
Client money segregated
Yes
Held at
Regulated banking institutions; specific bank not prominently disclosed
Negative balance protection
Entity/client classification dependent
Compensation scheme
ICF up to €20,000 for eligible Cyprus retail clients; none for BVI/Seychelles clients
Audited by
Independent external auditors
Not available to
United States, North Korea, Myanmar, Iran and jurisdictions where the offering is prohibited

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

TopFX 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 and FSA). 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.

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 Regulated banking institutions; specific bank not prominently disclosed. That separation is what makes your balance recoverable if the company fails, rather than part of the pool its creditors divide up.

Covered by ICF up to €20,000 for eligible Cyprus retail clients; none for BVI/Seychelles clients, which pays eligible clients up to its limit if the firm fails owing client money.

Questions about TopFX regulation

Is client money segregated at TopFX?

Yes. TopFX holds client money separately from its own funds, at Regulated banking institutions; specific bank not prominently disclosed.

Does TopFX offer negative balance protection?

Negative balance protection at TopFX is recorded as: Entity/client classification dependent.

Is there a compensation scheme at TopFX?

TopFX's compensation scheme is recorded as: ICF up to €20,000 for eligible Cyprus retail clients; none for BVI/Seychelles clients. A scheme covers the broker failing, not losses on your trades.

Regulation at brokers under the same regulator

More about TopFX