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Trader's Way 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 Trader's Way and what the protections are.
Facts last checked . Read the full Trader's Way review.
Regulation and safety
- Regulation
- Unregulated
- Regulator tier
- Unregulated
- Register entry
- No financial-services regulator register
- Client money segregated
- Yes, company-stated segregation arrangements
- Held at
- Not publicly disclosed
- Negative balance protection
- No
- Compensation scheme
- None
- Audited by
- Not publicly disclosed
- Not available to
- United States, United Kingdom and jurisdictions where use of the service would contravene local law
What this means
The licence is what decides where your money sits and who is obliged to do something about it.
Trader's Way is not regulated by any financial authority. That means there is no regulator's register to check it against, and none of the client money and compensation rules a licence brings.
Client money is held separately from the firm's own money, at Not publicly disclosed. 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 Trader's Way regulation
Is client money segregated at Trader's Way?
Yes. Trader's Way holds client money separately from its own funds, at Not publicly disclosed.
Does Trader's Way offer negative balance protection?
Negative balance protection at Trader's Way is recorded as: No.
Is there a compensation scheme at Trader's Way?
Trader's Way's compensation scheme is recorded as: None. A scheme covers the broker failing, not losses on your trades.