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VT Markets 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 VT Markets and what the protections are.

Facts last checked . Read the full VT Markets review.

Regulation and safety

Regulated by
ASIC (AFSL 516246); FSCA South Africa (50865); Mauritius FSC (GB23202269); UAE CMA (20200000299, Category 5 introduction/promotion only)
Regulator tier
Tier 1
Register entry
ASIC Professional Registers, AFSL 516246
Client money segregated
Yes
Held at
Regulated banking institutions
Negative balance protection
Yes
Compensation scheme
Financial Commission compensation fund up to €20,000 per eligible client; no statutory investor compensation scheme under the Mauritius entity
Audited by
Independent external auditors
Not available to
United States and jurisdictions where provision of VT Markets services would contravene local laws or regulations

Check the licence yourself: ASIC Connect, the FSCA search of financial services providers, 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.

VT Markets holds a tier-one authorisation from ASIC. 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.

ASIC caps retail leverage at 1:30, requires negative balance protection, and obliges the broker to hold client money in a separate trust account.

The FSCA licenses derivative providers in South Africa without a fixed retail leverage cap, so headline leverage is often higher than an FCA or ASIC entity may offer.

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 Regulated banking institutions. 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 Financial Commission compensation fund up to €20,000 per eligible client; no statutory investor compensation scheme under the Mauritius entity, which pays eligible clients up to its limit if the firm fails owing client money.

Questions about VT Markets regulation

Is client money segregated at VT Markets?

Yes. VT Markets holds client money separately from its own funds, at Regulated banking institutions.

Does VT Markets offer negative balance protection?

Yes. VT Markets 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 VT Markets?

VT Markets's compensation scheme is recorded as: Financial Commission compensation fund up to €20,000 per eligible client; no statutory investor compensation scheme under the Mauritius entity. A scheme covers the broker failing, not losses on your trades.

Regulation at brokers under the same regulator

More about VT Markets