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XTB 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 XTB and what the protections are.

Facts last checked . Read the full XTB review.

Regulation and safety

Regulated by
KNF Poland; FCA (522157); CySEC (169/12); DFSA (F006316); FSC Belize (000000587 / 6442514); additional regional authorisations
Regulator tier
Tier 1
Register entry
FCA Financial Services Register, FRN 522157
Client money segregated
Yes
Held at
Regulated banking institutions
Negative balance protection
Yes
Compensation scheme
Applicable statutory schemes by entity, including FSCS up to £85,000 for eligible UK clients
Audited by
PricewaterhouseCoopers Polska sp. z o.o. Audyt sp.k.
Not available to
United States, Canada, Japan and other jurisdictions where XTB does not provide its services

Check the licence yourself: the FCA Register, the CySEC register of investment firms, the DFSA public register.

What this means

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

XTB holds tier-one authorisations from FCA and 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). Which one you are onboarded to depends on where you live, and the two carry very different protections - worth confirming before you deposit.

The FCA caps retail leverage at 1:30, mandates negative balance protection, and covers eligible clients under the Financial Services Compensation Scheme.

CySEC licences passport across the EU and follow the 1:30 retail leverage cap, with the Investor Compensation Fund covering eligible claims.

The DFSA regulates from the Dubai International Financial Centre, a separate legal jurisdiction from the wider UAE.

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 Applicable statutory schemes by entity, including FSCS up to £85,000 for eligible UK clients, which pays eligible clients up to its limit if the firm fails owing client money.

Questions about XTB regulation

Is client money segregated at XTB?

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

Does XTB offer negative balance protection?

Yes. XTB 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 XTB?

XTB's compensation scheme is recorded as: Applicable statutory schemes by entity, including FSCS up to £85,000 for eligible UK clients. A scheme covers the broker failing, not losses on your trades.

Regulation at brokers under the same regulator

More about XTB