FSCS

The Financial Services Compensation Scheme (FSCS) is the UK's statutory compensation fund for clients of financial services firms, including forex brokers. If an FSCS-eligible broker becomes insolvent, the scheme protects client funds up to £85,000 per person, per firm — but it does not cover losses from trading itself.

What is the FSCS

The FSCS was established under the Financial Services and Markets Act 2000. It is an independent, UK-based fund financed by levies on financial services firms, not by government money. Its role is to pay compensation to clients when a firm is unable, or likely to be unable, to pay claims against it — covering deposits, investment business, home finance, and insurance policies.

How the FSCS protects forex traders

For forex trading, FSCS protection applies to funds a trader has deposited with a broker. Coverage is capped at £85,000 per person, per firm. The scheme only pays out if the broker becomes insolvent; it does not compensate traders for losses caused by market movements or trading decisions.

What the FSCS does not cover

• Jurisdiction: only firms authorized by the UK's Financial Conduct Authority (FCA) or Prudential Regulation Authority (PRA) fall under the scheme.
• Compensation cap: the £85,000 limit may not cover the full balance of a high-volume trader.
• Trading losses: FSCS never compensates for losses from trading or market movements, only broker insolvency.

FSCS compared with other investor protection schemes

Checking whether your forex broker is FSCS-protected

FSCS protection only applies if the broker is authorized by the FCA or PRA — check a broker's regulatory status before depositing funds. The brokers listed below hold FSCS-eligible regulation.