VERIFICATION GUIDE
Broker client protection: licences, losses and compensation
Separate regulatory authorisation, trading risk, client classification and compensation eligibility using FCA, FSCS and ASIC guidance.
FXVeritas research • primary sources • limitations kept visible
Content revision: · Editorial review:
What the evidence says
A licence is not a promise to reimburse trading losses. FSCS says poor investment performance is not covered and asks investors to check both the authorised provider and regulated activity. ASIC Moneysmart explains that CFD issuer, jurisdiction and retail/wholesale classification matter. Record each protection with its company, product and conditions rather than giving an entire brand a single safety label.
Official source: FSCS — Investment protection · ASIC Moneysmart — Contracts for differenceNo individual compensation decision is made here. Protection arrangements vary; consult the scheme and your contractual documents for the precise conditions.
Authorisation is the first question, not the last
Use the FCA checker to ask whether the company is authorised and has permission for the service. Its guidance says that the checker cannot by itself confirm whether an individual is covered by FSCS or the Financial Ombudsman Service. Keep the permissions check and any compensation or complaint-right check as separate records.
Official source: FCA — Firm CheckerTrading losses and firm failure are different
FSCS distinguishes poor investment performance from eligible claims associated with a failed provider or adviser. Its guidance asks investors to confirm the activity is regulated and protected. Do not present compensation as insurance against an adverse market move, and do not apply a scheme’s headline limit without checking eligibility.
Official source: FSCS — Investment protectionAccount classification can change protection
ASIC Moneysmart warns that wholesale CFD clients may lose protections available to retail clients. Our suggested comparison therefore records the client category next to any protection claim. Check a proposed reclassification before accepting it, including the impact on dispute resolution and the product documents you receive.
Official source: ASIC Moneysmart — Contracts for differenceKeep the company and role attached
Exness South Africa’s legal page assigns intermediary and supplier roles to different companies. This is why our research does not roll their licences into a single brand-level guarantee. Ask which company holds money or assets, which company issues the product and which company a complaint or potential claim would concern. Those are questions to document, not assumptions this guide resolves.
Official source: Exness South Africa — Legal documentsA useful protection record
Our suggested checklist stores the claim, legal entity, product, client class, jurisdiction, official source and unresolved conditions. Keep client-money handling, negative-balance terms, compensation and complaint mechanisms as separate questions. Mark an item unconfirmed when the material is missing or contradictory; a green badge is not a substitute for that explanation.
Questions before opening an account
Will a compensation scheme repay an ordinary trading loss?
Do not assume so. FSCS explicitly excludes poor investment performance. Check the scheme’s actual eligibility and covered events instead of treating a licence as loss insurance.
Official source: FSCS — Investment protectionOfficial source
A consultation date records our review of the cited material, not continuous monitoring or a fresh approval of your account.
- ASIC Moneysmart — Contracts for differenceRegulator / public authoritySources consulted:
- FSCS — Investment protectionRegulator / public authoritySources consulted:
- FCA — Firm CheckerRegulator / public authoritySources consulted:
- Exness South Africa — Legal documentsBroker’s own disclosureSources consulted: