UK compensation fund

Discussion in 'Forex Brokers' started by tmclimon, Jan 9, 2009.

  1. tmclimon

    tmclimon Guest


    I have been reading things on another forum about FSCS. From what I understand, it's an official UK fund able to compensate if your broker dies down.

    But this is not clear to me who will benefit from FSCS and how. Someone here could help ?

    If a big name like Lehman can disappear so fast, I can't see why brokers would be immune to the crisis.

  2. As far as I know they operate as a backup for claims against FSA-regulated firms that go bust, they will compensate clients up to 50k if the busted firm doesn't have enough assets to cover claims.

    More info here

    You're right, no-one is immune from going broke, so it's reassuring to know that if the worst happens then clients of FSA regulated brokers/marketmakers funds are covered up to GBP50k.
  3. tmclimon

    tmclimon Guest

    Thx for the answer. I am OK to lose my money if I make mistake, not if some others do so this FSCS thing looks good (I am on Alpari UK, which is FSA regulated, so I should get this protection).

    Do you know someone who asked for help to this fund ?
  4. It looks like the first USD5k are covered under a scheme that Alpari operate, and anything above that would probably be covered under the FSA and FSCS scheme.

    I know people who investigated the cover offered by the FSA when there was the Northern Rock fiasco and they were covered up to 30k at the time and I think it was 90% of 30k to 100k (but those figures have been increased now as far as I know)

    It might be worth checking with Alpari just to be safe.