Key points
- Schemes pay when a firm fails and can't return client money
- Trading losses and bad advice are not covered in the same way
- Limits, eligibility and the covering company all matter
What a scheme is for
An investor-compensation scheme steps in when a regulated firm fails and can’t return what it holds for clients. It isn’t insurance against losing trades.
Limits and eligibility
Each scheme has a limit per person and rules on who can claim. Some only cover certain kinds of client, and only clients of the company that belongs to the scheme. See our scheme pages for each one’s figures and sources.
When there is no scheme
Many licences, especially offshore ones, come with no compensation scheme at all. That doesn’t make a firm dishonest, but it changes what happens if it fails.