Account Protection

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How do you know your money is safe if you open a trading account? What you need to do is make sure that the firm you open an account with is safe AND that the regulations governing the firm mean that your money is protected. We have already done this work for you. We would not align ourselves with a company that didn't meet our stringent trader protection criteria.

Segregated Accounts

All of our brokers are safe because they "Segregate" their client funds from their own funds. This is very important. It means if the firm gets into trouble your money is protected because it is treated as a separate asset by the company and the regulators. Whenever you open a trading account you should make sure that your funds will be segregated into what's called a "Segregated Account."A Segregated Account policy requires client funds to be segregated and held internally as a different "pool" of funds to the firm's own capital. This means clients know with certainty that their money will not be used as collateral against positions taken by the firm. Segregated accounts also provide confidence that the amount of money deposited by an individual into a trading account, is accounted for and attributed to them and not someone else. This is especially important if anything bad happens to the company you have a trading account with like bankruptcy.

When you become an Institute trader you will be opening your account with one of our fully FSA registered brokers. As your trading account is held in the United Kingdom and all of our brokers have a firm policy of segregation, your money will be placed in a Segregated Account and you're money will be protected by the FSA. This is important for the reasons outlined in this section. Not all UK based Banks and Brokerage companies are regulated by the FSA and offer Segregated Accounts. So if you intend to open a trading account anywhere, you should please check. If you don't get a straight answer, you should not open a trading account.

Account Protection

If you hold an account through the Institute with one of our brokers, you will have your un-invested cash balances, including cash utilized as collateral for open margin trades, placed in a fully segregated trust account in accordance with the requirements of the FSA. This means you are protected by the FSA for up to £85,000 as part of their deposit protection scheme i.e. the FSA will pay you this money as part of their deposit protection scheme. You will also therefore be able to refer any complaint to the UK's Financial Ombudsman Service. Also, brokerages do not have Bank status. You may not be eligible for the £85,000 FSA deposit protection scheme if you simply have a spread betting or CFD trading account with a regular brokerage company. Once again, you must check this BEFORE you open a trading account with anybody. 

At the Institute we have made sure that our traders are receiving the best protection they can possibly receive. We review this situation regularly and aim to protect our traders to the best of our ability at all times.

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CFDs are a leveraged product and can result in losses that exceed your initial deposit. Trading CFDs may not be suitable for everyone, so please ensure that you fully understand the risks involved.


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