We found 11 online brokers that are appropriate for Trading Investment.
Investor compensation schemes are a real blessing to traders, offering complete protection and adding a level of confidence to trading. Before we proceed with a discussion on investor compensation schemes, it is important to know that one needs to be aware of their investments. Investments should not only be made in products which claim to give back the highest returns. Experts in the financial markets suggest investing only the amount that you can live without. In other words, traders need to get prepared before investing.
The investor compensation schemes come into force if a trading firm fails. This is the basic eligibility to claim investor compensation schemes.
Certain eligibility criteria must be fulfilled by a limited company, charity, or small business before placing a claim. The eligibility varies depending on the claims and legal status of the applicants, such as: incorporated entity, individual, or charity.
Investor compensation schemes entertain such claims in which the company or charity failed as a business and were not able to pay back the money. Moreover, at the time when the business was being carried out, the company or charity had to have been regulated by a proper regulatory authority.
Investor compensation schemes protect deposits of companies irrespective of the size. However, the maximum deposit is predefined. A sole trader is not entitled to more than one claim. It is not possible to make two separate claims.
There are rules for insurance claims in investor compensation schemes. Companies having turnover beyond the set level are not eligible for insurance claims.
The companies need to qualify for investment claims. There are basically three criteria. These are: annual turnover, number of employees, and balance sheet. At least two of these need to be fulfilled.
The qualifying conditions for claims at the 'Financial Services Compensation Scheme' (FSCS) are as below:
Adopted in 1997, the investor compensation schemes protect investors against their investment, if the investment firm does not return the assets. Investment risk is not covered. EU countries are directed to set up such schemes and ensure the minimum level of compensation for an investor currently 20,000 pounds.
In the new and revised proposal, the commission proposed an update to the investor compensation schemes. This update argues that investors could only be compensated after nine months of the firm's failure. The compensation level could rise to $50,000.
Sometimes the compensations are delayed, and the reason could be other than operations, such as: delays in the declaration or legal delays. These are beyond the control of the schemes. Hence, it is suggested to outsource the process to shorten the delays. There are several third-party service providers to help in speeding up the process.
The schemes are financed simply by the contributions of the participating firms. This is not the only way though. Some alternative sources are also available.
Bad advice is a significant risk faced by retail investors. This is qualified under the compensation scheme in the United Kingdom. However, not all countries approve this.
Promises on products offering high returns often turn out to be a scam. The service providers either minimize the risk or hide the risk in small print. Traders need to be wary and avoid offers coming through email, post, or cold-call. These days such scams are advertised online. Unexpected offers should be rejected outright. This is the best way to avoid getting trapped in a scam.
Investor compensation schemes are best when an investor is able to fulfill the eligibility. It is also best if the compensation is not delayed. To avoid getting compensated late, it is suggested to request the help of an external service provider, which can speed up the claim process.
More to all this, an investor needs to understand the investment should be made in a regulated product and company. Compensation cannot be provided against investments made in a scam product or in a counterfeit firm.
We've collected thousands of datapoints and written a guide to help you find the best Investor Compensation Schemes for you. We hope this guide helps you find a reputable broker that matches what you need. We list the what we think are the best Investment below. You can go straight to the broker list here.
There are a number of important factors to consider when picking an online Investment trading brokerage.
Our team have listed brokers that match your criteria for you below. All brokerage data has been summarised into a comparison table. Scroll down.
We compare these features to make it easier for you to make a more informed choice.
Here are the top Investment.
Compare Investment min deposits, regulation, headquarters, benefits, funding methods and fees side by side.
All brokers below are Investment. Learn more about what they offer below.
You can scroll left and right on the comparison table below to see more Investment that accept Investment clients
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eToro
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IC Markets
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XTB
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FP Markets
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Trading212
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Plus500
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Pepperstone
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EasyMarkets
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XM
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FXPrimus
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SpreadEx
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Regulation | Financial Conduct Authority (FCA), Cyprus Securities and Exchange Commission (CySEC), Markets In Financial Instruments Directive (MiFID), Australian Securities and Investments Commission (ASIC) | Australian Securities and Investments Commission (ASIC), Financial Services Authority (FSA), Cyprus Securities and Exchange Commission (CySEC) | Financial Conduct Authority (FCA), FCA number FRN 522157, Cyprus Securities and Exchange Commission (CySEC), CySEC Licence Number: 169/12, Comisión Nacional del Mercado de Valores, Komisja Nadzoru Finansowego, Belize International Financial Services Commission (IFSC) under license number IFSC/60/413/TS/19, Polish Securities and Exchange Commission (KPWiG) | Australian Securities and Investments Commission (ASIC), Cyprus Securities and Exchange Commission (CySEC) | Financial Conduct Authority (FCA), Financial Supervision Commission (FSC) | Plus500UK Ltd authorized & regulated by the FCA (#509909), Plus500CY Ltd authorized & regulated by CySEC (#250/14), Plus500AU Pty Ltd (ACN 153301681), ASIC in Australia AFSL #417727, FMA in New Zealand, FSP #486026 and Authorised Financial Services Provider in South Africa FSP #47546 | Financial Conduct Authority (FCA), Australian Securities and Investments Commission (ASIC), Federal Financial Supervisory Authority (BaFin), Dubai Financial Services Authority (DFSA), Capital Markets Authority of Kenya (CMA), Pepperstone Markets Limited is incorporated in The Bahamas (number 177174 B), Licensed by the Securities Commission of the Bahamas (SCB) number SIA-F217 | Cyprus Securities and Exchange Commission (CySEC), Australian Securities and Investments Commission (ASIC) | International Financial Services Commission (IFSC), Cyprus Securities and Exchange Commission (CySEC), Australian Securities and Investments Commission (ASIC) | Cyprus Securities and Exchange Commission (CySEC), Markets In Financial Instruments Directive (MiFID) | Financial Conduct Authority (FCA) |
Min Deposit | 200 | 200 | No minimum deposit | 100 | 1 | 100 | 200 | 100 | 5 | 100 | 1 |
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Used By | 17,000,000+ | 60,000+ | 250,000+ | 10,000+ | 14,000,000+ | 15,500+ | 10,000+ | 142,500+ | 70,000+ | 10,000+ | 10,000+ |
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Platforms | Web Trader, Tablet & Mobile apps | MT4, MT5, Mirror Trader, ZuluTrade, Web Trader, cTrader, Mac | MT4, Mirror Trader, Web Trader, Tablet & Mobile apps | MT4, MT5, IRESS, Mac, Web Trader, Tablet & Mobile apps | Web Trader, Tablet & Mobile apps | Web Trader, Tablet & Mobile apps | MT4, MT5, Mac, ZuluTrade, Web Trader, cTrader, Tablet & Mobile apps | MT4, Web Trader, Tablet & Mobile apps | MT4, MT5, Mac, Web Trader, Tablet & Mobile apps | MT4, Mac, Mirror Trader, Web Trader, Tablet & Mobile apps | Web Trader, Tablet & Mobile apps |
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Learn More |
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Up with easymarkets |
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Up with spreadex |
Risk Warning | 71% of retail investor accounts lose money when trading CFDs with this provider. | Losses can exceed deposits | 82% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. | Losses can exceed deposits | CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 76% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. | 76.4% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money. | CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 79.3% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money | Your capital is at risk | Your capital is at risk | Losses can exceed deposits | Losses can exceed deposits |
Demo |
eToro Demo |
IC Markets Demo |
XTB Demo |
FP Markets Demo |
Trading 212 Demo |
Plus500 Demo |
Pepperstone Demo |
easyMarkets Demo |
XM Demo |
FXPrimus Demo |
SpreadEx Demo |
Excluded Countries | IR, KP, BE, CA, JP, SY, TR, IL, BY, AL, MD, MK, RS, GN, CD, SD, ZW, ET, GH, TZ, LY, UG, ZM, BW, RW, TN, SO, NA, TG, SL, LR, GM, DJ, CI, PK, BN, TW, WS, NP, SG, VI, TM, TJ, UZ, LK, TT, HT, MM, BT, MH, MV, KZ, GD, FJ, BB, BM, BS, AG, AI, AW, LB, SV, US, PY, HN, GT, PR, NI, VG, AN, | AF, GN, SL, BW, IR, SY, MM, IQ, TG, KH, LS, YE, CI , LR, ZW, CU, LY, TZ, CG, ML, BO, LR, NE, AO, GM, NG, AG, GH, KR, KG, GN, SN, NA | US, IN, PK, BD, NG , ID, BE | US, JP, NZ | US | MY, BE, US, CA, CN, ID, PH, TG, NG, DO, MA, ZW, PR, TZ, TN, UG, BW, AO, AE | BR, KR, IR, IQ, SY, JP, US | US | US, CA, IL, KR, IR, MM, CU, SD, SY | AF, CI, CU, IQ, IR, LY, MM, KR, SD, PR, US, AU, SY, DZ, JP, EC. | US, TR |
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