Deposit guarantees for private customers

Customers are automatically classified as retail customers/private customers. This information will be included in the first confirmation that is sent after the account has been opened by the customer.

Financial service providers authorized and regulated by the Financial Services Authority (Great Britain) are subject to strict rules for the protection of deposits made by private customers. Your broker is strongly committed to these rules in compliance with its status a regulated financial service provider. Customer funds are protected as follows:

Segregate deposit accounts

FSA makes the following statement on the protection of customer assets:
“Companies must guarantee that the funds deposited by the customer are kept at a central bank in an account segregated from others.” Your deposits holds the net share capital of the private customer in segregated bank accounts at Barclays Bank London. This process is regularly monitored by the auditors.

Capital adequacy requirements

According to the regulatory rules of FSA passed by the Directive of European Parliament and the Council on June 14th 2006 that require adequate capital resources from investment firms and credit institutes, your broker is under obligation to comply with strict terms for securing the availability of sufficient capital to protect itself and its customers against the risk of insolvency.

Security device FSCS

As a FSA-regulated company, your broker is also member of FSCS - the Financial Services Compensation Scheme. FSCS was created through FSA and obligates all members to contribute to a mutual fund that assists customers if a contract partner is in default of payment. Beyond the segregation of accounts, the customers are compensated for claims through FSCS with up to 50,000 GBP per customer. Please note that this rule only applies to companies in default of payment and where other restrictions can be placed.

Following the official rules of FSA and is committed to all the necessary steps to protect the company’s and the customer’s capital.

Additionally FXFlat as a part of Heyder Kruger and Kollegen is a member of the EdW.