In short
- EU minimum cover: €20,000 per investor.
- The broker's home-country scheme applies.
- Covers firm failure — not trading losses.
How the schemes work
The Investor Compensation Schemes Directive requires each EU country to have a scheme protecting clients of investment firms. If a firm fails and can't return clients' money or financial instruments, eligible clients can claim up to the scheme's limit.
Examples
| Country | Scheme | Investor cover |
|---|---|---|
| Cyprus | Investor Compensation Fund (ICF) | Up to €20,000 |
| EU minimum | Investor Compensation Schemes Directive | At least €20,000 |
Check the scheme and limit that apply to your broker's entity — limits and eligibility rules differ by country.
Investor vs deposit protection
Bank deposit guarantee schemes (typically €100,000) protect bank deposits. Investor compensation schemes protect clients of investment firms, with lower limits. Some brokers are banks, so different protection may apply.
First line of defence: segregation
Client money must be held separately from the firm's own funds, so in most failures clients' money is returned through the insolvency process and compensation only covers shortfalls.
Frequently asked questions
How much is covered?
EU law sets a minimum of €20,000 per investor. Some countries offer more.
Which scheme covers me?
The scheme of the country where the broker's legal entity is authorised, not necessarily where you live.
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. Most retail investor accounts lose money when trading CFDs. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.