Protecting our clients is our primary goal, for this reason ActivTrades provides important assurances to make trading with us even more secure.
We protect all of our clients from a negative account balance.
Your funds are securely held in a segregated client account.
Our additional insurance protects our clients’ capital up to $1,000,000.
Negative Balance Protection
The interests of our clients are our primary objective and that is why with ActivTrades your balance will not go into negative.
The margin close out level on your account is in place to help ensure you do not lose more money than your deposit. As an added safeguard, we offer Balance Protection Policy and will credit your account to a zero balance if your account goes into negative as a result of trading activity.
The Balance Protection Policy applies across multiple accounts as well, therefore if you have a negative balance in your account and a credit balance in your second account then the credit balance will be used to offset the negative balance. This also applies to joint accounts, where each joint account holder will be responsible for a debit or credit available equally.
The balance protection is open to all clients.
Example of an Automatic Margin Close Out
You have €10,000 equity in your trading account and an open short EUR position against the USD of 5 lot (€500,000) at 1.1500. The margin closeout level of your account is set by ActivTrades as 30% and your maximum permissible leverage at 1:50. Therefore your margin requirement for this trade is the full €10,000 of your equity.
The market unfortunately rises to 1.1650/1.1652, at this level your position is losing $7,600 (152 pips X $50 pip value) or €6,522.48. Your free equity now stands at €3,477.52. If the market rises 11 more pips to 1.1663/1.1665 then your losses would increase to €7,072.43 and your balance decrease to €2,927.57. At this point you no longer hold the minimum of 30% equity of your margin requirement and your position is closed out at 1.4901. Your remaining equity balance falls to €2,927.57.
Segregation Of Client Funds
ActivTrades Corp (Nassau)
As a regulated firm, ActivTrades must comply with all rules and directives set by the Security Industries Act. In respect to Client Assets, PART VII indicated that a company must arrange adequate protection for client assets when it is responsible for them. In the event of insolvency of the company, funds are protected as they are held on segregated accounts which are separate from ActivTrades corporate funds.
The Securities Industry Regulations (SIR), that coincides with the Securities Industry Act, sets out various rules and procedures that must be followed. Among these rules are the guidelines on how to deal with client assets. These include the requirements, methodology and records, reconciliation and acknowledgement of trusts.
Client Fund Insurance
ActivTrades CORP (Nassau)
Client funds individually covered up to USD1,000,000
ActivTrades Corp is a leader in providing additional and extensive protection directly to its customer base and is proud to offer the security and peace of mind of insuring its clients’ funds as standard, with no extra cost to you.
Clients of ActivTrades Corp are individually covered up to USD1,000,000 with Excess of Loss Insurance. The security of our clients’ funds is important to us and therefore we may be able to increase the maximum amount covered according to an individual client’s needs (Terms and Conditions will apply).
What is Excess of Loss Insurance?
ActivTrades Corp has purchased, at no direct cost to clients, separate insurance protection to cover losses, if there is an insolvency event, in excess of USD10,000 and up to USD1,000,000. The ActivTrades Corp Excess of Loss Insurance Policy is subject to Terms and Conditions and will respond only in the event that certain conditions are met.
How much insurance has ActivTrades Corp purchased?
ActivTrades Corp has purchased an aggregate limit of insurance that exceeds the exposed capital (client funds greater than USD10,000) up to USD1,000,000 per client.
Does it cost me anything?
ActivTrades Corp has purchased this insurance policy for your benefit and there is no direct cost to you.
Am I eligible?
ActivTrades Corp’s Excess of Loss insurance is available to all our retail clients.
Who underwrites this policy?
This policy is underwritten by ARCH 2012 and XL Catlin 2003 and other participating syndicates at Lloyd’s of London.
Lloyd’s of London is the world’s specialist insurance market. Lloyd’s is not a company, it is a market where the members join together as syndicates to insure risks. Lloyd’s business works by subscription, where more than one syndicate takes a share of the same risk. Lloyd’s of London currently has an A (Excellent) rating with “Stable Outlook” from ratings firm A.M. Best and an A+ (Strong) rating with “Stable Outlook” from Fitch Ratings and Standard & Poor’s. More information about Lloyd’s of London can be found at www.lloyds.com.
Who is covered?
All clients of ActivTrades Corp whose funds are held in segregated accounts.
What is covered?
- Only the eligible cash and securities of ActivTrades Corp’s eligible clients.
- Investment performance or guarantee is NOT covered. Leveraged products are high risk. With ActivTrades Corp your losses cannot exceed your deposits. It is important that you fully understand the risks involved, and seek independent advice if necessary.
How does it Work?
In the unlikely event that client funds are not fully recovered following the failure of ActivTrades Corp, additional coverage may be available to provide protection above USD10,000 per client. The policy will respond providing the following triggers have been met:
- The declared insolvency of ActivTrades Corp
- Discovery by the insolvency practitioner of a shortfall in segregated client money
- The client paying the first USD10,000 of each claim
How does this benefit me?
Those customers that deposit more than USD10,000 with ActivTrades Corp can now benefit from an insurance policy that protects their funds over and above this amount. ActivTrades Corp is a leader in providing such additional and extensive protection directly to its customer base. With ActivTrades Corp your funds may be protected up to a sublimit of USD1,000,000.
Which other brokerage firms are offering this protection?
ActivTrades Corp is leading the way in providing this additional protection directly to its clients. No other broking entity outside of the UK currently provides such extensive protection for such a broad spectrum of trading activity.