Protecting our clients is our primary goal, for this reason ActivTrades provides important assurances to make trading with us even more secure.


Balance Protection

We protect all of our clients from a negative account
balance.

Segregated Accounts

Your funds are securely held in a segregated client
account.

Additional Security

Our additional insurance protects our client’s capital up to £1 000.000.


Segregation Of Client Funds

As a regulated firm, ActivTrades must comply with all FCA principles for businesses. In respect to Client Assets, principle 10 establishes that a firm must arrange adequate protection for client assets when it is responsible for them. In the event of insolvency of the firm, clients funds are protected as they are held on segregated accounts which are separate from ActivTrades corporate funds.

The Client Assets Sourcebook (CASS), of the FCA Handbook, sets out the rules to holding client assets. These include organisational requirements, segregation methodology, records and reconciliation and acknowledgement of trust.

Further to the client assets protection, our clients are also protected under the (FSCS). This is a fund of last resort for customers of authorised financial services firms in case of default up to a maximum value of £ 50,000 per person. ActivTrades clients can benefit from extra security exceeding the FSCS threshold by up to £1,000,000 per client – via our Excess of FSCS Insurance.


Excess of FSCS Insurance

Client funds individually covered up to £1,000,000

ActivTrades is proud to offer the security and peace of mind of insuring its clients’ funds above the threshold provided by the Financial Service Compensation Scheme (FSCS).

ActivTrades is the first UK broker, authorised to hold client funds, to offer this cover.

This policy is underwritten by QBE Underwriting Limited and other participating syndicates at Lloyd’s of London and comes as standard, at no cost to you. Clients of ActivTrades are individually covered up to £1,000,000 as Excess of FSCS Insurance. Because your funds security is our main goal, we can increase the maximum amount covered according to your needs. (Terms and Conditions apply)

What is the FSCS?

  • FSCS is a fund of last resort for customers of UK authorised financial services firms and provides protection if an authorised investment firm is unable to pay claims against it. For example:
  • When an authorised investment firm goes out of business and cannot return investments or money.
  • The FSCS only provides protection to retail clients who are eligible to claim under FCA COMP rules
    Further information about the Financial Service Compensation Scheme (FSCS) and what they cover can be found on their website

What is Excess of FSCS Insurance?

In addition to the protection afforded to the retail investor by the FSCS, ActivTrades has purchased, at no direct cost to clients, separate insurance protection from QBE Underwriting Limited and other participating syndicates at Lloyd’s of London that provides additional coverage excess of the FSCS guaranteed £50,000 per customer.

This product is totally new to the market and ActivTrades is a leader in the UK in providing such additional and extensive protection direct to its customer base.

The ActivTrades Excess of FSCS Insurance policy is subject to Terms and Conditions and will respond only in the event that certain conditions are met.

How much insurance have ActivTrades bought?

ActivTrades have bought an aggregate limit of insurance that exceeds the exposed capital (client funds unprotected by the FSCS threshold of £50,000 per customer) that sits outside that protected by the FSCS up to £1,000,000 per client. Individual standalone covers beyond that sublimit of £1,000,000 can be arranged.

Does it cost me anything?

ActivTrades buy this policy for your benefit and there is no direct cost to you.

Who underwrites this policy?

This policy is underwritten by QBE Underwriting Limited 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. As at 31 December Lloyd’s was made up of 88 syndicates. The syndicates that underwrite the ActivTrades Excess of FSCS policy are QBE, XL, Markel, Apollo, Chaucer and Aegis. 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?

Retail customers of ActivTrades i.e. those customers whose funds are held in segregated accounts only and who qualify under FCA COMP rules.

What is covered?

  • Only the eligible securities and cash of ActivTrades’ retail customers for the sole benefit of the customers.
  • Investment performance or guarantee is NOT covered. Leveraged products are high risk. With ActivTrades 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 assets are not fully recovered following the failure of ActivTrades, additional coverage may be available to provide protection above the FSCS limit of £50,000 per retail customer. The policy will respond providing the following triggers have been met:

  • The FSCS declared insolvency of ActivTrades
  • Discovery by the insolvency practitioner of a shortfall in segregated customer assets
  • The FSCS paying the first £50,000 of each claim

How does this benefit me?

Those customers that deposit more than £50,000 with ActivTrades can now benefit from an insurance policy that protects their funds over and above the protection afforded by the FSCS. This product is new to the market and ActivTrades is the leader in the UK in providing such additional and extensive protection direct to its customer base. With ActivTrades your deposit is protected up to a sublimit of £1,000,000.

Which other brokerage firms are offering this protection?

This product is totally new to the UK and ActivTrades are leading the way in providing this additional protection direct to its clients. No other broking entity outside of the UK is able to provide such extensive protection for such a broad spectrum of trading activity.


Negative Balance Protection

The interests of our clients is our primary objective and that is why with ActivTrades your balance will not go into negative.

The trade 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 retail clients.

Example of an Automatic Trade 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 Trade out 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.


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