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 clients’ capital up to £1,000,000.

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 close 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.

ActivTrades PLC (London)

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.


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 Securites Industry Regulations (SIR), that coincides with the Securities Industry Act, sets out various rules and procedures that must be followed. Among these rules is the guidelines on how to deal with client assets. These include the requirements, methodology and records, reconciliation and acknowledgement of trusts.

 


ActivTrades PLC (London)

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.

Am I eligible?

FSCS protection and ActivTrades’ Excess of FSCS insurance is available to all our retail (non-professional) clients. Our professional clients will normally be eligible to make a claim so long as your account with ActivTrades is not your main trade or business. If you need further information on this please contact us.

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 2017 Lloyd’s was made up of 95 syndicates. The syndicates that underwrite the ActivTrades Excess of FSCS policy are QBE, XL, Markel, Apollo, Chaucer, Aegis and Arch. 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, an AA- (Very Strong) rating with “Stable Outlook” from Fitch Ratings and an A+ (Strong) rating from 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 recompense clients 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.

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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.

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