What protections do FCA regulated brokers offer UK clients?
Verdict
- FCA-regulated brokers give UK retail clients capped leverage, negative balance protection, segregated client money and, at firms such as Pepperstone, FSCS compensation for eligible clients up to £85,000.
- Pepperstone Limited (FCA 684312) is our top pick because it publishes each of these protections on its UK site, together with a £10 card minimum and raw-spread pricing.
- Guaranteed stop-loss orders are an extra some FCA firms sell (Capital.com, IG, CMC Markets, Spreadex, StoneX); Pepperstone does not offer them.
- Most of these protections apply only while you are classed as a retail client; opting up to professional status removes them.
An FCA licence is not a single guarantee; it is a set of specific rules that apply to retail clients. Here is what each one does, which brokers publish it, and why Pepperstone is our pick for UK traders who want all of them stated plainly.
The protections Pepperstone lists for UK retail clients
Pepperstone Limited, registered in England and Wales (08965105) and authorised by the FCA under reference 684312, sets out its retail protections in one place. It also publishes the share of its retail accounts that lose money (73.6%), which tells you more about the risk of the product than any marketing page.
- Leverage limits: 1:30 major FX, 1:20 major indices and gold, 1:10 other commodities, 1:5 shares.
- Negative balance protection: a negative retail balance is returned to zero.
- Segregated client money at top-tier banks.
- FSCS compensation for eligible clients up to £85,000.
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Which FCA brokers publish which protections
Negative balance protection is widely published; FSCS figures are not, in our data. A dash means we could not verify it from the broker's own pages, not that the protection is missing.
| Broker (FCA ref.) | Negative balance protection | Guaranteed stops | Spread betting |
|---|---|---|---|
| Pepperstone (684312) | Yes | No | Yes |
| Capital.com (793714) | Yes | Yes | Yes |
| IG (195355 / 114059) | Yes | Yes, premium if triggered | Yes |
| CMC Markets (173730) | — | Yes, fee refunded if not triggered | Yes |
| Spreadex (190941) | Yes | Yes | Yes |
| Trading 212 (609146) | Yes | None found | None found |
| Plus500 (509909) | Yes | Yes, via a wider spread | None found |
The FCA crypto ban and what it means for your account
Since 6 January 2021 the FCA has banned the sale of crypto derivatives, including CFDs, to retail consumers. That is why Pepperstone's UK site has no retail crypto page and lists crypto only for professional clients. If a provider offers you crypto CFDs as a UK retail client, check which company and which country's rules you are signing up under.
What you lose if you become a professional client
Pepperstone UK lets clients who meet two of three tests opt up: ten significant trades per quarter over the past year, a financial portfolio above €500,000, or at least a year in the financial sector with derivatives knowledge. In return for leverage of up to 1:500 on FX, the protections change.
- Negative balance protection no longer applies, as Pepperstone's professional page states.
- Retail leverage caps no longer apply, so losses can grow much faster.
- Ask the firm in writing which other retail protections, including compensation eligibility, you would give up.
What FCA protections do not cover
None of these rules protects you from losing money on a trade. Stop-loss orders can still slip at Pepperstone, whose UK terms say it cannot guarantee a stop's fill level. If a guaranteed exit matters to you, Capital.com offers guaranteed stop-loss orders under its own FCA authorisation.
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Sources
Protections as stated by each firm and by the FCA.
Is my money safe with an FCA-regulated broker?
Safer than with an unregulated one, not risk-free. At Pepperstone UK, client money is segregated and eligible clients are covered by the FSCS up to £85,000, but market losses are never covered.
Can I lose more than I deposit with a UK broker?
Not as a retail client of a firm offering negative balance protection, such as Pepperstone, Capital.com, IG or Spreadex. Professional clients can.
How do I check a broker's FCA status?
Search the FCA register for the exact company named in your client agreement and compare the firm reference number with the one on the broker's website. For Pepperstone that is Pepperstone Limited, 684312.
Trading on margin magnifies losses as well as gains. Spread bets and CFDs are complex and high-risk: 73.6% of retail investor accounts lose money when trading them with Pepperstone Limited. Fees and terms change, so confirm them on each broker's own site before you trade. Not investment advice.