In the security FAQ checked on 9 October 2026, FOREX.com UK quoted potential FSCS cover of £120,000 when a firm becomes insolvent or stops trading, without specifying the category of failure. The distinction matters because investment-firm and bank-deposit claims use different limits.[1]
StoneX Financial Ltd provides the UK brokerage account. Its client money is held as part of an investment service, with any deposit-protection question arising separately at the bank holding that money.[2][3][5]
Four mechanisms with different jobs
What each protection addresses
| Mechanism | Trigger or purpose | Limit or effect |
|---|---|---|
| Client-money segregation | Separate client funds from the broker’s operating money | Client-money accounts and reconciliation requirementsSource 1Source 3 |
| Retail negative-balance protection | Losses on leveraged CFD positions | Limits the retail client’s liability for connected CFD trading to funds in the accountSource 6 |
| FSCS investment protection | Valid covered claim when an investment provider fails | Up to £85,000 per eligible person, per firmSource 5 |
| FSCS bank-deposit protection | Failure of an authorised bank, building society or credit union | Standard limit £120,000 per eligible person, per authorised deposit-takerSource 5 |
A separate case can arise if the bank holding pooled client money fails. FSCS says an eligible person’s beneficial interest in a client or pooled account can fall within deposit protection, aggregated with that person’s other eligible deposits at the same bank or banking group. That bank-failure route is distinct from investment compensation following failure of the broker itself.[8]
Consider an eligible person with £90,000 of direct deposits and a £40,000 beneficial interest in a broker’s client account at the same authorised deposit-taker. The combined £130,000 bank exposure exceeds the standard £120,000 limit by £10,000, assuming no special temporary-high-balance cover. This hypothetical isolates bank-failure aggregation; it makes no assumption about which bank FOREX.com uses.[8][5]
Segregation governs how client money is held
FOREX.com says it holds UK retail funds in segregated accounts and hedges with its own money. CASS 7 requires firms to separate client money and reconcile their records. These are custody controls during normal operation, which explains why segregation should be assessed independently of the amount of compensation.[1][3]
Eligibility after a provider fails
FSCS investment compensation depends on an authorised provider, a covered activity and an eligible claim. A shortfall in money or assets after a provider fails may qualify; ordinary investment losses fall outside that route.[4]
Professional classification changes trading protection
FOREX.com excludes professional accounts from negative-balance protection. UK retail CFD rules combine leverage limits, margin close-out and an account-level cap on trading losses. Professional classification therefore changes the trading safeguards while the account is operating, separately from the eligibility assessment after a provider fails.[7][6]
Sources & further reading
- FOREX.com UK: security FAQs and client-money disclosures FOREX.com · Accessed 9 Oct 2026
- FOREX.com UK: important information and operating company FOREX.com · Accessed 9 Oct 2026
- FCA Handbook CASS 7: client money, statutory trust and acknowledgement letters Financial Conduct Authority · Accessed 9 Oct 2026
- FSCS: investment compensation requirements and exclusions Financial Services Compensation Scheme · Accessed 9 Oct 2026
- FSCS: coverage and separate compensation limits Financial Services Compensation Scheme · Accessed 9 Oct 2026
- FCA PS19/18: retail CFD leverage, margin closeout and loss protection Financial Conduct Authority · 1 Jul 2019 · Accessed 9 Oct 2026
- FOREX.com UK: professional account conditions FOREX.com · Accessed 9 Oct 2026
- FSCS deposit protection for beneficial interests in client and pooled accounts Financial Services Compensation Scheme · Accessed 9 Oct 2026