Kenneth J725_ Gonzalez#80

查看翻译

What is investor compensation and how does it protect forex traders?

Investor compensation schemes reimburse clients if brokers fail. Examples: FSCS (UK) covers up to £85,000, CySEC’s ICF covers €20,000, while ASIC has no compensation scheme but enforces fund segregation. Institutions rarely rely on compensation, but retail traders see it as a safety net. Benefits: reduces fear of broker insolvency. Risks: schemes don’t cover market losses—only broker default. Investor compensation highlights that regulation is layered: prevention first, but insurance exists for last-resort protection.