Increased asset protection for UK customers

Currently customers registered under the UK entity will be compensated £85000 in case of insolvency.

Customers under the EU entity up to £1.02m.

It would be great to offer increased protection for UK customers as well.

I would be even willing to pay a small monthly fee for the additional security.

@HuskyDogg care to share some more details where EU customers are protected up to £1.02m - there was a lot of chat post Brexit that EU customers were worse off (protection wise), so how have they suddenly got a better deal?

Sure, here it is: How is my money safety guaranteed? – Trading 212

EU law covers up to €20K and T212 provides additional €1m insurance by Lloyd’s , so €1.02m in total.

Well the fscs & ICF are guaranteed protection on cash government backed - We don’t know what the 1.0m Lloyds insurance covers so don’t get to excited until you’ve seen the T&C’s to determine if it’s what the paper it’s written on

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There has been a lot of talk about this, but I am still convinced that the mentioned insurance of £85,000 refers to money in the bank, not to stocks, etc. For example, if you have £200,000 in stocks and £50,000 in cash on your Trading 212 brokerage account, that £50,000 will be held in a bank account, such as JPMorgan Chase Bank. If JPMorgan Chase Bank goes bankrupt, you will not lose that £50,000 because the government guarantees up to £85,000. In short, the £85,000 applies exclusively to money held in the account. The stocks you own should be yours (unless they are borrowed), and they will not disappear in case Trading 212 goes bankrupt, as they are held in an account with IBKR.

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This is where collateral comes into play.

What is an interesting read is if you search for failed UK brokers - and what has happened historically.

In the end, no other broker afaik offers more than the regulatory protection guidelines, and we do not know exactly the terms of the EU entity deal to compare.

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It would be great if one from T212 @Team212 could answer why customers of the UK entity are insured for less amount than those in the EU entity.

Our two entities fall under different regulators, so customers are subject to different compensation.

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Now don’t quote me on this, but what I understood the last time we had this debate is the other way around.

Cash on UK entity is insured up to 85k£, while cash on the EU is insured up to 20k€. The Lloyd 1M€ insurance, if i recall correctly, is not per customer, but for the whole entity?

In any case, I wouldn’t mind a little refresher from @Team212 on who is insured by how much :person_shrugging:

The additional insurance for up to 1M EUR is per client.


Oh well nvm then :joy: Why hasn’t my account been moved to the EU entity yet then? :joy:


I’m also European, it would be great if my account could be moved to the EU entity.

Is it possible @Bogi.H?

Although English isn’t my mother tongue, it seems quite simple the FSCS protection:

Of course the FSCS doesn’t cover the market, credit and other risks related to the financial instruments itself. Only the counterparty risk, aka financial intermediaries regulated in UK.

@Zergui, @HuskyDogg, that’s not possible right now. But if that’s an option at some point, I’ll update the thread.

On a side note, all EU citizens who create new accounts will be onboarded in Trading 212 Markets Ltd.

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