Large portfolio Value - Is it Safe!

Just a quick simple question please. Still a beginner!!

If over the years you get to build a portfolio value that is above the FSCS (£85,000) what do most people do? (I’m years away from anything like that figure)

My guess is that most people with stock market investments of over £1m are content to have them with a single broker. They may have more than one broker for accidental, life history, reasons, but not because they worry about FSCS protection. Will someone with £850,000 really want to maintain accounts with 10 different brokers?

That said, someone with £1m is probably pretty picky about where they put money. It would be interesting to see a histograms of the Schroders, Rathbones, Hargreaves Lansdown, Robinhood, Trading 212 client account sizes, though I know that is far too commercial sensitive. A firm like Rathbones requires a minimum of £1m.

I cannot speak for most people. But one of the reasons I chose Trading212 was because of the FSCS (£85,000) guarantee. Before then I have not heard of them and was unsure whether to go with the platform. Compared to Free trade which I have heard alot more about. Although I am glad I went with Trading 212.

So in my case I would move some of my portfolio to another provider to be on the safe side.

yes, it’s safe.

I have portfolio over the 85k limit, well over it into 6 figures and I just put it all in one platform , (T212 of course)

other threads on the forum discuss safety etc. the company would have to go bust which is extremely unlikely event, I wonder if that 85k limit has ever been used by any company…can’t seem to find any examples.

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why are you talking about a one million portfolio? OP was asking about portfolios over 85k.

He was trying to use it as an example saying people with £1M wouldn’t be using 10 brokers

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sure, well I think with investment brokers the 85k protection works different than say a bank. From what I understand brokers should be storing the money people invest separated from the business (which I’ve seen T212 say they do) so if the business goes bust the investments are still safe and untouched then returned to people in full, only thing that would mess this all up is if there is fraud and they aren’t actually storing the money and some or all is missing when they go to check which I would find an extraordinary event. Someone correct me if that is wrong. Another rare scenario would be the bank or banks that T212 use go bankrupt, it’s all very far fetched scenarios.

Free cash is kept in a bank account, shares are done through IB. Your shares should be returned to you, £85,000 is worst case scenario

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I assume the same FSCS cover applies to Irish customers with the conversion rate into euros from 85,000 pounds. Anybody know off the top of their head?

Afaik should apply to all client accounts with the UK T212, whichever country they are from.


Some Vanguard documentation suggests that there are other considerations that determines if you have fscs protection. For example where funds are domiciled

Suggests that Irish domiciled funds may not be under fscs

If you own investments domiciled beyond the UK – say in Ireland or Luxembourg – then the FSCS safety net doesn’t protect you at all. Instead, you may fall under the aegis of a much less generous scheme, and you may not even get that.

However, @Richard.W makes the best point I think regardless of cover. If you’re worried about fscs protection for your investments, you probably shouldn’t be using that broker. No ones splitting their money up into multiple brokers (well some people are but it’s unreasonable imo) because they trust the reliability of their broker and the structure of the brokerage.

That makes sense about the domiciled funds, thanks for that.


and other answers in this might be helpful