In the UK we are subject to some of the tightest client money rules in the world. By default (and unless agreed in writing with us), we classify all clients as Retail Clients, the classification that affords our clients the highest level of protection.
We hold your money in ring-fenced, segregated bank accounts at Barclays. These accounts are separate from Core Spreads’ money and can never be used for operational expenses, hedging or any purpose not directly related to your account with us.
We have purposely sought matched principal regulatory permissions. We pass all principal risk to market counterparties. This means your funds are held in an entity that doesn't take principal risk, a subtle but important benefit when compared to how some of our competitors work.
When you become a Core Spreads client you are covered by the UK’s Financial Services Compensation Scheme, which guarantees your funds up to £85,000 in the very unlikely event we go out of business and there was a shortfall in the segregation.
If the bank holding your funds goes into default, you are covered up to £75,000. The scheme is set up primarily to cover individuals, so do check the FSCS website if you have any questions about your eligibility.