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GlossaryRegulation & safety

Investor compensation scheme

A jurisdiction-specific arrangement that may compensate eligible customers when a covered firm cannot meet certain obligations.

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Do not confuse

Common comparison error

An investor compensation scheme is not insurance against unsuccessful trades and does not automatically cover every brand affiliate, balance type, or product.

Practical use

How to verify Investor compensation scheme

Read Investor compensation scheme together with Authorised firm, Client-money segregation, Regulatory permission. The comparison must preserve the exact rule, value, state, and evidence described below.

A neutral example

The scheme covers eligible retail claims against one authorized entity up to its published cap after firm failure, but excludes trading losses and an offshore affiliate. The review records those boundaries beside the account agreement.

Evidence path

Where to verify Investor compensation scheme

Use the source that governs the exact contract, account, entity, or platform state. A general definition cannot replace current broker terms.

Official register and warning listMatch the exact legal entity, domain, reference number, permitted product, client type, jurisdiction, and complaint route.
Investor.gov binary options guidanceReview the SEC investor-education warning on binary-options fraud patterns.Open source