When it comes to professional Forex trading, there are several vital things that make a winning trader. Knowledge and skills coupled with experience, decent trading strategies, sound money management and a reliable broking company. Indeed, any trader needs a reliable partner to reach the interbank market. While, there are many good broking companies that deserve trust and respect, some of them really stand out from the crowd. These are top-ranking companies in the industry. ActivTrades is one of such giants. Apart from offering competitive trading conditions and other beneficial solutions, the company does its best to make trading more secure and reliable. In particular, the company is ready to insure small-scale and big-scale traders…
Up To £500,000 As Client Fund Insurance
ActivTrades is a client-oriented company. It is really proud to be able to insure client funds well above the limit set by the Financial Service Compensation Scheme (FSCS).
In particular, ActivTrades has become the UK's first broker to be authorised to offer this insurance option.
This mentioned policy is backed by such gnats as QBE Underwriting Limited as well as some other participating syndicates at Lloyd’s of London. It comes as standard and is free (no cost) to any client. ActivTrades' clients are personally covered. The sum is up to £500,000, which comes as Excess of FSCS Insurance. Since the security of client funds is one ActivTrades' main goals, the company is ready to boost the max amount covered. (Please note, that Terms and Conditions apply)
More on FSCS
The FSCS is a special fund, some kind of last resort for the customers of British companies authorised to render financial services. It provides financial protection in case an authorised investment company fails to pay claims against it.
For instance, such a situation may occur if an authorised investment company goes out of business and is unable to return investments or money.
The FSCS protects only those retail clients who are eligible to claim under the so-called FCA COMP rules. You can visit the Financial Service Compensation Scheme (FSCS)'s official website for more details on the matter.
More on Excess of FSCS Insurance
On top of the protection available to the retail investor backed by the FSCS, the ActivTrades broking company has purchased, extra insurance protection from such a major insurance company as Lloyd’s of London insurers. The provide extra coverage excess of the FSCS guarantees (up to £50,000 per client).
Apparently, this is a whole new product, with ActiveTrades being the pioneer and leader in the UK in terms of providing such additional and fairly extensive protection directly to its customer base.
However, please keep in mind that the ActivTrades Excess of FSCS Insurance policy is subject to ActiveTrades' Terms and Conditions and will hold true only when certain conditions are met.
More Details
ActivTrades have purchased an aggregate limit of insurance exceeding the exposed capital (i.e. uncovered client funds beyond the FSCS threshold of £50,000 per clinet) - up to £500,000 per client. At the same time, the company says that even individual standalone covers of more than £500,000 are possible.
ActivTrades purchased the mentioned policy for the benefit of all of its customers. The good news is there is no direct cost to the client, os it is free to use.
As we mentioned before, this policy is underwritten by QBE Underwriting Limited and other participating syndicates at Lloyd’s of London.
It should be noted that Lloyd’s of London is a world-class insurance expert.
Lloyd's is more than a company, it is a whole market where all of its members join together in the from of syndicates to insure risks. For now, it embraces over 80 syndicates. The list of the syndicates backing the mentioned policy includes:
Aegis, QBE, Apollo, XL, Markel and Chaucer. You can find more information about Lloyd’s of London by following www.lloyds.com.
The policy covers only ActivTrades' retail customers, i.e. those clients whose funds are stored in segregated accounts only and who qualify under the FCA COMP rules. At the same time, ActivTrades covers only the eligible securities and cash that belong to its retail customers.
Please notice that investment performance or guarantee CANNOT be covered. On top of that, all leveraged products are subject to high risk, which may result in losses exceeding your initial deposit. That is why it is crucial that you fully understand all the risks involved, and seek independent advice if you need it.
How does it Work?
In case there is an unlikely event resulting in a situation when client assets are not fully recovered as the result of an ActivTrades failure, extra coverage becomes available to provide protection to insure the funds above the FSCS limit of £50,000 per retail clinet. The policy will hold true in case of the following triggers:
The FSCS declared insolvency of ActivTrades
Discovery by the insolvency practitioner of a shortfall in segregated customer assets
The FSCS paying the first £50,000 of each claim. The insurance option is available to those clients who have deposited more than £50,000 with ActivTrades.
More details http://www.activtrades.co.uk/index.aspx?page=legal_insurance
