How it works
Where it applies, it can prevent a market gap from creating a debt to the broker. Coverage can depend on jurisdiction, client classification and product.
What to check
Verify the protection in the legal terms for the exact entity serving the account. Do not assume a global broker applies the same rule in every country.
- Verify the legal entity
- Check client eligibility
- Do not confuse debt protection with loss prevention
Limits and risks
The protection limits account debt; it does not stop the account balance from falling to zero. It also may not apply to professional or otherwise excluded customers.
Primary sources
BIS 2025 Triennial Central Bank Survey↗FCA: Contracts for difference (CFDs)↗General information only. Investment products can lose value, and terms, fees and regulation can change.