Does LYNX fall under FCA regulation as of September 2023?
Unfortunately no, LYNX is not regulated by the FCA.
But LYNX is considered reliable as it is regulated by the top-tier AFM in the Netherlands.
The broker's reliability is also underpinned by offering investor protection up to IBIE (parent company) has investor protection of up to €20k.
Here are the key info snippets you need to know!
- LYNX is regulated by authorities in Netherlands, Ireland.
- The broker's regulator offers IBIE (parent company) has investor protection of up to €20k.
- Remember, all the brokers you find on BrokerChooser are regulated by at least one top-tier financial authority
Why is FCA regulation important?
The UK's Financial Conduct Authority (FCA) is widely considered as being one of the top-tier regulators in the brokerage world. Brokers and other financial service providers overseen by the FCA are held to a high standard of conduct and must comply with strict regulations. This could provide extra layers of safety and protection for you.
In this article, we will focus on brokers that offer CFD trading, as it is a high risk instrument. You trust LYNX with your money, so it is crucial to know, if it is regulated by a trusted authority, and what level of protection you can expect when trading CFDs.
Keep in mind that the layers of protection offered by FCA, including their specific investor protection scheme, is only available to you, if you open an account with the broker's entity that falls under the UK regulation, the FCA. So you either need to reside in the UK, or open an account with the broker’s UK entity - and several brokers allow non-UK residents to do that. In any case, it is a great sign of safety if a broker is regulated by the FCA.
Is LYNX legit?
Don't worry though, if LYNX is not regulated by the FCA. LYNX is considered reliable as it is regulated by the top-tier AFM in the Netherlands.
We've put together the aspects that make a broker legitimate, so you can judge whether you consider LYNX legit. We also compared LYNX with two similar brokers.
Country of regulation
|IBIE (parent company) has investor protection of up to €20k||€100k for cash and €20k for securities||€100k for cash and €20k for securities|
Broker listed on stock exchange
Annual financial statements on website
Mobile two-step authentication
Broker ownership transparency
Broker management transparency
Broker is audited by the Big Four
Data updated on September 21, 2023
Here is the full list of regulators:
- Europe - Netherlands Authority for the Financial Markets (AFM)
If you want to see what other CFD brokers might work for you, see our top recommendations for best CFD brokers for 2023!
If you are interested in what protection FCA provides, read on!
What is FCA regulation for CFD traders?
The FCA provides a number of layers of safety for CFD traders. Here are some of the key measures:
- Client money protection: FCA-regulated brokers are required to segregate client funds from the firm's own funds, which means that client funds are kept in separate bank accounts and are not used to cover the broker's own expenses or debts.
- Negative balance protection: Brokers are required to provide negative balance protection, which means that clients cannot lose more than their account balance. If a trader's account balance becomes negative due to market movements, the broker is required to absorb the losses.
- Disclosure of risks and costs: Brokers need to provide clear and transparent information about the risks and costs of trading CFDs.
- Leverage limits: FCA-regulated brokers are required to set leverage limits on CFD trading. The FCA has set maximum leverage limits for retail traders, its size depending on the different assets.
- The FCA operates the Financial Services Compensation Scheme (FSCS), which gives you protection up to £85,000 if your financial service provider goes out of business. The FSCS itself is free to consumers.
How do I know if my CFD broker is FCA regulated?
We have checked it for you, and LYNX is not regulated by the FCA. But LYNX is considered reliable as it is regulated by the top-tier AFM in the Netherlands.
To make sure you are protected, you need to know if you have signed up with the broker's entity that is covered by the FCA. Different countries or regions set different rules for financial service providers, so brokers sometimes have different entities in different countries or regions.
By and large it is your home country (i.e. your residence, not your passport) that will determine under which regulator you'll fall, should there be more than one regulator. Also, check the broker's website for information about its regulatory status. The website is likely to display the broker's regulatory status and the name of the regulatory authority at the bottom.
To double check if your CFD broker is under FCA regulation, you could also check on FCA's website:
- Go to the FCA's Financial Services Register.
- Enter the name of your CFD broker or its registration number (which you can usually find on the broker's website).
- Look for your broker in the search results.
- Check the details of the broker's registration, including its regulatory status and the services it is authorized to provide.
If your CFD broker is regulated by the FCA, its details should be listed on the Financial Services Register.
The FCA also keeps a useful list of companies that attempt to scam traders, check it out.
Looking for a CFD broker?
If you are looking for the brokers that offer the best CFD trading conditions, check our top recommendations of the best CFD brokers in the world.
If you have any feedback or questions, feel free to contact us via email!
Check out this short video for a behind-the-scenes peek into how our experts personally test and evaluate brokers.