Investor Protection - How It Protects You

Gergely K.
Dec 2021
Our top online broker picks
Interactive Brokers
Visit broker
Charles Schwab
Visit broker
Investor Protection - How It Protects You

Investor protection
Investor Protection Definition

Investor protection means that up to a certain limit, you get your money back if the broker goes into bankruptcy or commits fraud. It is an important factor to consider when you open an account with an online broker. When you open a trading account at a brokerage, you usually get investor protection.

The investor protection amount defines the limit of protection and it can vary from country to country. In Europe the amount of investor protection is usually €20,000, while in the US it is significantly higher, at $500,000. However, some other countries, like Australia, do not provide any investor protection at all.

The investor protection amount is usually guaranteed by a state fund.

Investor protection and beyond - continue learning

Author of this article

Gergely Korpos

Author of this article

With over a decade of experience in financial markets, I've executed thousands of trades as both a commodity trader and an equity portfolio manager. I have hands-on experience in opening accounts with the brokers that are listed on BrokerChooser. As the co-founder and Chief Product Officer (CPO) of BrokerChooser, my mission is to demystify personal investing for all.

Gergely Korpos

Co-Founder, CPO

With over a decade of experience in financial markets, I've executed thousands of trades as both a commodity trader and an equity portfolio manager. I have hands-on experience in opening accounts with the brokers that are listed on BrokerChooser. As the co-founder and Chief Product Officer (CPO) of BrokerChooser, my mission is to demystify personal investing for all.

Everything you find on BrokerChooser is based on reliable data and unbiased information. We combine our 10+ years finance experience with readers feedback. Read more about our methodology

Our top online broker picks

Interactive Brokers Charles Schwab

Follow us

Regional settings

×
I'd like to trade with...