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Investor Protection - How It Protects You

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Investor Protection - How It Protects You

Investor protection
Investor Protection Definition

Investor protection means that up to a certain limit, you receive 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 varies country by country. In Europe the amount of investor protection it is usually € 20,000, while in the US is significantly higher, $ 500,000. Some other countries like Australia does not provide any investor protection.

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

Investor protection and beyond - continue learning

Gergely Korpos

Gergely Korpos

Co-founder, CPO

Author of this article

Gergely is the co-founder and CPO of Brokerchooser. His aim is to make personal investing crystal clear for everybody. Gergely has 10 years of experience in the financial markets. He concluded thousands of trades as a commodity trader and equity portfolio manager.

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

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