Intro
Most countries have their own unique investor protection schemes with different characteristics.
What are these schemes about? How they are working? What are they covering and to what extent? By answering these questions, we are trying to help you to understand the basic concept of investor protection as well as the nuances of these schemes. It is crucial for investors looking to choose a reliable broker and make informed investment decisions.
To find out which countries offer investor protection schemes and how much they cover, check out the following maps and tables.
Investor protection schemes - an introduction
Investor protection schemes are compensation systems established by national governments and/or industry organizations to safeguard investors from potential losses arising from fraudulent, unethical or other practices leading to the bankruptcy of a broker. These investor protection schemes are providing cash compensation to investors should they suffer a loss as a result of their broker not being able to return their assets.
Some countries have such schemes in place while others don’t. Some of the major jurisdictions that offer investor protection include, for example, the US, the UK, and the EU member states. These schemes offer varying levels of protection and compensation for investors in the event of losses.
Coverage limits in Europe
Country/Jurisdiction | Name of the compensation scheme | Coverage amount | Website/Link to regulator |
---|---|---|---|
Austria | Uniform Protection Scheme | EUR 20,000 | Link |
Belgium | Guarantee Fund | EUR 20,000 | Link |
Bulgaria | Investor Compensation Fund |
EUR 20,000 [BGN 40,000] |
Link |
Croatia | Investor Protection Fund |
EUR 20,000 [formerly HKR 150,000] |
Article 227 (1) of the Capital Market Act Link |
Cyprus | Investor Compensation Fund | EUR 20,000 |
Article 25 (2) of the consolidated Directive DI87-07 of 2019 and Directive DI87-07(Α) of 2020 |
Czechia | Investor Compensation Fund | EUR 20,000 | Link |
Denmark | Depositor and Investor Guarantee Scheme | EUR 20,000 |
Link |
Estonia | Guarantee Fund | EUR 20,000 | Link |
Finland | Investors' Compensation Fund | EUR 20,000 | Link |
France | French Deposit and Resolution Fund | EUR 70,000 | Link |
Germany | Investor Compensation Scheme | EUR 20,000 | |
Greece | Hellenic Deposit and Investment Guarantee Fund | EUR 30,000 | Link |
Hungary | Investor Protection Fund | EUR 100,000 | Link |
Ireland | Investor Compensation Scheme | EUR 20,000 | Link |
Italy | Investor Compensation System | EUR 20,000 | Article 5 of the Decree 485/1997 of the Minister of the Treasury Link |
Latvia | Investor Protection System | EUR 20,000 | Link |
Lithuania | Deposit and Investment Insurance Company | EUR 22,000 | Link |
Luxembourg | Investor Compensation Scheme | EUR 20,000 | Link |
Malta | MFSA Investor Compensation Scheme | EUR 20,000 | Link |
The Netherlands | Investor Compensation Scheme | EUR 20,000 | Link |
Poland | KDPW Investor Compensation Scheme | EUR 20,100 | Link |
Portugal | Investor Compensation Scheme | EUR 25,000 | Link |
Romania | Investors Compensation Fund | EUR 20,000 | Link |
Slovakia | Investment Guarantee Fund | EUR 50,000 | Link |
Slovenia | Guarantee Scheme for Investors' Claims | EUR 22,000 | Article 450(6) of the Market in Financial Instruments Act Link |
Spain | Investor Compensation Scheme | EUR 100,000 | Link |
Sweden | Swedish National Debt Office |
EUR 22,500 [SEK 250,000] |
Link |
United Kingdom | Financial Services Compensation Scheme |
EUR 98,600 [GBP 85,000] |
Link |
Iceland | Depositors' and Investors' Guarantee Fund |
EUR 11,330 [ISK 1,700,000] |
Article 10 of Financial Services and Markets - Act No 98/1999 on Deposit Guarantees and Investor- Compensation Scheme |
Norway | Securities Companies' Security Fund |
EUR 16,955 [NOK 200,000] |
[Norwegian only] |
Lichtenstein | Deposit Guarantee and Investor Compensation Foundation PCC |
EUR 30,770 [CHF 30,000] |
Article 2(1)(12) + Article 39 of Law on Law (dated February 27, 2019) on deposit protection and investor compensation at banks and investment firms [German only] |
Switzerland | Depositor Protection Scheme |
EUR 102,565 [CHF 100,000] |
Link |
Albania | Investor Protection Fund |
EUR 4,597 [ALL 500,00] |
Article 362 of Law No. 62/2020 on capital markets |
Moldova | Investor Compensation Fund |
EUR 1,207 [LEI 6,000] |
[Romanian only] |
Montenegro | Investor Compensation Fund | EUR 20,000 |
Article 345 of Decree on Promulgation of the Law on Capital Market |
North Macedonia | Investor Compensation Fund | EUR 20,000 |
Article 152-j of the Law on Securities |
Serbia | Investor Protection Fund | EUR 20,000 | Link |
Russia | Federal Fund for the Protectionof the Rights of Investors and Shareholders |
EUR 404 [RUB 35,000] |
[Russian only] |
Turkey | Investor Compensation Center |
EUR 22,240 [TRY 500,000] |
[Turkish only] |
Coverage limits outside Europe
Country/Jurisdiction | Name of the compensation scheme | Coverage amount | Website/Link to regulator |
---|---|---|---|
United States | Securities Investor Protection Corporation |
USD 500,000 [including USD 250,000 for cash] |
Link |
Canada | Canadian Investor Protection Fund |
EUR 22,240 [CAD 1,000,000] |
Link |
Australia | National Guarantee Fund |
USD 662,000 [AUD 1,000,000 including AUD 250,000 for cash] |
Link |
ASX Supplemental Compensation Fund [when dealing in futures] |
USD 66,200 [AUD 100,000] |
Link | |
SFE Fidelity Fund [when dealing in futures] |
USD 165,500 [AUD 250,000] |
Link | |
Algeria |
Guarantee Fund |
USD 7,336 [DZD 1,000,000 including DZD 400,000 for cash] |
Article 6 of the Order of 13 Dhou El Hidja 1425 corresponding to 23 January 2005 approving the regulations of the organizing committee and supervision of stock exchange operations n° 04-03 of 24 Rajab 1425 corresponding to September 9 2004 relating to the guarantee fund. [French only] |
Egypt | Investor Protection Fund |
USD 16,210 [EGP 500,000 including EGP 100,000 for cash] |
[Arabic only] |
Jordan | Investor Protection Fund |
USD 14,100 [JOD 10,000 capped at JOD 3,000,000 per member broker] |
Article 15(A) of the The Regulation of Investors Protection Fund in Securities No. (47) for the Year 2018 |
Morocco | Guarantee Fund for Brokerage Firms |
USD 19,645 [DH 200,000 but capped at DH 30,000,000 per member broker] |
[French only] |
Tunisia | Guarantee Fund for Dealers in the Securities and Instruments Market |
USD 9,703 [TND 30,000] |
Article 8 of the Order of the Minister of Finance dated 1 April 2009 laying down the conditions for the constitution, organization and operation of the guarantee fund for customers of the securities and financial products market [French and Arabic only] |
Kenya | Investor Compensation Fund |
USD 365 [KSH 50,000] |
Article 70 (1) of the Capital Markets Act Chapter 485A |
Nigeria | Investor Protection Fund |
USD 865 [NGN 400,000] |
Link |
South Africa | JSE Guarantee Fund |
USD 25,625 [ZAR 500,000] |
Link |
India | Investor Protection Fund |
USD 30,500 [INR 2,500,000] |
Link |
Indonesia | Indonesia Securities Investor Protection Fund |
USD 13,500 [IDR 200,000,000] |
Link |
Pakistan | Centralized Customers Protection Compensation Fund [operated by the Pakistan Stock Exchange] |
USD 1,750 [PKR 500,000] |
Link |
Thailand | Securities Investor Protection Fund |
USD 28,740 [THB 1,000,000] |
Link |
Malaysia | Capital Market Compensation Fund |
USD 21,846 [RM 100,000] |
Link |
The Philippines | Securities Investors' Protection Fund |
For claims of PHP 5,000 [USD 90] or less, the customer shall be paid in full. For claims of more than PHP 5,000 but less than PHP 100,000 [USD 1785] the customer shall be paid the equivalent of 75% of his claim or PHP 5,000 whichever is higher. For claims of PHP 100,000 or more, the customer shall be paid PHP 75,000 [USD 1338]. |
Link |
Japan | Japan Investor Protection Fund |
USD 71,452 [JPY 10,000,000] |
Link |
Hong Kong | Investor Compensation Fund |
USD 63,790 [HKD 500,000] |
Link |
China | Protection originally provided by the (Hong Kong) Investor Compensation Fund is extended to the Shanghai and Shenzen Stock Exchanges via a mutual access program (called Stock Connect) |
USD 63,790 [HKD 500,000] Applicable to certain stocks and ETFs traded on the connected exchnages. |
Link |
Bangladesh | CSE'S Investor Protection Fund |
USD 4,645 [TK 500,000] |
Link |
Taiwan | Investor Protection Fund |
USD 39,111 [NT 1,200,000] |
Link |
South Korea | Korea Deposit Insurance Corporation |
USD 38,280 [KRW 50,000,000 for cash only] |
Link |
A unique tool helping you to stay safe
Despite the importance of investor protection schemes, they are not foolproof. Financial fraudsters and scammers often manage to circumvent the rules and regulations put in place to protect investors. As such, it is essential for investors to remain vigilant and cautious.
To see whether a broker is regulated and a member of an investor protection scheme, check out BrokerChooser's unique Scam Shield tool.