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Investor protection schemes around the world

Written by
Fact checked by
Gyula L.
Updated
Jun 2023

 

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
Link

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

Section 4 (2) of the Investor Compensation Act

Link

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

Link

Norway Securities Companies' Security Fund

EUR 16,955

[NOK 200,000]

Link

[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

Link

[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

Link

Moldova Investor Compensation Fund

EUR 1,207

[LEI 6,000]

Link

[Romanian only]

Montenegro Investor Compensation Fund EUR 20,000

Article 345 of Decree on Promulgation of the Law on Capital Market

Link

North Macedonia Investor Compensation Fund EUR 20,000

Article 152-j of the Law on Securities

Link

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]

Link

[Russian only]

Turkey Investor Compensation Center

EUR 22,240

[TRY 500,000]

Link

[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.

Link

[French only]

Egypt Investor Protection Fund

USD 16,210

[EGP 500,000 including EGP 100,000 for cash]

Link

[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

Link

Morocco Guarantee Fund for Brokerage Firms

USD 19,645

[DH 200,000 but capped at DH 30,000,000 per member broker]

Link

[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

Link

[French and Arabic only]

Kenya Investor Compensation Fund

USD 365

[KSH 50,000]

Article 70 (1) of the Capital Markets Act Chapter 485A

Link

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.

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Author of this article

Zoltán Kormányos J.D.

Legal Eagle Leader | Regulation • Fighting Scams • Safety

I'm a financial regulation enthusiast with more than 5 years of professional experience in the financial and legal sectors as a lawyer. My hands-on expertise covers a range of areas including financial market infrastructures, asset managers, broker-dealers, crypto exchanges and other crypto service providers operating in different jurisdictions such as the US, the UK, and the EU.

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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