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HYCM regulation and how it scores

Regulation carries the heaviest weight in the score, which is why it is scored first. Here is HYCM's licensing and the protections behind it.

Facts last checked . Read the full HYCM review.

Regulation and safety

Regulated by
FCA (186171); DFSA (F000048)
Regulator tier
Tier 1
Register entry
FCA Financial Services Register, FRN 186171
Client money segregated
Yes
Held at
Tier 1 banks
Negative balance protection
Yes
Compensation scheme
FSCS up to £85,000 for eligible UK clients
Audited by
Independent external auditors
Not available to
Afghanistan, Belgium, Hong Kong, United States and other restricted/sanctioned jurisdictions

Check the licence yourself: the FCA Register, the DFSA public register.

What this means

Regulation carries the heaviest weight in the score, which is why it is scored first.

HYCM holds a tier-one authorisation from FCA. That matters more than any headline spread: it determines your leverage cap, whether losses can exceed your deposit, and what happens to your money if the firm fails.

The FCA caps retail leverage at 1:30, mandates negative balance protection, and covers eligible clients under the Financial Services Compensation Scheme.

The DFSA regulates from the Dubai International Financial Centre, a separate legal jurisdiction from the wider UAE.

Client money is held separately from the firm's own money, at Tier 1 banks. That separation is what makes your balance recoverable if the company fails, rather than part of the pool its creditors divide up.

Negative balance protection applies, so a losing position cannot take the account below zero and leave you owing the broker money.

Covered by FSCS up to £85,000 for eligible UK clients, which pays eligible clients up to its limit if the firm fails owing client money.

Questions about HYCM regulation

Is HYCM tier-one regulated?

HYCM's strongest licence is recorded as Tier 1.

Who regulates HYCM?

HYCM is regulated by FCA (186171); DFSA (F000048).

Does HYCM offer negative balance protection?

Yes. HYCM offers negative balance protection, so a losing position cannot leave you owing the broker more than your account held.

Regulation at brokers under the same regulator

More about HYCM