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Xtrade regulation and how it scores

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

Facts last checked . Read the full Xtrade review.

Regulation and safety

Regulated by
Belize FSC (4705379); South Africa FSCA (FSP 44681); additional offshore entity
Regulator tier
Tier 2
Register entry
Belize FSC register
Client money segregated
Yes
Held at
Regulated financial institutions; specific bank not prominently disclosed
Negative balance protection
Yes
Compensation scheme
No statutory investor compensation scheme for international clients
Audited by
Independent external auditors
Not available to
United States, Canada, EU residents on the global entity, and other jurisdictions where services are prohibited

Check the licence yourself: the FSCA search of financial services providers.

What this means

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

Xtrade's licence is offshore (FSC). Offshore entities typically offer higher leverage and lighter reporting, and compensation schemes do not apply - the trade-off is protection, not price.

The FSCA licenses derivative providers in South Africa without a fixed retail leverage cap, so headline leverage is often higher than an FCA or ASIC entity may offer.

An FSC licence (Mauritius or Belize, depending on the entity) is an offshore authorisation with lighter reporting duties than a tier-one regulator.

Client money is held separately from the firm's own money, at Regulated financial institutions; specific bank not prominently disclosed. 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 No statutory investor compensation scheme for international clients, which pays eligible clients up to its limit if the firm fails owing client money.

Questions about Xtrade regulation

Is Xtrade tier-one regulated?

Xtrade's strongest licence is recorded as Tier 2.

Who regulates Xtrade?

Xtrade is regulated by Belize FSC (4705379); South Africa FSCA (FSP 44681); additional offshore entity.

Does Xtrade offer negative balance protection?

Yes. Xtrade 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 Xtrade