London-headquartered multi-asset brokerage ActivTrades has taken additional steps to safeguard its clients, ushering in a new threshold of insurance up to £1.0 million. ActivTrades’ substantial increase in client fund protection insurance vastly exceeds the UK’s Financial Services Compensation Scheme (FSCS), making it one of the highest levels in the industry.
Stipulated under UK law, brokerages including ActivTrades are covered under the FSCS, which provides protection to clients if an authorized firm is unable to pay claims against it, up to a figure of £50,000 per client. ActivTrades had already exceeded this threshold, offering client funds protection insurance from £500,000 – its latest upgrade will see this level raised to £1.0 million.
This action was echoed by a company spokesperson, who commented: “ActivTrades ensures that at all times there is sufficient aggregate insurance cover for all clients of the broker up to the single claimant limit of £1m.”
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The increase reflects a continued commitment to help shield its customer base, and it in no way saddles clients with any additional costs.
The upgraded protection will also provide further assurance to clients with significantly larger investments. According to ActivTrades’ Finance Director Juan Scarabino: “Our corporate values centre on the needs of our clients and our decision to increase the level of protection we offer is just another example of this.”
“In times of rapid industry changes, the market requires some degree of security and we’re pleased to say we go the extra mile. For example we implemented Negative Balance Protection back in 2013. Our global customer base of over 50,000 is increasing year-on-year and in the second quarter of 2017 we recorded nearly 20 000 active traders and an average monthly trading volume close to $90 billion from January to July 2017. This proves that we are successfully meeting the market’s expectations,” he explained.
The freshly augmented client protection measures follow on the heels of ActivTrades’ recent strong FY financial results, which displayed a rise in profits by a third to £12.8 million for 2016. At year’s end, the capital of ActivTrades PLC stood at £39.5 million, with net deposits and clients all registering healthy gains.