FXPRIMUS, a provider of foreign exchange, contracts-for-difference (CFDs) and commodities, has bolstered the protection of its clients’ insurance measures, bringing all client funds under the protection of up to €2.5 million ($2.65 million), according to a company statement.
The latest coverage constitutes one of the largest efforts in the FX industry, besting previous measures implemented by other brokers such as ThinkMarkets, which renewed its £1 million ($1.24 million) customer insurance protection back in September. Other brokers in Europe and the UK offer varied levels of protection, but they seldom cross the £1 million threshold, and none are at the level announced by FXPRIMUS.
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Across a more broad-based field, brokerages from around the industry typically rely on the use of insurance policies or strong capital backstops. For example, per the Financial Services Compensation Scheme (FSCS), all brokers regulated by the UK’s Financial Conduct Authority (FCA) offer their clients a minimum of £50,000 ($62,000).
FXPRIMUS latest effort will also see a total coverage of clients’ accounts not only with its existing coverage as stipulated by CySEC, but with an additional contingency for all clients of all account types of up to €2.5 million. The newly announced coverage will also be available to live account holders of FXPRIMUS with no additional fee, insured by Lloyd’s underwritten policy.
According to Costas Kappai, CEO of FXPRIMUS, in a statement on the latest client protection measures: “It gives us great pride to offer such a ground breaking service to our clients, whom deserve nothing but the best.”