ThinkMarkets, a brokerage offering a foreign exchange (FX), contracts-for-difference (CFDs), and metals products, has renewed its £1 million ($1.3 million) additional customer insurance protection, currently pegged as one of the most robust levels of compensation being deployed, relative to other brokers in the UK, according to a company statement.
Many brokerages from around the industry routinely rely on the use of insurance policies or strong capital backstops. In addition, 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.
Changing the Face of AML with Self Service AnalyticsGo to article >>
However, ThinkMarkets has opted to exceed this threshold with an additional offer of £1 million protection for each client. The move is important as it helps articulate an ongoing commitment to security for retail clients, namely one that has gone far beyond the minimum levels advocated by regulatory regimes.
In most scenarios, the usage of such policies are typically not utilized on a regular basis, however the past two years have seen two large events shake the FX industry, including the Swiss National Banking (SNB) crisis and the more recent Brexit referendum.
According to Faizan Anees, co-founder of ThinkMarkets, in a recent statement on the renewal of the insurance policy: “Maintaining investor protection and ensuring their security is paramount to our organisation.”
“We are proud to be able to call our comprehensive and additional offer of £1million insurance protection the highest amount currently available in the UK market. We take security very seriously and is a clear demonstration that we continue to strive for excellence in client service,” he added.