LMAX Broker always seem to have sub 1 pip spreads during the UK day!

[tar]

I spoke to my current broker's compliance officer. He told me that compensation is determined by the location of the brokers official/main office. For example if a broker has a UK office and his client is from Australia then the Australian client will have access to compensation.
However, if the broker is based in Cyprus (main office) and opens a satellite/branch office in the UK then their clients are not covered.

Makes sense

Not sure about that , take for example MFglobal case , i think what matters is whether the firm is regulated by the FCA or not ...

 

[AARasheed]

Not sure about that , take for example MFglobal case , i think what matters is whether the firm is regulated by the FCA or not ...

Man's business spanned multiple continents. I actually had a substantial amount with them. Luckily I was compensated the full amount. Whilst I was speaking with the auditors, they said the FSA regulated entity's (based in Sugar Quays, London) clients will receive most of their money back.

There are exceptions; a one-off system was used for UK clients was implemented when Icelandic banks went bust. Eventhough they weren't regulated by the FSA, any UK person who lost money with them, received max £50k back.