For all brokers that are regulated by the Financial Services Authority (FSA) in the UK, there is a compensation scheme in place for up to about GBP 50,000.
So you cannot lose your funds up to the insured amount when your broker goes bust. For example all clients of the failed Man Financial UK will be compensated up to GBP 50,000.
But this does not cover deleted profits by a broker of course. So you have to follow the complaint procedure: First you get final answer from broker, then complain to Ombudsman,
then you get reply from adjudicator from ombudsman office, if you're not satisfied with this reply you can then ask for an ombudsman to look at the case. A lengthy process since
ombudsman has many cases to look at and for the whole financial industry. There are more scammers out there than there are ombudsmans to investigate. That's why it takes a
long time to get to the final ombudsman decision. But if you've been scammed that's your only avenue to get your profits.
So you cannot lose your funds up to the insured amount when your broker goes bust. For example all clients of the failed Man Financial UK will be compensated up to GBP 50,000.
But this does not cover deleted profits by a broker of course. So you have to follow the complaint procedure: First you get final answer from broker, then complain to Ombudsman,
then you get reply from adjudicator from ombudsman office, if you're not satisfied with this reply you can then ask for an ombudsman to look at the case. A lengthy process since
ombudsman has many cases to look at and for the whole financial industry. There are more scammers out there than there are ombudsmans to investigate. That's why it takes a
long time to get to the final ombudsman decision. But if you've been scammed that's your only avenue to get your profits.