CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 75.5% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.

How we keep your funds safe

When you open a trading account with Pepperstone, we can assure you that as a regulated entity, your funds are protected according to local regulatory requirements. There are a number of measures we implement so our clients put their trust in us to keep their money protected.

  • Pepperstone EU Ltd is authorised and regulated by the Cyprus Securities and Exchange Commission (CySEC), license number 388/20, Registration number 388/20.
  • Your money is held in segregated client bank accounts at regulated banks within the European Union.
  • All client money is distributed across major banks regularly assessed against Pepperstone’s risk criteria.
  • Your money and assets will never be merged with Pepperstone’s own money and assets.
  • Pepperstone does not use client money for hedging trades with other counterparties.
  • All client money and assets are protected from creditors in the unlikely event Pepperstone goes into liquidation.

What does Pepperstone do with my funds?

Pepperstone is authorised and regulated by the Cyprus Securities and Exchange Commission (CySEC). The CySEC enforces strict client money and client asset rules which govern exactly what Pepperstone can do and how we must do it.

As a client, your money is held separately from Pepperstone’s own funds. Therefore, your money is protected and unavailable to creditors of the firm, if the firm were ever to go into liquidation.

Where does Pepperstone hold my funds?

We hold client funds in segregated bank accounts at a number of main banks across Europe. In doing so, we ensure that money remains easily identifiable as the ‘client money’ and that Pepperstone and its creditors will never have any charge or retention over it.

What happens to my funds if Pepperstone goes into liquidation?

In the unlikely event of Pepperstone’s liquidation, our retail clients would have their share of segregated money returned, but with an administrators’ cost for handling and distributing these funds subtracted.

Funds lost as a result of liquidation, up to an amount of €20.000, may be compensated for under the Investor Compensation Fund (ICF) scheme. Please see more information under "Investor Compensation Fund" section below.

What happens to my funds if one of Pepperstone’s holding banks goes into liquidation?

If bank liquidation were to occur, any losses would be shared by clients in proportion to the share of funds held with that failed bank.

Investor Compensation Fund

Pepperstone EU Ltd is a member of Cyprus Investor Compensation Fund, of the Republic of Cyprus. The purpose of the ICF is to secure investors’ claims against ICF members by enabling the payment of compensation, provided that the necessary preconditions are fulfilled.

The ICF provides a ‘safety net’ for eligible (“covered”) clients claims (i.e. Retail clients only) in the case the ICF has determined that Pepperstone appears, for reasons directly related to its financial circumstances, to be unable to meet its obligations arising out of investors' claims.

The maximum limit of coverage will be either the 90% of the cumulative covered claims of the covered client, or the amount of €20.000, whichever is lower.

Therefore coverage = Min (90%*total claimed amount, €20,000).

Find out more on ICF, covered clients and eligibility rules here: ICF information

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