What actually happens to your money if a regulated broker fails -- and why the answer depends entirely on which specific entity and regulator you're actually dealing with.
"Regulated" doesn't automatically mean "your money is protected if the firm fails" -- what protection exists, and how much, depends entirely on which specific regulator licenses the exact entity you've signed up with.
Up to €20,000 per eligible retail client if a CySEC-licensed Cyprus Investment Firm fails. See our CySEC page for detail.
Up to £85,000 per eligible retail client if an FCA-authorised firm fails. See our FCA page for detail.
Typically no statutory compensation scheme at all. See our Seychelles FSA page for detail.
Many brokers operate multiple legal entities under one brand -- a CySEC-regulated EU entity and a Seychelles-regulated offshore entity, say -- each with its own separate client base and its own separate (or absent) compensation cover. Signing up through the wrong regional website, or being onboarded into the offshore entity because you're outside the EU/UK, can mean the compensation scheme you assumed applied to you simply doesn't. Always confirm, in writing from the broker, exactly which legal entity your account is held with, and check that entity's specific licence -- not just the brand's general regulatory reputation -- against the relevant register.
See all regulation pages, or every broker holding this type of licence under Best Brokers.