Is Trading 212 FSCS Protected? Find Out If Your Money Is Safe
Dom Farnell
Co-Founder
An investor and blogger with a focus on financial markets and wealth management. He’s dedicated to helping others make informed investment choices through straightforward and engaging content.
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Last Updated 17/03/2025
Quick Answer:
Is Trading 212 FSCS Protected? Yes, Trading 212 is FSCS protected, but only for Invest and ISA accounts, covering up to £85,000 if the broker fails. CFD accounts are not covered. Always verify your account type and understand the risks before trading.
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I remember the first time I considered using Trading 212. Like many traders, I wanted a platform that was easy to use but, more importantly, one that kept my money safe. I’ve heard horror stories of brokers collapsing overnight, leaving investors stranded, and I wasn’t about to put my money anywhere without understanding exactly what protections were in place.
One of the biggest concerns I had was whether Trading 212 was covered by the Financial Services Compensation Scheme (FSCS)—a critical safety net for UK traders. If you are wondering the same, I have done the research for you. Let me walk you through what I found.
How Does Investor Protection Work? FSCS vs. Other Schemes
What is the Financial Services Compensation Scheme (FSCS)?
When I first started investing, one of the biggest concerns on my mind was what happens if my broker goes bust? The idea of losing my hard-earned money because a financial firm collapsed was terrifying. That’s when I learnt about the Financial Services Compensation Scheme (FSCS)—a government-backed safety net designed to protect investors, savers, and policyholders in the UK.
Simply put, the FSCS steps in when a regulated financial firm fails and can’t return clients’ money, whether it’s a bank, broker, or investment provider. In those cases, I (and anyone else in the UK) could claim up to £85,000 in compensation per institution. That was a game-changer for me. It meant that even if the worst happened, I wouldn’t lose everything.
That is why, from day one, I made it a rule to only use FSCS-covered brokers and financial institutions. It gave me peace of mind knowing that my funds were protected, even in a worst-case scenario. Over the years, I’ve seen people overlook this protection—only to find themselves in serious trouble when their broker folded and they had no safety net.
For anyone investing, saving, or even holding cash in a bank account, FSCS protection isn’t just a nice-to-have addition —it is essential. It’s one of the key things that separates safe, legitimate financial firms from risky, unregulated ones. If you’re serious about protecting your money, checking for FSCS coverage should be one of the first things you do before trusting any financial institution with your funds.
How Does FSCS Compare to Other Investor Protection Schemes?
I have had a look into the various investor protection schemes operating worldwide, and FSCS stands out in terms of reliability. However, it is always good to know what else is out there. So, here is a breakdown of the major financial regulatory bodies looking after your funds.
Financial Regulatory Bodies (2025)
| Protection Scheme | Region | Compensation Limit | Coverage Scope | Covered Financial Products | Regulatory Authority |
|---|---|---|---|---|---|
| FSCS (UK) | UK | £85,000 | Cash & securities if firm fails | Stocks, bonds, savings, investments | Financial Conduct Authority (FCA) |
| ICF (Cyprus) | EU | €20,000 | Investment firm failure only | Stocks, forex, derivatives | Cyprus Securities and Exchange Commission (CySEC) |
| SIPC (US) | USA | $500,000 ($250,000 cash) | Broker failure, not market losses | Stocks, bonds, mutual funds | Securities Investor Protection Corporation (SIPC) |
| CDIC (Canada) | Canada | CAD 100,000 | Deposits if bank fails | Savings, term deposits, GICs | Canada Deposit Insurance Corporation (CDIC) |
| NCSC (Australia) | Australia | AUD 250,000 | Deposits if bank fails | Bank deposits, savings | Australian Prudential Regulation Authority (APRA) |
| FGDR (France) | France | €70,000 | Deposits if bank fails | Bank deposits, savings | Fonds de Garantie des Dépôts et de Résolution (FGDR) |
Is Trading 212 FSCS Protected?
Which Trading 212 Accounts Are Covered?
When I first started using Trading 212, I wanted to be sure that my investments were protected. Here’s what I found:
- FSCS covers Trading 212 Invest and ISA accounts.
- CFD accounts are NOT covered.
Here is a visual breakdown I put together to make the key differences easier to understand:
| Account Type | Trading 212 Entity | Regulator | FSCS Protection | Compensation Limit | Investment Type |
|---|---|---|---|---|---|
| Trading 212 Invest | Trading 212 UK Ltd | FCA (UK) | Yes | £85,000 | Stocks & ETFs |
| Trading 212 ISA | Trading 212 UK Ltd | FCA (UK) | Yes | £85,000 | Stocks & ETFs (Tax-efficient) |
| Trading 212 CFD | Trading 212 UK Ltd | FCA (UK) | No (CFDs not covered) | N/A | Contracts for Difference (CFDs) |
| Trading 212 EU | Trading 212 Markets Ltd | CySEC (EU) | No (Covered under ICF Cyprus) | €20,000 | Stocks, ETFs, CFDs |
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How Does FSCS Protection Work if Trading 212 Fails?
One of the biggest worries I noticed that fellow investors had was: What if Trading 212 goes bankrupt? What happens to my money?
After digging through the details and information available on their site/ Terms and Conditions, I found that if Trading 212 UK Ltd collapses, FSCS would step in and cover up to £85,000 per person. However, this protection only applies if Trading 212 has mismanaged funds or assets. It does not cover losses due to poor trading decisions or market downturns.
Are Client Funds and Assets Safe with Trading 212?
How Does Trading 212 Store Client Funds?
One thing I always check before using a broker is where they hold client funds. Trading 212 follows strict FCA regulations, which means my money is kept in segregated accounts at trusted banks. This ensures that if Trading 212 were to fail, my money would not be used to pay off its debts.
Additional Security Measures
Beyond FSCS protection, Trading 212 has additional safeguards that made me feel more comfortable using their platform:
- Segregated accounts ensure that client funds remain separate from company funds.
- Encryption & two-factor authentication keep accounts secure.
- Regulatory oversight from the FCA ensures compliance.
While no platform is entirely risk-free, these measures gave me peace of mind.
How do I check if FSCS protects my Trading 212 account?
Step-by-Step Guide to Verifying FSCS Eligibility
If you are a trader like me, you don’t want to assume that your funds are protected—you want proof. So here is how I checked that my Trading 212 account was covered:
- Check your account type – If you are using an Invest or ISA account, you are covered.
- Look for Trading 212 UK Ltd’s FSCS registration – This should be listed on their website.
- Visit the FSCS website – You can cross-check to confirm FSCS protection.
What to Do If You’re Not Covered?
If you’re trading CFDs on Trading 212 (or using an account under their EU entity), FSCS won’t cover you. In that case, I recommend:
- Reducing exposure to high-risk assets like CFDs.
- Diversifying investments across multiple regulated brokers.
- Exploring alternative protections like the Investor Compensation Fund (ICF) in the EU.
What does FSCS not cover on Trading 212?
One common misconception is that FSCS will cover bad trades—it will not. If I make a poor investment decision and lose money, FSCS will not reimburse me. It only steps in if the broker itself collapses.
Will FSCS Protect My CFD Accounts?
No, they are not covered by FSCS. CFDs are considered high-risk products, and traders must accept potential losses. If you are trading CFDs, you’re on your own in terms of protection.
Final Thoughts
Key Takeaways
- FSCS covers Trading 212 Invest & ISA accounts up to £85,000.
- CFD accounts are not protected, meaning you bear the entire risk.
- FSCS protection is a safety net, not an investment strategy.
Next Steps for Investors
Here’s what I suggest:
- Verify your account type to confirm FSCS eligibility.
- Use multiple brokers to spread risk.
- Stay informed about financial regulations and investor protections.
FSCS protection was a big factor in my decision to use Trading 212. While it’s a great safety net, I always remind myself that it’s not a substitute for smart investing. Being aware of what is covered—and what is not—helps me trade with confidence.
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FAQs
Yes, but only Invest and ISA accounts are covered by FSCS, providing protection up to £85,000 per person. CFD accounts are not covered.
If Trading 212 UK Ltd fails, FSCS may compensate eligible clients up to £85,000, but only for protected accounts. This does not cover market losses, only broker insolvency.
No, FSCS does not protect against investment losses. It only applies if the broker mismanages funds or collapses.
You can verify your account type in your Trading 212 dashboard. Invest and ISA accounts under Trading 212 UK Ltd are FSCS-protected.
Yes, Trading 212 keeps client funds in segregated accounts with trusted banks, and it is regulated by the FCA. However, always assess risks before investing.
References
Official Regulatory & Protection Scheme Websites
- Financial Services Compensation Scheme (FSCS) – Financial Services Compensation Scheme | FSCS
- Financial Conduct Authority (FCA) – Consumers | FCA –
- Investor Compensation Fund (ICF) Cyprus – Investor Compensation Fund (I.C.F)
- Bank of England – Bank & savings protection checker | Check your money is …
- Which? – FSCS Compensation Explained – FSCS: are my savings safe? – Which.co.uk
- Trading 212 Official Website – www.trading212.com – Details on Trading 212’s commission-free model, ISAs, and account types.
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When investing, your capital is at risk and you may get back less than invested. Past performance doesn’t guarantee future results.
