What investor-protection schemes cover forex brokers in the EU and UK?

In the UK, many regulated forex brokers fall under the Financial Services Compensation Scheme, which can reimburse eligible retail clients up to a set limit if the firm fails and cannot return money owed. In the EU, protection varies by country but some states operate similar investor‑compensation schemes, typically covering a portion of client funds up to a statutory cap. These schemes normally apply only when a regulated firm becomes insolvent or is unable to meet its obligations, not to losses from trading decisions or market movements. Eligibility may differ depending on client classification and where the broker’s legal entity is based. Traders should check which scheme, if any, the specific entity they are onboarded with participates in and what the coverage limits are.