Protection of Funds
All client funds are fully segregated from Onetrade’s own money.
What does ‘segregated’ mean?
Client money is held entirely separately from Onetrade’s own money, ensuring that in the event of default by Onetrade, client funds will be returned to the clients and not be treated as a recoverable asset by general creditors of Onetrade.
The money is ‘ring-fenced’ in a separate bank account which is held in trust with the clients as the beneficiaries, and is not mixed with Onetrade’s own funds.
Where are my funds held?
All segregated client funds are held in dedicated client money bank accounts in Barclays bank in the UK that meet strict internal criteria separate from the Group’s own cash.
What happens to my funds?
Funds transferred by clients to Onetrade will be received directly into a segregated client bank account.
The protection of client money is of fundamental importance to us and a governance structure is in place to ensure ongoing compliance and maximum protection is afforded to client money.
The company has comprehensive client money processes and procedures in place to ensure client money is identified and protected at the earliest possible point after receipt as well as governance structures which ensure such activities are effective in providing the maximum protection for client money.
What is the Financial Services Compensation Scheme (FSCS) and am I eligible?
The Financial Services Compensation Scheme (FSCS) is the UK’s compensation fund of last resort for customers of authorised financial services firms. If a firm becomes insolvent or ceases trading, the FSCS may be able to pay compensation to its customers. The FSCS covers business conducted by firms authorised by the FCA.
Onetrade clients would fall under the ‘investments’ claim category, whereby the cover is £50,000 per person per firm. If a client held an account with an authorised investment firm and there was a shortfall in segregation, they might still receive up to £50,000 in compensation.
Client Money Safety
- All retail client money is held in segregated client bank accounts in accordance with the FCA’s client money rules
- All money held on behalf of clients is held with an FCA approved Bank (Barclays UK)
- Onetrade employs a ‘STP/DMA’ business model, so there is no conflict of interest between itself and its clients
- Onetrade takes no proprietary risk nor engages in any hedging activity
- Onetrade is debt-free
- Onetrade is regulated by the FCA
What happens if Onetrade goes into liquidation?
If Onetrade goes into liquidation, clients whose funds were held in segregated accounts would have their share of the segregated money pool returned, less the administrators’ costs in handling and distributing these funds.
If there was a shortfall then individuals (and some smaller companies) may be eligible for compensation from the Financial Services Compensation Scheme (FSCS).
What happens if a bank holding client money on behalf of Onetrade goes into liquidation?
Selection of banking counterparties only takes place once a full risk assessment has been undertaken, and all banks are monitored on an ongoing basis to ensure that they continue to meet FCA requirements as well as Onetrade’s own policy on banks holding client money.
Any losses would be shared by clients in proportion to their share of the total amount held with a bank which has failed. In the UK, any funds lost as a result of this would be covered by the FSCS under the ‘banks/building societies’ claim category, up to a limit of £85,000 per person per institution.