Investor Protection

Investing with a foreign broker

If you open an FCA-approved UK-based brokerage account and invest in foreign companies, you will be covered on those investments. This is not necessarily the case if you invest with a foreign broker. 

Although it might seem a bit unusual to invest with a foreign broker, it’s increasingly common as people have started using apps on their phone to invest, rather than traditional stockbrokers. 

When investing with a foreign broker, it can sometimes be a reasonable choice. This is when they are regulated and recognized in your country too, as they will need to meet the same requirements. 

To overcome the issues that investors face in terms of protection, many brokers have opened branches all over the world. Many investors choose to invest with foreign brokers as they can often be cheaper.  

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