Every week we provide insights into popular assets and hot questions, so you can easily learn more about the investment market in bite-sized pieces.
This week, we take an in-depth look at the benefits of trading Contracts for Difference (CFDs) with a regulated broker, particularly focusing on the investor compensation scheme.
Who Regulates Your Investments
The CFDs on the Change App are provided by Change Securities B.V., an investment firm licensed by the Dutch Authority for the Financial Markets (AFM) for nearly 10 years. The AFM, along with the Dutch Bank (DNB), ensures that all necessary rules for transparent and fair trading are followed.
Understanding Investor Compensation
Investing in CFDs comes with inherent risks, as the value of these investments can fluctuate, potentially resulting in losses. However, investor compensation protects you in case something goes wrong at the company managing your investments. This scheme guarantees that you will recover your investments up to a maximum of EUR 20,000.
Guarantee Scheme for Investors
Investor compensation steps in if a company providing investment services faces severe issues like bankruptcy, fraud, or mismanagement. By law, these companies must segregate their own assets from their customers' invested assets. This segregation is designed to safeguard your investments, placing them in a separate fund. If the company fails to maintain this separation, resulting in financial losses, the investor compensation scheme ensures you are reimbursed for those losses, up to EUR 20,000.
Compensation Up to EUR 20,000
Should the company you invest in encounter major issues, the investor compensation scheme guarantees the return of your investments and funds up to EUR 20,000 per person.
Your Security with the Investor Compensation Scheme
Investments with Change Securities B.V. are covered by the investor compensation scheme, providing you with peace of mind. In case of any problems, your money is guaranteed up to EUR 20,000. Moreover, you don't need a high balance to benefit from the financial markets; you can start investing in CFDs with as little as EUR 10.
Until next week!
