Mitrade EU introduces excess insurance for its clients
Mitrade EU Limited, the Cyprus-based CFD broker regulated by CySEC, has introduced an additional insolvency protection in the form of an excedentary insurance policy. This voluntary measure complements existing regulatory safeguards such as segregated client funds and contributions to investor compensation schemes mandated under CySEC rules. The new coverage is automatically available for eligible clients at no cost or registration requirement. In case Mitrade EU becomes insolvent, the Lloyd's of London-backed policy could cover claims up to a total maximum amount of 1 million euros across all claims combined—though it does not protect against trading losses due to market movements. The CEO of Mitrade EU, Timur Konsky, emphasized that while regulations set minimum standards, the company aims to exceed them by identifying and mitigating risks for its clients. The insurance coverage became effective on September 1, 2026. As a regulated entity in multiple jurisdictions including Australia (ASIC), Cayman Islands (CIMA), South Africa (FSCA), Gibraltar (FSC), and Saudi Arabia (CMA), Mitrade operates across the EWR with over seven million traders globally. CFD trading carries significant risk due to leverage, as noted by a warning that 80% of retail investors lose money when using this provider. The insurance is not intended to cover market-related losses but serves as an additional layer of financial protection in case of insolvency.
Topics: brokerage customer_protection CySEC insurance