Mitrade Strengthens Trader Safety through Million-Dollar Coverage

Mitrade Strengthens Trader Safety by offering a Lloyd’s-backed insurance policy with AUD 1 million coverage for insolvency. Australian CFD trading platform Mitrade has introduced an Excess of Loss Insurance Policy underwritten by Lloyd’s of London, enhancing its security measures for retail traders. This initiative adds another layer of protection alongside regulation-mandated safeguards, placing Mitrade among the few brokers offering additional capital security to their clients.

Mitrade Strengthens Trader Safety with Lloyd’s-Backed Insurance

The newly implemented insurance policy provides coverage of up to AUD 1,000,000 for qualifying claims in the event of company insolvency. This benefit, offered at no extra cost to platform users, complements the mandatory protections required by Australian regulatory standards.
“Australia’s CFD trading market is built on a strong regulatory framework, continually evolving under ASIC’s oversight,” said Elven Jong, CEO of Mitrade Australia. “While these standards offer substantial trader protections, our Excess of Loss Insurance provides an additional safeguard beyond compliance.”

Moreover, the initiative aligns with rising retail trading activity in Australia’s forex and cryptocurrency sectors. Improved platform accessibility and expanding financial education have driven increased participation among retail investors.

“We understand traders seek enhanced fund security and comprehensive education and resources to navigate market complexities. Our commitment reflects the broader industry shift towards proactive trader support, resilience, and risk mitigation.”

Mitrade operates under ASIC regulation, ensuring standard security measures such as segregated client funds and professional indemnity insurance. Additionally, the company secured a license from the Cyprus Securities and Exchange Commission (CySEC) last year, enabling its expansion into the European Union market.

New Insurance Initiative

In recent months, several brokers have introduced similar insurance offerings. In August 2024, ATFX and Hantec Markets launched initiatives providing coverage for client funds, offering protections of up to $1,000,000 and $500,000 per claimant, respectively.

EC Markets also implemented a policy covering client funds up to $1,000,000 per claimant. “Typically, investor protection funds cover a limited amount. EC Markets’ insurance, by contrast, extends this coverage up to $1 million per Claimant, providing a substantial safety buffer,” said Nick Xydas, Group Marketing Director of EC Markets.

In October, VT Markets joined this trend, unveiling a policy with identical coverage limits.

CFD Trading Market

VT Markets revealed details about the functioning and costs of these insurance policies.
“The value of such coverage lies in its ability to address catastrophic events that might exceed standard fund limits,” said VT Markets.

However, annual costs for such policies are approximately $30,000. Lloyd’s of London, the primary provider for these services, confirmed its collaboration with around 40 retail trading companies.
“Each policy is tailored specifically to the broker’s unique risk profile, client demographics, and operational needs,” commented Lloyd’s. “Customization ensures that the coverage meets the precise requirements of each firm.”

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