How your money
is protected
Where your funds are held, what negative balance protection covers and what it doesn't, when positions are closed automatically, how your data is secured, and what would happen if a Kudo entity failed. No overstated promises.
Kudo Trade (Mauritius) Ltd
The entity that holds your account and funds
FSC GB24203599
- Client funds
- Segregated
- Negative balance
- Reset to zero
- Margin call
- 100%
- Stop-out
- 50%
These protections are provided by Kudo Trade (Mauritius) Ltd
Every Kudo trading account is opened with this entity, including if you were introduced by Kudo Financial Services LLC in the UAE. The UAE entity never holds client money. You can check your entity in the client portal under Account → User Settings → Profile, or in your welcome email.
Segregated Accounts
Your money is kept apart from ours
Client deposits are held in dedicated client money accounts with tier-1 international banks, separate from the accounts Kudo uses to run the business.
Tier-1 international banks
Client money accounts are held with large, internationally regulated banks, never with Kudo itself.
Ring-fenced by design
Client money is not used for operating costs, hedging or company investments.
Reconciled regularly
Client balances are reconciled against the client money accounts on a regular schedule.
Supervised by the FSC
Client money handling is part of what the FSC Mauritius supervises and can audit.
Client money accounts
Your fundsHeld for clients
Your deposits, your profits, your balance.
- Tier-1 international banks
- Separate from company money
- Not used to run the business
Company accounts
Kudo's own money
Salaries, suppliers, marketing, capital.
- Operating costs
- Regulatory capital
- Company investments
Funds in transit: some deposits and withdrawals are processed by a group payment agent acting on behalf of Kudo Trade (Mauritius) Ltd before they reach, or after they leave, the client money accounts.
Negative Balance Protection
You can't lose more than your account balance
If a sudden market gap pushes your account below zero before your positions can be closed, we reset the balance to zero automatically. You won't be asked to pay back the difference.
Before the gap
$1,000
Account balance
After the gap
-$250
Market gaps past stop-out
After protection
$0
Reset automatically
Illustrative example. Your loss is limited to the funds in the affected account.
What it covers
Every Kudo trading account
Standard and Pro accounts, for all clients of Kudo Trade (Mauritius) Ltd.
Applied to each account
A negative balance on one account is not recovered from your other accounts.
Automatic
The balance is reset to zero without you having to ask.
Losses from market gaps and slippage
Including weekend gaps and fast markets around major news.
When it doesn't apply
Abusive trading
Arbitrage, latency trading or exploiting pricing errors.
Market manipulation
Any attempt to manipulate prices or our systems.
Exploiting the protection itself
For example, opposite positions across accounts designed to profit from a reset.
Breach of our Terms & Conditions
Where the negative balance results from activity our terms prohibit.
Margin Call & Stop-Out
Warnings first, then automatic protection
Your margin level is your equity as a percentage of the margin your open positions use. When it falls, we warn you, and if it keeps falling, we start closing positions to stop losses growing.
| Level | Standard | Pro |
|---|---|---|
| Margin call | 100% | 100% |
| Stop-out | 50% | 50% |
At 100% you're notified and can't open new positions until you add funds or reduce exposure. At 50% we start closing open positions, beginning with the least profitable, until your margin level is back above 50%. In fast markets, positions can close below 50%; that's where negative balance protection applies.
Margin level
150%
- Equity
- $1,500
- Used margin
- $1,000
- Free margin
- $500
You have room to trade. New positions can be opened.
Illustrative: this example assumes $1,000 of used margin.
Data Security
Your account and data, locked down
Protecting your money also means protecting the account it sits in and the personal data you share with us.
Encrypted connections
The website, client portal and trading platforms all use encrypted (TLS) connections.
Two-factor authentication
Add a second step to your client portal login so a password alone can't open your account.
Specialist identity checks
Identity verification runs through a specialist provider with liveness checks and ongoing screening.
Card data never stored
Card payments are handled by PCI DSS-compliant processors. We never store your full card number.
Secure cloud hosting
Systems run on enterprise cloud infrastructure with restricted, logged staff access.
Withdrawals to you only
Funds are only returned to payment methods in your own name, protecting against account takeover.
Insolvency
If a Kudo entity failed
It's unlikely, but you should know exactly what would happen, entity by entity, and what is not in place.
Kudo Trade (Mauritius) Ltd
FSC GB24203599 · Holds your account and funds
Applies to every Kudo client
- 1
An insolvency practitioner is appointed
Under Mauritian law, an independent administrator or liquidator takes control of the company.
- 2
Client money is identified separately
Because client funds are held in segregated client money accounts, they are treated as held for clients, not as company assets available to the company's creditors.
- 3
Open positions are closed
Your positions are closed and your account balance is calculated at that point.
- 4
Client money is returned
Funds in the client money accounts are distributed to clients in line with their balances. If there were a shortfall in those accounts, clients would share the loss proportionately.
Kudo Financial Services LLC
CMA Category 5 · Introduces clients in the UAE
If you were introduced in the UAE
This entity promotes Kudo and introduces clients. It never holds client money and does not hold your trading account.
If it became insolvent, your account and funds would be unaffected. They remain with Kudo Trade (Mauritius) Ltd, and you could continue trading and withdrawing as normal.
Your funds are not held by this entity, so its insolvency would not put them at risk.
What is not in place
No investor compensation scheme
There is no government-backed scheme that would top up client money if there were a shortfall.
No client-fund insurance
Client balances are not insured. Segregation is the protection for your funds.
Professional indemnity insurance only
This covers claims against Kudo for professional errors. It is not a guarantee of client balances.
Questions about your funds?
Our support team can tell you which entity holds your account and answer any question about how your money is protected.