Security of investment when purchasing stocks using online apps

[rollingstone]

Hi all, seeking your guidance on this topic.
As the use of online brokers/apps appears to be growing, such as etoro, Trading 212, deGiro, BUX etc, my question is how safe is the value of your investment in shares bought using this platform in the event of any of the regulated brokers going bust (not talking at all about the market risk of share price fluctuations).
I am aware that there is an Investor Compensation Scheme in Ireland, whereby eligible clients can claim compensation up to €20,000 if a firm goes bust and can't return client assets. But does 'client assets' mean the value of the shares, or just cash held on deposit with the broker (or the total of both)? For example, if I had €50,000 purchased across a basket of shares in the likes of Apple, Microsoft, Ryanair etc - is the most I could expect to recover a max of €20K?
Thanks in advance for your responses.

 

[Gushering]

Client assets usually means cash and shares. But a lot of these apps are not regulated in Ireland and so would be governed by the investor protection scheme in their home country. The T&Cs for each app would clarify this and the level of protection offered.

 

[balders93]

The baseline would be 20k guaranteed at 90%. Other countries would have more.

This article is pretty comprehensive on why some platforms are safer than others and led to me choosing IBKR for investments, but I do still keep some cash in T212 under the 20k guarantee limit for their interest on uninvested cash.

With Leverage At All-Time Highs, Which Brokers Are Most Exposed To Failure?

The collapse of a broker is a stark reality that has left many investors stranded.Today the stakes are higher because according to FINRA, leverage in Q3 2025 has hit an all time high.

www.bankeronwheels.com

 

[rollingstone]

Thanks both for the info.