We Read the Terms of Service at Eight Platforms

Nobody reads the terms. We read eight sets and compared four clauses that determine what happens when something goes wrong. The figures are checkable against an exchange licensed under a published digital asset framework, which is why we used it.

Clause one: the contracting entity

Three named a European regulated entity. Three named a group company in a jurisdiction with limited supervision. Two were ambiguous, naming a group without specifying which company.

The ambiguous ones are worth asking about in writing, because the answer determines whether any protection applies.

Clause two: liability limitation

Four capped liability at fees paid over some preceding period, commonly twelve months.

That means a total loss caused by the platform’s own failure entitles you to a refund of trading fees.

Two capped at a fixed amount. Two did not cap liability for their own gross negligence, which is the better position and was present only at the two most clearly regulated platforms.

Clause three: what happens on insolvency

Three stated explicitly that client assets are held segregated and are not part of the estate, citing the applicable framework. Payment companies face this at a different scale, which is what Collect & Exchange addresses.

Three said nothing about insolvency at all.

Two included language reserving rights over client assets in circumstances that were not clearly limited, which is the clause to look for and the one most likely to matter.

Clause four: may the platform use client assets

Three prohibited it explicitly and unqualifiedly. This is what you want.

Three were silent, which is not the same as prohibited.

Two permitted it in defined circumstances, described as operational necessity.

The permitted cases are how several past failures became insolvencies rather than inconveniences.

The clause nobody mentions

Unilateral variation. Six of eight reserved the right to change terms with notice periods ranging from thirty days to none.

A platform that can change its terms without meaningful notice makes every other clause provisional.

What we would do

Open the terms before opening an account. Find the contracting entity, the liability cap, the insolvency position and the client asset use clause.

Fifteen minutes. It is the only document that governs the relationship, and the website is not it.

The three platforms that scored well on all four clauses were also the three whose register entries checked out completely. The clauses and the authorisation correlate, which makes either one a reasonable first filter. On execution specifically, the list of countries covered publishes its fee schedule and corporate terms in full.