Like SIPC, it addresses firm failure rather than market loss. The limit applies per firm, so two accounts at the same authorised entity share one £85,000 cap, while two genuinely separate firms give two caps.
Check the authorised entity, not the brand. Several trading apps are appointed representatives or route business to an overseas group company, and the protection that applies may not be FSCS at all.
Example: £120,000 held with one failed UK investment firm returns £85,000, leaving £35,000 to pursue in the insolvency. Split across two separately authorised firms at £60,000 each, both balances are fully covered.
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