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Forex Brokers with Segregated Accounts
- Segregated account is usually a joint bank account in which all customers’ funds are held separate from the funds of a broker. (For large investors, segregated account can be opened individually.)
- In many countries brokers are required to maintain segregated accounts for clients.
- It’s a protective measure to ensure clients funds are not used by brokers for operational purposes.
- Segregated account (Clear seperation of the clients funds and the company funds) can help protect clients’ funds to some extent. The effectiveness can be limited, depending on the regulation of each country.
- In countries that do not have proper regulation, reputable brokers usually do not use clients’ money for their own use ,but they may still use the money under certain conditions. For example, if the broker goes bankrupt, clients’ funds may be used to pay off debt.
- What can we do?
- When registering a new trading account , read the Terms & Conditions in the Client Agreement form.It will usually mention the level of protection for clients’ funds.
