Forex Brokers with Segregated Accounts, are fx brokers that hold clients money separately from their operating capital. When a forex broker declares that clients funds are held in segregated accounts across various financial institutions, it means there is a dedicated account where client funds are kept separate from the broker’s operating capital. In other words, a broker is not allowed to use the money that clients deposit in order to trade.
The broker only has access to those funds in the case that the client loses his trading capital when trading through the brokers platform. The separate accounts are usually joint ones and include the funds of all clients. There is also the option for professional or traders with large capital to create an individual segregated account that includes the funds of that sole client.
Maintaining segregated accounts is a regulatory requirement from all major regulators like CySec and FCA. Regulators do not provide an approve license to forex brokers that fail to comply with this requirement. Keeping client funds separately from the brokers operating capital, also means that a trader is protected in the case that a broker becomes insolvent or declares bankruptcy. A trader may get his money back, depending on whether there are other creditors in line whose funds are secured, or on the rulings made in the insolvency process.
Here is a list of Forex Brokers with Segregated Accounts
MAS, JFSA, DIFC