HomeForex Account TypesBest Forex Brokers With Segregated Accounts In 2021

Best Forex Brokers With Segregated Accounts In 2021

Segregated Forex accounts – a protective measure to keep clients’ funds safe and separated from the broker’s own capital. But does this guarantee full protection? The answer is: it depends on the country and its laws. Traders as investors have the right to receive compensation in case of company liquidation/bankruptcy, but the amount of compensation (same as with bank deposits) will depend on the financial rules and regulations specific for each country.

Therefore, it’s not enough to say that a broker offers segregated accounts because what matters, in the end, is how much you’ll be able to recover should things go wrong.

Forex Brokers That Offer Segregated Accounts:

1
Min. Deposit
$50
Exclusive promotion
User Score
10
Leverage
30:1
New accounts
Spreads
1
PIPs
Regulations
CySEC, FCA
Forex Pairs
No Fee
Start Trading
Pros:
Join the Social Trading revolution. Connect with other traders, discuss trading strategies, and use our patented CopyTrader
eToro is the world’s leading social trading platform, offering a wide array of tools to invest in the capital markets
Largest number of currency pairs to trade
Payment Methods
Bank Transfer, Wire Transfer
Full regulations list:
CySEC, FCA
Cryptoassets are highly volatile unregulated investment products. No EU investor protection. eToro USA LLC does not offer CFDs and makes no representation and assumes no liability as to the accuracy or completeness of the content of this publication, which has been prepared by our partner utilizing publicly available non-entity specific information about eToro. Your capital is at risk.
2
Min. Deposit
$10
Exclusive promotion
User Score
9.3
Leverage
500:1
New accounts
Spreads
0.7
PIPs
Regulations
Forex Pairs
55+
No Fee
Start Trading
Pros:
Can fund with BTC
64 global companies including Netflix and Amazon
Free deposits and withdrawals
Payment Methods
Bitcoin, Credit Card, Debit Card, Wire Transfer
Full regulations list:
EagleFX offers leveraged trading on a range of assets within its platform. CFD and Spot Forex trading do carry a degree of risk which may result in you losing more than your initial investment. Please ensure you fully understand the risks involved with leveraged trading and ensure this is not detrimental to your personal or institution's financial well being.
3
Min. Deposit
$10
Exclusive promotion
User Score
8.7
Leverage
500:1
New accounts
Spreads
0.8
PIPs
Regulations
Forex Pairs
55+
No Fee
Start Trading
Pros:
55+ currency pairs available
Trade on a trusted platform
24/7 support via live chats, email or phone call
Payment Methods
Bitcoin, Credit Card, Debit Card, Visa
Full regulations list:
LonghornFX offers high-leverage trading on a wide variety of assets. Trading with leverage carries a degree of risk which may result in losing more than your investments. Clients should practise risk management to protect themselves from losing more than they can afford when trading with leverage.
4
Min. Deposit
$200
Exclusive promotion
User Score
8.5
Leverage
500:1
New accounts
Spreads
0.5
PIPs
Regulations
FMA New Zealand, FSPR
Forex Pairs
27+
No Fee
Start Trading
Pros:
BlackBull Markets’ unique feature lies in its stated goal of delivering an “institutional” trading experience to retail clients
No-Dealing Desk Broker (NDD), with Straight Through Processing (STP) all done on a true ECN
State of the art Equinix servers, based in New York (NY4), London (LD5) and Tokyo (TY3)
Payment Methods
Bank Transfer, FasaPay, Mastercard, UnionPay, Visa, neteller, skrill
Full regulations list:
FMA New Zealand, FSPR

What Is a Segregated Account?

Segregated accounts – dedicated client accounts which allow keeping client funds separated (segregated) from the company funds.
Talking about the Forex industry, brokers can either opt for or be obliged (by their regulatory bodies) to open segregated accounts for their clients.

Currently, US law doesn’t allow holding Forex funds in segregated accounts. Oversees brokers, however, are able to offer this option.

Segregated accounts can either be opened in the name of each individual client or can be joint for all clients. Usually, in the retail Forex industry, it’s going to be the second case (one bank account for all clients, opened in the company name), unless negotiated individually for large investors.

The Purpose of Segregated Accounts in Forex

The main purpose of a Forex segregated account is to shield client investments from possible company risks by keeping such investments “unavailable” for the company to be used in the course of their business when facilitating their own risks, expenses and obligations. Should the company account become overdrawn, the company or its bank cannot use client funds.

While trading in the Forex market, Forex brokers with no account segregation are able to engage client funds as margin against their own positions which are being opened to hedge against client trades; at the same time, brokers who work based on a segregated account scheme must use own funds to do the same.
Should a non-segregated account broker face difficulties getting out of his hedged positions, clients funds will constantly remain under the risk. This is never the case when client funds are segregated.

Segregated Accounts – Broker Bankruptcy Case

In the event of bankruptcy, clients’ funds will be treated based on the laws and regulations set for countries in which brokers operate and hold accounts.

In the UK, clients’ funds remain protected, neither bank no company liquidators, no its main creditors are eligible to access and be compensated through those funds. Clients will be paid based on a compensation scheme approved according to existing regulatory requirements. It is the duty of each individual investor to inquire about existing compensation schemes available for his broker. As an example, review the compensation scheme for the FSA regulated brokers.

According to Swiss law, the liquidator mostly appointed by the federal banking commission will rank the client assets as a general unsecured creditor of the failed company. Again, this is only relevant when the company goes bankrupt or is put in liquidation.
Such a scheme is also practised in most banks worldwide. Be sure to learn about the level of protection of your funds.

Before opening an account with any Forex broker, go over Trading Terms & Conditions in the Client Agreement form. It always says about the level of protection of client funds and the financial liabilities of a broker in case of bankruptcy.

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