Segregated Client Funds

Segregated client funds are trader deposits held in bank accounts entirely separate from a broker's own operating capital, so client money can't be used to cover the broker's business expenses or debts. Reputable regulators like the FCA and CySEC require this segregation as a core condition of a broker's license. Segregation is meant to protect client funds if the broker becomes insolvent, though it doesn't protect against trading losses — it protects the money itself from being treated as company assets in a bankruptcy. What to check: segregation is a property of the entity holding your money, not of the brand, so find the contracting company in the client agreement and read that regulator’s own client-money rules. Two separate questions follow. Is the money segregated? And is there a compensation scheme — the FSCS, the Cyprus ICF, or none — that pays out if the firm fails and the segregated pool falls short? The two are usually spoken of together and are not the same protection.