Segregated funds are client money held in bank accounts separate from the broker's own operating capital, so it cannot be used to fund the business and is identifiable if the firm fails.
Segregation is a licence condition in tier-one jurisdictions and a marketing phrase in some others. What makes it real is who audits it and where the account sits: client money in a top-tier bank, reconciled daily and reported to a regulator with enforcement history, is a different proposition from the same sentence on a website with no named bank and no audit.
Segregated Funds
Client money held apart from the broker's own capital. The protection depends on who audits it, not on the claim itself.
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