{"id":729,"date":"2016-11-21T14:08:45","date_gmt":"2016-11-21T14:08:45","guid":{"rendered":"http:\/\/www.makemoneytradingreviews.com\/?page_id=729"},"modified":"2020-09-21T06:37:38","modified_gmt":"2020-09-21T06:37:38","slug":"segregated-accounts","status":"publish","type":"page","link":"https:\/\/www.makemoneytradingreviews.com\/segregated-accounts\/","title":{"rendered":"Forex Brokers with Segregated Accounts"},"content":{"rendered":"
Forex trading is a high-risk trade where you will exchange currencies and predict futures to a highly changing market. While you can understand and agree to the high risks with which you can both win and lose big, you will not want to further expose yourself to any unnecessary risks. We are all, naturally, concerned for the funds we are depositing and investing with any Forex broker and we want to assured of the safety at any time. We are thus looking at reliable brokers who offer traits which guarantee the trustworthiness, reliability and consistency.<\/p>\n
The segregated accounts that many reliable Forex brokers offer are actually separate accounts for the clients and the company funds. This practically means that the broker controls but cannot use the traders\u2019 money to further invest or cover any ongoing expenses. This means that the traders\u2019 funds are well-protected and that all traders have a sort of a guarantee on them. However, this is not a 100% protection as in the case of bankruptcy the clients would receive refunds according to the regulations under which the broker operates.<\/p>\n
The main reason for choosing the brokers offering segregated accounts for trader funds is safety. This will ultimately protect the traders\u2019 interest and the money they invested with the company, as the company will not have full access to the funds. In the past, there were many fraudulent Forex brokers who used the traders\u2019 funds to invest or use them for operational costs they had. Such companies used the clients to redress the company account balance and use their funds as the margins. This puts the clients under constant risk, no matter how good their trading is and how successful they are. While there are reliable and trusted Forex brokers who still don\u2019t offer segregated balances, this exposes the trader to further risks of potential misconduct and losses. On the other hand, having segregated accounts the company assures its clients their funds will be easily identified and returned in case of bankruptcy according to the rules of the appropriate regulatory body.<\/p>\n