Does clients' fund Segregation provide any form of fund security?
Until now, there have been no reply to this thread. This means traders here do not have any idea about fund segregation? Do y9ou care whether the regulated brokers are really keeping funds separately?
of course you feel safer with a regulated broker which segregates our funds from the company's bank account and places it on a separate bank account.In this way,we'll be sure and feel safe that our money/funds cannot be used for business operations or any other purposes.
Yes. It does provide fund security. It is safe if you are dealing with a registered and regulated Forex brokers and funds are held in accounts that are separated from the company operating funds. In this way, the broker can't use the fund in any other business purposes.
Yes it provides fund security.Feel safe that we are dealing with a registered firm which ensure that clients money are segregated.
Yes. It does provide fund security. It is safe if you are dealing with a registered and regulated Forex brokers and funds are held in accounts that are separated from the company operating funds. In this way, the broker can't use the fund in any other business purposes.
But as it is, there is no way to know if our funds are really segregated and if they are not using it for business. What if the broker goes bankrupt, will they not use our money to sort things out? Ofcourse they will, I think account segregation is just a farce.
But as it is, there is no way to know if our funds are really segregated and if they are not using it for business. What if the broker goes bankrupt, will they not use our money to sort things out? Ofcourse they will, I think account segregation is just a farce.
If a broker gone bankrupt, they can apply for Chapter 11 Protection. Its under the law.
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This is another thing that has not been properly addressed. Many clients do not understand what is meant by account client fund segregation.
Segregated accounts may or mayn't be safe but if they truly are offered & thereby broker isn't able to utilize clients' un-utilized funds then he'd be losing out on the profit he could have made off it, on the other hand, if he was able to make money off those funds then he could be able to offer lower spreads or improve support-staff, management, etc as a way of ploughing back of increased profits.
So such considerations must be made when opting for segregated-accounts, not to mention, looking at how good trustees are, etc
Bottomline being that "interested-parties" aka customers/traders should keep a close eye on broker's financial health (forget the "regulators" or "regulation") because there would be no need for segregation if the broker is financially healthy while if he isn't financially healthy then why even put money there even if it was supposedly segregated?
What do you think?