Do you get your money back if your forex broker becomes insolvent ?

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Radu Bot
2012
Radu Bot  
"Under current ASIC regulations there is no investor compensation fund in case of company insolvency.
Please note however that all client funds are held in segregated trust accounts with tier one Australian banks,
away from the company’s own funds. Clients with a net credit balance at the time of insolvency can be paid both 
from funds that are held in the segregated trust accounts and also from the company’s other available funds. 
Fortunately Broker corporate account balance is substantial and in the very unlikely event of insolvency 
those funds would cover clients, we well exceed the capital requirements set by our regulators. You can also
refer to section 4.20 of our Product Disclosure Statement ‘Payments to you in Broker Insolvency’ 

for more information."

I don't know if i'm allowed to mention my broker's name. Please comment your opinion on this subject.

Marco vd Heijden
Moderator
8183
Marco vd Heijden  

Of course not.

Radu Bot
2012
Radu Bot  
Marco vd Heijden:

Of course not.

So it dose't matter if you invest 1000$, you make 10 mil $ .....and one day all gone.

Marco vd Heijden
Moderator
8183
Marco vd Heijden  
insolvency
ɪnˈsɒlv(ə)nsi/
noun
  1. the state of being insolvent.
    "the club was facing insolvency"
    synonyms:bankruptcy, liquidation, failure, collapse, ruin, financial ruin, ruination; More
whroeder1
17939
whroeder1  
Radu Bot: So it dose't matter if you invest 1000$, you make 10 mil $ .....and one day all gone.

Ever hear of "don't put all your eggs in one basket?" In that case you should have moved $9 million to safe investments and increased your risk from 1% to 10%

Carl Schreiber
Moderator
7142
Carl Schreiber  

It depends!

Some brokers under the regulation of some authorities are forced to participate in some fonds to ... (same with banks in some countries up to a max. amount of money)

Ask your broker! Look for the regulation!

Radu Bot
2012
Radu Bot  
Carl Schreiber:

It depends!

Some brokers under the regulation of some authorities are forced to participate in some fonds to ... (same with banks in some countries up to a max. amount of money)

Ask your broker! Look for the regulation!

My comment in "." is the broker's response,so he basically said the contract says he has no obligation to pay me back but he will do everything possible.

Radu Bot
2012
Radu Bot  
whroeder1:

Ever hear of "don't put all your eggs in one basket?" In that case you should have moved $9 million to safe investments and increased your risk from 1% to 10%

I see your point, i'm not stupid, but I don't have many eggs right now. But it's not right to lose all the money, maybe half should be insured...

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