Q&A Financiero

What is segregation of client funds and why is it important?

Luke P_ Evans#52

2 semanas antes

Segregation means brokers keep client deposits separate from their own operating funds. Under FCA, ASIC, and CySEC rules, segregated accounts protect clients if brokers go bankrupt—funds can be returned instead of absorbed as liabilities. Without segregation, clients risk losing deposits if brokers mismanage money. Institutions demand segregation from prime brokers and custodians as standard. Retail traders should verify segregation in broker disclosures, regulator registers, or audit reports. Benefits: trust and security. Risks: offshore brokers often claim but don’t enforce segregation, leaving clients exposed. Segregation is the most fundamental protection—if absent, it’s a red flag that no “good trading conditions” can compensate for.