Benefits of Forex Segregated Trading Accounts


If you are already trading Forex for some time, you should probably hear about Forex segregated trading accounts. But if this is your first time to encounter this term, this might be your lucky day. This article will be tackling about Forex segregated trading accounts and its outstanding benefits.

So, do not attempt to transfer on different pages because this information might be a great help for your trading career.

What is Forex Segregated Trading Account?

First, let us define what Forex segregated trading accounts are.

In the realm of the Forex market, segregated trading accounts are considered as a special type of trading account used by numerous Forex brokerage companies to keep their client's assets separated from their company funds.

For the fair brokerage companies, separating the funds of clients is essential for the reason that it serves a fundamental purpose which is to create a distraction between the two assets. Aside from that, this process is taking place to ensure that the money of both groups is not being used for wrongful purposes.

Benefits of Segregated Trading Accounts

Besides from that mentioned above, here are the other benefits provided by Forex segregated trading accounts:

  1. Segregating of trading accounts helps in maintaining security on the trader's funds. In general, traders are placing themselves in a risk when they are trading forex. These risks includes, loosing of their entire investments due to bad trading decisions. However, the fact is, that there are even more risks in case of dealing with cheating brokers who are not segregating trading accounts and deciding to not processing withdrawals of traders. But with Forex segregated trading accounts traders can be assured that their accounts are safe as the brokers in case of account segregation are being blocked from holding it.
  2. The money inside the Forex segregated trading accounts is safe and protected from business credits the broker made in the past. This instance often took place whenever a Forex brokerage firm close down due to financial difficulties. Although the brokerage shut down for good, the money invested will remain intact and unaffected.
  3. With segregated accounts, the money of the clients is easily and properly managed or organized. The brokerage firm won’t find it hard to tailor client’s portfolio and limit its exposure in case of certain situations or needs.
  4. By maintaining a Forex segregated trading accounts, it’s making a huge help when it comes to tax management. In general, an investment scheme has a primary goal of attaining high level profitability but its second goal is to achieve tax efficiency. With segregated accounts, the company can easily manage its capital losses and gain more effectively than before. As a result, they can easily determine their appropriate tax levels.


Due to the benefits the accounts segregation provides, regulation of segregated accounts is strictly followed when opening new forex account. According to law, regulators usually require every fully regulated and authorized Forex brokerage company to maintain a forex segregated trading accounts and all clients funds must be deposited into the segregated accounts.

This segregated account will be carefully monitored by Forex regulatory bodies as they control the brokerage firms. This is to prevent their client’s accounts from any harm or criminal activities that are taking place in the digital world.

If you are planning to engage in Forex trading for a longer length of time, you must ensure that your deposit is really located on a Forex segregated trading account, so, that you can assure that your money is in good hands.