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:
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.
Related education and FX know-how:
Trusted FX Brokers
Haven't found what you're looking for? Contact us!
Forex Education - Basics:
Free Forex eBooks:
Forex Education - FX Brokers:
Forex Education - Technical Analysis:
Forex Education - Money Management:
Other trading tools: