Brokers with Segregated Accounts
Protect your funds when good times go bad. Compare Forex brokers with segregated accounts.
Brokers we recommend
We rate brokers across 5 categories and 18 criteria, following a standardised methodology. Here are our overall and category-specific ratings:
* Availability is subject to local laws and regulations.
Note: for brevity, this table only shows the most popular payment methods and regulators. Open a free account with any of these brokers to view funding options available in your country.
- Flexible leverage up to 1:500.
- Trade over 1,000 financial instruments.
- Trade on MT4/5 or cTrader without restrictions.
- Copy trading service is available.
- Customer support is available 24/7.
- No TradingView integration is available for now.
- No investor compensation fund in the event of bankruptcy.
We've traded through this broker's MT5 Raw account and can vouch for its low spreads and reliable trading environment. Its Raw account is designed for day traders and scalpers, and its Standard account will suit all others.
We also like the breadth of instruments available through its platform. You'll find over 70 currency pairs, as well as gold and silver priced in US dollars, euros and Aussie dollars. You can also go long or short on stocks and government bonds through over 40 ETFs.
Its free educational content also sets it apart from the competition. Fund your account to get access to trading signals from Trading Signal and Autochartist. You'll also get access to free trading courses for beginners and experienced traders, weekly webinars and e-books.
- Enjoy flexible leverage up to 1:500.
- Choose between MetaTrader 4 and 5.
- All trading styles and Expert Advisors are allowed.
- Fast execution speeds from its London data-centre.
- Negative balance protection is only available across Forex and precious metals.
- 4XC is regulated in the Cook Islands, a country without an investor compensation fund.
From the outset, 4XC has offered high leverage (up to 1:500) across Forex, gold and silver. It accepts all trading styles on MT4/5 without restrictions. Alternatively, you may open a PAMM account or a copy trading account.
Its customer service agents, available 6 days a week, have always been friendly and professional. So it's perhaps no surprise that 4XC has received several awards commending the quality of its customer service team.
Overall, we would recommend 4XC to anyone looking for a trustworthy broker, especially if you are primarily interest in trading Forex or precious metals on high leverage.
- Over 750 financial instruments on MT4/5.
- Get free daily trading signals.
- Easily copy professional traders.
- No fees on deposits or withdrawals.
- Get one-on-one assistance when you deposit US$1,000.
- You cannot trade on raw spreads.
- Quarterly and annual inactivity fees.
The breadth of assets available to trade through its platform sets AvaTrade apart from the competition. You'll find over 750 instruments, including currencies, stocks, indices, ETFs (and leveraged ETFs), precious metals, commodities, cryptocurrencies, and government bonds.
AvaTrade supports the MT4 and MT5 platforms, available for Windows and iOS devices. Its web trading platform is sleek, with advanced charting tools. AvaTrade's spreads are competitive and fixed, which can provide a more predictable trading environment, well-suited for beginners.
Its customer service is excellent too. Every time a question has arisen, we've been able to speak to a customer support agent easily through a local telephone number. Our queries were resolved within minutes. AvaTrade support is available five days a week through various channels, including WhatsApp.
- 100% bonus on your 1st deposit (up to US$2,000).
- Flexible leverage up to 1:500.
- All MT4 Expert Advisors are allowed.
- No fees on deposits.
- No minimum deposit.
- FXCC only supports MetaTrader 4.
- Withdrawal fees apply across some, but not all, funding methods.
We particularly like FXCC's high leverage (up to 1:500) available across all currency pairs, gold, silver, stock indices and energy products. It offers negative balance protection, for added peace of mind.
Its MetaTrader 4 integration provides a smooth trading experience, with no lags and only minimal slippage. It accepts all trading styles and Expert Advisors, including scalping robots, without restrictions. We look forward to the day when FXCC will support MT5.
As FXCC offers consistently low spreads, it is possible to enter and exit trades several times a day, to take advantage of even small price swings. Its ECN XL account has no commission. However, FXCC will apply a $5 mark-up per lot, per side, if you open an account through us.
Trade CFDs on a wide range of markets on MetaTrader 4 and 5, with leverage up to 1:1,000 through LiteFinance.com. This broker accepts all EAs and trading styles, including scalping and news trading. Earn up to 2.5% interest on your balance.
- All trading strategies are allowed.
- Get free daily technical and fundamental analysis.
- Receive up to 2.5% interest on used funds.
- Copy trading accounts are also available.
- Withdrawals fees are somewhat high, especially card withdrawals.
We have been trading through LiteFinance's ECN account for over 3 years on raw spreads plus a commission of $5 per lot, per side, and we enjoy its unrestricted trading environment.
Their customer service team is responsive, even on weekends. Our withdrawals have always been processed as quickly as possible. However, their withdrawal fees are a bit high, especially card withdrawals.
LiteFinance publishes a lot of educational content in the form of webinars and articles on its blog, often focused on technical analysis. However, you might find yourself lost if you are new to trading.
Segregated accounts earmark the funds you deposit with your broker for your own trades. They're meant to avoid "co-mingling" and can protect your funds from unscrupulous brokers.
Why segregation matters
The primary purpose of segregation is to protect customer funds in the event of the broker's insolvency. In countries where account segregation is a legal obligation, provisions in bankruptcy laws give customers a priority over the funds in segregation. This protects customer funds against insolvency losses and competing claims from other creditors.
Segregation also serves a more immediate function. In the event of liquidation or any other situation where open positions need to be transferred quickly, segregation ensures that the customers' margin funds transfer along with the positions. Without this protection, you may be required to post duplicative margin or else face the forced liquidation of your positions.
A legal requirement
In some countries, it is a legal requirement that brokers place customer funds in segregated accounts. In others, brokers may follow similar requirements out of good business practice.
Brokers operating in the United Kingdom are regulated by the Financial Conduct Authority (FCA, formerly FSA). Under FCA rules, brokers have an obligation to protect their clients' money and assets. FCA regulated brokers must place all money paid and owed to customers into separate bank accounts and establish a trust over those accounts.
Brokers operating in the United States must register with the National Futures Association (NFA) or the Commodity Futures Trading Commission (CFTC). Section 4d(a)(2) of the Commodity Exchange Act requires that all funds deposited with a Futures Commission Merchant (FCM) in connection with futures or commodity options be accounted for separately, deposited under an account name that clearly identifies them as such, and not be commingled with the FCM's own funds.
How safe are segregated accounts?
MF Global's collapse, which left US$ 1.6 billion of client funds unaccounted for, is a reminder that segregated accounts cannot protect against fraud or criminal behaviour. According to a report by the bankruptcy trustee, MF Global often moved money between its own accounts and those of customers in amounts of less than US$ 50 million a day, replacing the cash by day's end.
When opening an account with a Forex broker, take time to read through the Customer Agreement and Terms and Conditions to understand the steps the broker will take to protect your funds. Segregated accounts aren't a silver bullet; however, they provide you with legal rights when good times turn bad.
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About the author
I'm Stéphane, a trader and an entrepreneur. My mission with TrustedBrokers is to help you find the right broker for you, whether you're a beginner or a pro. I've personally used and tested the brokers on our service, opening and funding real-money accounts, contacting customer service and placing trades. I started my career in investment banking in London.