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Segregated Accounts
By Tim Shea | July 9, 2007
It’s not a nice thought, and I’ve talked to many traders before about it. FXCM could go bankrupt. Many companies before have, and many in the future will. If an FX firm in the USA goes bankrupt, you’re probably not seeing much of your money again. That’s the grim reality. So, it’s important to know how solvent your broker is. According to FXCM’s balance sheet, we’ve got about $120 million in capital, so we’re doing pretty darn well. I’m definitely not worried about my job here. So that’s good.
 But, I know for some people, especially those wanting to trade an account with balances in the hundreds of thousands or even millions of dollars, this is not enough. If anything happens, they are out a LOT of money. So, we’ve created Segregated Accounts. These are not available in the USA, so you would have to open an account with FXCM UK, but it’s just as easy to open an account with them as well. If there were to be a case where FXCM UK went bankrupt (yeah, not happening anytime soon), client funds in segregated accounts would receive priority in bankruptcy proceedings as secured creditors. That means you’re toward the front of the line for your money, not last in line, like in the USA. So, if you’re planning to send a lot of money our way to trade, and you’re worried about it, open with our UK branch and get a segregated account. It’ll give you an extra level of protection… and it doesn’t cost a thing.
Tags: dollar, forex, forex news, forex trading
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