Broker safety
What is Segregated funds?
By the verify.trading team · Last reviewed · How we write
Segregated funds means a broker keeps client money separate from its own money, so client funds are not treated as the firm's assets if it fails.
Key points
- Client money held apart from the firm's own.
- A safeguard, not a guarantee.
- Depends on the regulator and entity.
Segregated funds explained
In the UK, FCA client money rules require authorised firms to hold client money apart from their own. Segregation is a safeguard, not a guarantee: it does not protect against trading losses and it is only as reliable as the firm's controls.
Ask which entity holds your funds and which regulator's client money rules apply to it.
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General education, not investment advice. Regulatory limits and prop firm rules change; check the official source. verify.trading provides records and analysis, not investment advice; trading involves significant risk of loss. Absence of a regulatory action is not an endorsement, and absence from a regulator's list is not proof of authorisation.