Segregated Client Funds
Brokers & RegulationClient deposits held separately from a broker's own operating funds, so they can't be used to cover the broker's business debts.
Segregated client funds are trader deposits held in bank accounts entirely separate from a broker's own operating capital, so client money can't be used to cover the broker's business expenses or debts. Reputable regulators like the FCA and CySEC require this segregation as a core condition of a broker's license.
Segregation is meant to protect client funds if the broker becomes insolvent, though it doesn't protect against trading losses — it protects the money itself from being treated as company assets in a bankruptcy.
Related terms
More in Brokers & Regulation
ECN vs Market MakerRegulation (FCA, CySEC, ASIC)STP BrokerDealing Desk / No Dealing Desk (NDD)Introducing Broker (IB)White Label BrokerKYC (Know Your Customer)AML (Anti-Money Laundering)Prime of Prime (PoP)Liquidity ProviderFinancial Conduct Authority (FCA)Cyprus Securities and Exchange Commission (CySEC)
Put it to use
Ready to put it into play?
Now you know what Segregated Client Funds means — see our broker reviews and trading guides.
✓Independent broker reviews✓Regulation-first broker checks✓Free calculators