Are client funds kept in segregated accounts with forex brokers?

Many regulated forex brokers are required to keep client funds in segregated bank accounts, separate from the company’s operating capital. This means your trading balance should not be used to pay the broker’s expenses or debts. Segregation helps protect clients if the broker experiences financial trouble, because those funds are legally identified as belonging to clients, not the firm. However, segregation does not eliminate risk: mismanagement, fraud, or gaps in regulation can still lead to losses. Some offshore or lightly regulated brokers may not segregate funds at all. Before funding an account, check the broker’s client‑money policy and legal documents, and prefer firms that clearly state that client funds are fully segregated at reputable banks.