What happens to my money if a forex broker goes bankrupt?

If a regulated forex broker becomes insolvent, what happens to your money depends on local laws, whether funds were segregated, and any compensation schemes. With good brokers, client funds are held in segregated bank accounts separate from the broker’s own money. In a bankruptcy, liquidators should first return these segregated funds to clients, after verifying balances and handling any open positions. In some jurisdictions, compensation schemes may reimburse eligible clients up to a certain limit if funds are missing. However, this process can be slow, and amounts above scheme limits may be lost. With unregulated or poorly run brokers, there may be no segregation or legal protection, and clients can lose most or all of their deposits.