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Basics

Segregated funds — definition & meaning

Client money kept separate from the broker's own operating money.

Segregated funds are client deposits held in separate accounts, apart from the broker's own money. If the broker fails, your funds shouldn't be used to pay its creditors.

It is a core protection offered by reputable, regulated brokers. Its absence is a serious red flag when choosing where to trade.

The information on Trding.io is for general information only and is not investment advice. Trading involves a real risk of losing money, and most retail traders lose. Never trade money you cannot afford to lose.

Related terms

Regulation
Oversight of brokers by financial authorities to protect clients.
Negative balance protection
A safeguard ensuring you can't lose more than your account holds.
Demo account
A practice account with virtual funds to trade in real market conditions.
Long
Buying an asset expecting its price to rise so you can sell higher.
Short
Selling an asset you expect to fall, aiming to buy it back cheaper.
Bid
The highest price a buyer is currently willing to pay.

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