Brokers With Segregated Accounts

A number of high-profile trading brokers and exchanges have gone bankrupt in recent years without suitable liquidity and client fund protection measures. As a result, investors are becoming increasingly aware of the importance of trading with a broker that holds customer funds in segregated bank accounts.

This article explains the pros of brokers with segregated accounts and how to compare providers. We also list the dangers of signing up with trading platforms that do not separate operating capital from traders’ funds.

Use our list of the top brokers with segregated accounts for a secure trading experience:

Brokers With Segregated Accounts

#1 - boasts a global reputation with multiple awards and 20+ years experience. Regulated in the US, EU, UK and Canada they provide a huge range of markets, not just forex, and offer competitive fees on a cutting-edge platform. The brand also provides a suite of additional tools, from performance analytics and SMART Signals to advanced charts and strategy builders.

" is an excellent broker for forex traders with over 80 currency pairs, tight spreads, low commissions and powerful platforms. The brand is also heavily regulated while its parent company is listed on the NASDAQ, giving it a high trust score."

- DayTrading Review Team
  • Instruments: Forex, Spot Metals
  • Regulator: NFA, CFTC
  • Platforms: MT4, MT5, TradingView, eSignal, AutoChartist, TradingCentral
  • Min. Deposit: $100
  • Min. Trade: 0.01 Lots
  • Leverage: 1:50

Forex Trading is a leading FX broker. The brand offers a wide range of currency pairs and some of the lowest fees in the industry. Spreads on the EUR/USD come in as low as 0.0 with a $7 commission per $100k.

Stocks Trading offers access to thousands of US, EU and UK stocks, with spreads of just 1 point. Speculate on household names as well as new IPOs. US stocks are available from just 1.8 cents per share.


  • Excellent trading tools including Trading Central, SMART Signals and MetaTrader 4
  • Top-rated forex and CFD broker
  • Up to 15% cashback rebates for active traders


  • No copy trading platform
  • $15 monthly inactivity fee
  • Investment offering varies between countries

#2 - eToro USA

eToro is a social investing platform that offers stocks, ETFs, options, and crypto. The broker is well-known for its user-friendly community-centred platform and competitive fees. With FINRA and SIPC oversight and millions of users across the world, this brand is highly respected. eToro securities trading is offered by eToro USA Securities, Inc.

"eToro is a top pick for users looking for social investing and copy trading. With a low deposit, zero commissions and an intuitive platform, the broker will meet the needs of newer traders."

- DayTrading Review Team
  • Instruments: Stocks, Options, ETFs, Crypto
  • Regulator: SEC, FINRA
  • Platforms: Own
  • Min. Deposit: $10
  • Min. Trade: $10

Stocks Trading

Trade popular US stocks and ETFs with zero commissions while fractional shares and options are also available. The eToro Academy and excellent market research are also huge bonuses for newer investors.

Crypto Trading

eToro US leads the way in cryptocurrency trading. 1% fee for buying or selling crypto added to the spread (from 0.75% for BTC), with their own wallet service and the largest number of cryptos to trade in the market. eToro copy trading is only for cryptos. Crypto asset investing is highly volatile and unregulated. No consumer protection. Tax on profits may apply.


  • eToro USA Securities is a trustworthy, SEC-regulated broker that is a member of FINRA and SIPC
  • A free demo account means new users and prospective traders can try the broker risk-free
  • The $10 minimum deposit and straightforward account opening process means beginners can get started quickly


  • No MetaTrader 4 platform integration
  • Narrower range of instruments than some competitors

#3 - Kwakol Markets

Kwakol Markets is a Nigerian headquartered broker with strong regulatory oversight in Australia and Canada. A great selection of asset classes are available, including synthetic products that simulate realistic market activity. Clients can trade on the MT4, MT5 and cTrader platforms, as well as a copy trading solution whereby a fee is only paid on profitable trades.

"Kwakol Markets is a good option for newer traders with a dedicated learning academy, copy trading and a choice of reliable platforms. New clients can also sign up and start trading in four straightforward steps."

- DayTrading Review Team
  • Instruments: CFDs, Forex, Stocks, Indices, Commodities, Crypto
  • Regulator: ASIC, FINTRAC
  • Platforms: MT4, MT5, AutoChartist
  • Min. Deposit: $1
  • Min. Trade: 0.01 Lots
  • Leverage: 1:1000

CFD Trading

CFDs are available on a breath of underlying assets, including stocks, indices, commodities, forex and cryptos. High leverage up to 1:500 is available alongside a 0.01 minimum lot size and award-winning software. For the tightest spreads from 0 pips, opt for the Premium account.

Forex Trading

Kwakol Markets offers a wider range of forex pairs than most competitors, with 90+ assets available. Users get fast execution speeds through the ECN model and competitive spreads. On the negative side, not all currency pairs are available on MT4.

Stocks Trading

Trade stocks with zero commissions and ultra-fast trade executions. Clients get exposure to US, EU, Asian and Russian stock markets on both the MT4 and MT5 platforms. Stocks are available as CFDs, so users will not own the underlying shares.

Crypto Trading

Trade cryptos against fiat currencies, other cryptocurrencies and metals like gold. This separates the broker from many alternatives that only offer cryptos paired with the USD. High leverage up to 1:20 on cryptos is available, plus support for Expert Advisors and copy trading.


  • Full range of investments with 1000+ assets including cryptos
  • MetaTrader 4 and MetaTrader 5 integration
  • Demo account available


  • Lack of deposit and withdrawal methods
  • High deposits for premium features
  • Regional restrictions in certain countries

#4 - Moomoo

Moomoo is an SEC-regulated app-based investment platform that offers a straightforward and affordable way to invest in Chinese, Hong Kong and US stocks, ETFs and other assets. Margin trading is available and the brand accepts low minimum deposits while also decent several bonuses.

"Moomoo will appeal to stock traders who want to build an investment portfolio through a user-friendly app with low to zero commissions."

- DayTrading Review Team
  • Instruments: Stocks, Options, ETFs, ADRs, OTCs
  • Regulator: SEC, FINRA, MAS
  • Platforms: Own
  • Min. Deposit: $0
  • Min. Trade: $0

Stocks Trading

Moomoo offers online US and Hong Kong stocks, and China-A shares trading across options, ETFs, ADRs, OTC, plus IPOs on a proprietary trading platform. The zero commissions, no account minimum and free level 2 data are standout features.


  • Regulated by US Securities and Exchange Commission (SEC) and the Monetary Authority of Singapore (MAS)
  • Member of FINRA and the Securities Investor Protection Corporation (SIPC)
  • AI alerts


  • No phone or live chat support
  • No 2 factor authentication (2FA)
  • No negative balance protection

#5 - Nadex

Nadex is a renowned exchange and binary options provider, based in the US. The company is fully regulated by the CFTC and offers options, call spreads and Knock Out contracts. Nadex also has just a $1 entry or exit fee and a user-friendly platform and proprietary app.

"Users looking to trade short-term binary options with a US-regulated broker will find a good platform in Nadex."

- DayTrading Review Team
  • Instruments: Binary Options, Knock Outs™, Call Spreads
  • Regulator: CFTC
  • Platforms: Own
  • Min. Deposit: $250
  • Min. Trade: $1

Forex Trading

Speculate on 11 popular currency pairs via Knock Out contracts, call spreads and binary options. Nadex offers a wider range of timeframes than most binary options brokers, with contracts spanning from intraday to weekly.

Stocks Trading

Speculate on a handful of global indices via binary options contracts, including the S&P 500 and FTSE 100. There are low commissions and traders can see fixed payouts and risk levels before opening a trade.

Crypto Trading

Nadex offers a limited list of cryptos with just Bitcoin and Ethereum. Traders can go long or short though with straightforward binary options contracts that mean you don't need to own the underlying token.


  • Free demo account for new users
  • A range of timeframes that will suit both short and longer term strategies
  • Proprietary mobile app with good range of indicators and charting tools


  • No MT4 or MT5 platform integration
  • Products and tools are more advanced than some alternatives
  • No welcome bonuses or financial incentives

#6 - CEX.IO

CEX.IO is one-stop-shop for crypto investors where you can buy and sell popular digital tokens, speculate on prices with margin trading and earn rewards through staking. Since it launched in 2013, more than five million traders have deposited over $7.5 billion. CEX.IO is registered with the FinCEN in the US and the GFSC in the EU.

"CEX.IO will serve a range of crypto investors looking to buy, sell, trade, hold and earn. The tiered pricing structure will appeal to active traders while rookie investors will enjoy the straightforward platform interface and excellent education."

- DayTrading Review Team
  • Instruments: Crypto
  • Regulator: GFSC
  • Platforms: TradingView
  • Min. Deposit: $20
  • Min. Trade: $1

Crypto Trading

CEX.IO offers hundreds of popular cryptocurrencies including big names like Bitcoin, Ethereum and Litecoin. The trading platform is well-designed with sophisticated charting and analysis tools. Traders can also reduce their monthly volumes through the tiered pricing structure.


  • 24/7 support with fast response times during tests
  • High quality educational materials through the University
  • Wide range of payment methods including PayPal


  • A maintenance fee applies after 12 months of no activity
  • Cluttered interface on Exchange Plus
  • High deposit and withdrawal fees

#7 - ForexChief

ForexChief is a foreign exchange and CFD broker, established in 2014. The company is based offshore and registered with the VFSC and FMA. Users can choose between a wide selection of accounts and base currencies, making ForexChief accessible to global traders. The brand also stands out for its no deposit bonus and fee rebates for high-volume traders.

"ForexChief will prove popular with investors looking to trade highly leveraged CFDs on the popular MetaTrader platforms. The large welcome bonus and low starting deposit will also appeal to new traders."

- DayTrading Review Team
  • Instruments: CFDs, Forex, Metals, Commodities, Stocks, Indices
  • Regulator: VFSC
  • Platforms: MT4, MT5
  • Min. Deposit: $10
  • Min. Trade: 0.01 Lots
  • Leverage: 1:1000

CFD Trading

ForexChief offers a competitive range of CFDs, encompassing crypto, indices, energies and metals. A clear pricing schedule is available to clients with no hidden charges. Traders can also access very high leverage up to 1:1000.

Forex Trading

ForexChief supports spot foreign exchange trading on all account types for 40+ major, minor and exotic currency pairs on the leading MT4 and MT5 platforms. Spreads are tight starting from zero and there are no dealers or requotes.

Stocks Trading

ForexChief offers 100 US company stocks CFDs for MT4 DirectFX and Classic+ account holders. Investors can speculate on the price of some of the world's largest companies, including Apple and Coca Cola. Spreads start from 5.

Crypto Trading

ForexChief supports crypto trading with five major digital currencies paired against the US dollar. Traders can bet on rising and falling prices with leveraged CFDs and market-leading trading software.


  • 8 account types to suit different strategies and requirements
  • Copy trading solution with signals
  • Low margin rates


  • Withdrawal fees on several payment methods
  • Weak regulatory oversight
  • Limited market research

#8 - CloseOption

CloseOption is a Georgia-headquartered broker with over a decade in the trading industry. The brand offers high/low binary options trading on forex and crypto markets, with decent payouts, welcome bonuses, 24/7 customer support and intuitive trading software.

"CloseOption is a good pick for traders seeking a user-friendly binary options platform with high payouts and joining bonuses."

- DayTrading Review Team
  • Instruments: Binary Options on Forex & Cryptos
  • Regulator: National Bank of Georgia
  • Platforms: Own
  • Min. Deposit: $5
  • Min. Trade: $1

Forex Trading

CloseOption offers binaries on 25+ forex pairs, including majors like EUR/USD and a few minors like AUD/JPY. Payouts vary by currency, with decent typical payouts of 75% for GBP/USD.

Crypto Trading

CloseOption traders can access high/low binary options on five major cryptos all paired with USD. Payouts of 40% are available due to digital assets' high market volatility, which compares well with rivals.


  • CloseOption offers weekly trading tournaments with cash prizes
  • Multiple global payment methods are available
  • New traders can get started with a $5 minimum deposit


  • Clients need to deposit $50,000+ to qualify for the best payouts
  • Binary options are only available on fiat and digital currencies
  • CloseOption is not regulated by a well-regarded trading authority

#9 - Empower

Empower, previously Personal Capital, is a US-based and SEC-regulated trading platform and advisory firm. Clients can access pensions, robo-advisors and do-it-yourself investing in stocks, mutual funds, fixed-income products and ETFs. Millions of clients trust Empower with their long-term investments, attracted by the suite of free financial planning tools and excellent reputation.

"Empower is best for hands-off investors looking for a US-regulated platform and robo-advisor with free financial planning services. However, investors need to be willing to make a large minimum investment and pay higher than average fees for premium services."

- DayTrading Review Team
  • Instruments: Stocks, ETFs, Mutual Funds, Fixed Income
  • Regulator: SEC, FINRA
  • Platforms: Own
  • Min. Deposit: $1 (Cash), $100,000 (Robo Advisor)
  • Min. Trade: Variable

Stocks Trading

Empower offers opportunities on a range of sectors spanning major US stock exchanges, from financial services to technology and manufacturing. We rate the commission-free pricing and thousands of mutual funds and ETFs available in the self-investing account or ready-made portfolios.


  • Award-winning customer support team
  • Intelligent budgeting and portfolio management tools
  • Empower's advisory services are regulated by the SEC


  • Limited choice of payment methods with only wire transfer
  • No forex, commodity or crypto trading
  • 0.49% - 0.89% management fees are high vs alternatives

#10 - Personal Capital

Empower (formerly Personal Capital) is a popular, SEC-regulated US financial advisory and investment platform that offers pensions, ready-made investment plans and do-it-yourself, commission-free investing through a large range of mutual funds, ETFs, individual equities and fixed-income securities. The broker has an impressive 3.4 million clients.

"Personal Capital (now Empower) is a great option for investors seeking a flexible way to build an investment portfolio or pension plan. It is a particularly good fit for US traders owing to the SEC oversight."

- DayTrading Review Team
  • Instruments: Stocks, ETFs, Mutual Funds, Fixed Income
  • Regulator: SEC
  • Platforms: Own
  • Min. Deposit: $1 (Cash), $100,000 (Robo Advisor)
  • Min. Trade: Variable

Stocks Trading

Commission-free trading on US stock equities and ETFs as well as access to thousands of mutual funds are available through Empower's DIY investment account. You will also gain exposure to stock markets through the firm's ready-made investment plans and pensions.


  • Segregated client funds with a top-tier custodian bank
  • Strong regulatory oversight from SEC
  • Mobile app


  • Wealth management services only for customers with $100,000+ in invested assets
  • An annual advisory fee of 0.89%
  • US residents only

Segregated Accounts Explained

In trading, a broker that uses a segregated bank account holds client funds separately from company capital. This means the broker does not use its customers’ funds for trading, lending, or other purposes.

The top trading brokers conduct regular audits of their segregated asset accounts to give investors peace of mind regarding their funds. The most secure brokers also store client funds in reliable, Tier-1 bank accounts to offer maximum protection.

Why Are Brokers With Segregated Accounts Important?

Many traders assume their funds are safe with a trading broker or online exchange. However the collapse of several big names, such as FTX, has brought the importance of using a brokerage with segregated accounts into sharp focus.

When a broker keeps client funds segregated from company capital, the firm can theoretically pay out all of its clients should they wish to withdraw their net balance. However, firms that do not use segregated accounts can be exposed when many traders want to take out funds, leaving users empty-handed.

Mass withdrawals often have a knock-on effect when more and more investors scramble to get their capital, spiralling the broker into financial difficulties.

This was illustrated when, despite being a CFTC-regulated crypto exchange, FTX used client funds as capital to invest through their sister company – Alameda Research. A wave of client withdrawal requests exposed that FTX did not have the means to cover all of its clients’ withdrawals.

However, FTX is not the only trading provider that has used client funds for its own purposes. MF Holdings also used client funds from supposedly segregated bank accounts to cover their margin obligations. The CFTC fined the brokerage $100 million, and after a year, investors received their funds back.

How To Check If A Broker Uses Segregated Accounts

While many of the largest brokerage firms use segregated bank accounts to protect client funds, investors should never assume that their capital is safe.

With forex brokers, general investment brokers, crypto exchanges or any other online finance company, information about segregated accounts is usually found on their website.

When you’re on a broker’s website, navigate to the “About” section of the site. Many forex brokers will advertise their fund protection measures here, but if not, there will usually be a separate section for “Regulation” or “Safety of Funds”.

Best trading brokers with segregated accounts
How to check a broker offers segregated accounts – FxGrow

Another port of call is checking on a trusted broker review site like ours to see if our experts have confirmed whether the broker uses segregated bank accounts to store traders’ funds.

In addition, traders should consider any stipulations to these segregated holdings. For example, as the CFTC allows brokers to invest client funds in approved global government securities, some firms may hold substantial amounts of client capital in this form.

This may make funds illiquid or, in the event of a significant regional economic downturn, even not have investors’ supposedly safe segregated capital.

For example, Interactive Brokers‘ segregated accounts have exposure to US Treasury securities. Even the largest brokerage firms, if holding client funds this way, may be affected by a significant economic incident.

Regulation & Segregated Accounts

The most reputable financial regulators will require securities and forex brokers to hold client funds in segregated accounts. These bodies include the UK Financial Conduct Authority (FCA), the Australian Securities and Investments Commission (ASIC), the Cyprus Securities & Exchange Commission (CySEC), and the US Commodity Futures Trading Commission (CFTC).

However, as demonstrated by the collapse of FTX, this does not apply to crypto exchanges – very few of which are regulated regardless.

Other common forex broker regulators include the Belize-based International Financial Services Commission (IFSC) and the Vanuatu Financial Services Commission (VFSC).

These regulators also require brokers to hold client funds in degraded accounts. However, their checks may not be as routine or stringent as more prominent licensing bodies.

How To Approach Non-Segregated Account Brokers

Some brokers and online financial providers may not have any such assurances or may not have the regulation to underscore their claims. In this case, it is an investor’s responsibility to conduct their due diligence.

Some brokers or exchanges, such as the Kraken crypto exchange, may conduct independent audits of their holdings to reassure investors that their cash is safe.

However, some unregistered brokers do not segregate client funds from their own. This is especially common with less regulated sections of the finance industry, such as binary options brokers and crypto exchanges.

Traders should only hold what they can afford to lose with such brokers at any time.

Advantages Of Brokers With Segregated Accounts

Disadvantages Of Brokers With Segregated Accounts

How To Compare Brokers With Segregated Accounts

When it comes to choosing a broker that uses segregated accounts, look for the following qualities:

Segregated Accounts VS Separate Accounts

While separate and segregated fund accounts sound similar, they are different. Separate accounts are bespoke investment accounts, usually co-managed with a professional wealth manager or firm.

Segregated accounts refer to client funds being held in segregated bank accounts, meaning brokers cannot use client funds to trade, loan or invest.

Other Useful Security Measures

In addition to brokers with segregated accounts, here are a few more security measures to look out for when trading online:

Fund Protection & Insurance

Choosing a broker that offers insurance for trading funds is another way to help protect your capital. Some brokers are signed up to fund protection schemes such as the Financial Services Compensation Scheme (FSCS) as part of their regulatory obligations. The FSCS protects client funds up to £85,000 per account.

Some trading brokers offer additional insurance, sometimes exceeding $1 million, to provide clients further peace of mind. These programs are underwritten by prominent insurance companies that regularly ensure firms hold a significant amount of free capital.

Negative Balance Protection

Losses can quickly build up when trading using leverage or margin on volatile markets such as forex or CFDs. While you can always set a stop-loss level to prevent significant losses, using a broker that employs negative balance protection (NBP) is also recommended.

Negative balance protection ensures that a trader’s funds never dip below zero. Brokers do this by liquidating any positions that would cause this and restoring negative balances to zero if positions cannot be automatically closed in time.


As outlined above, the best way to ensure that a broker is using segregated accounts is to pick a company that conducts regular independent audits of its finances. These checks can be done by regulators or, in the case of some brokers such as the Kraken crypto exchange, by third parties.

Two-Factor Authentication

Many brokers offer two-factor authentication (2FA) to secure their client’s trading accounts. This measure requires a one-time passcode when they log in.

Often tied to a trader’s registered phone, this can prevent fraudulent login attempts even when an account’s primary password is exposed in a data breach.

Final Word On Brokers With Segregated Accounts

Using a broker or exchange with segregated bank accounts for client funds is a no-brainer when trading online. While investors may be restricted to a select few crypto exchanges and binary options providers, the safety benefits of a broker that does not use client funds for its own means are too important to miss out on.

However, using a broker with segregated accounts still does not guarantee that firms will not use traders’ funds when in a financial pinch. This was illustrated by the collapse of MF Holdings, which defied CTFC regulations to cover its own losses using client funds.

Head to our list of the best brokers with segregated accounts to get started.


Are Online Trading Accounts Safe?

Most trading brokers will never collapse, but choosing a brokerage that keeps client funds separate from its own capital gives investors better protection from the effects of significant market events and mass withdrawals.

How Can I Spot A Segregated Trading Account?

Most brokers will let investors know that they hold client funds in segregated bank accounts in the “About” section, “Regulation” page or “Safety of Funds” section on their websites. Alternatively, we have reviewed and ranked the top trading brokers with segregated accounts.

Can Unregistered Brokers Still Use Segregated Accounts?

Some unregulated brokers will still claim to segregate client funds from their own. However, this can be difficult to verify without regular audits or oversight from a reputable regulator.

Are Online Trading Accounts Insured?

Some brokers with segregated accounts also insure their clients’ funds as part of a fund protection scheme or a separate insurance policy. These firms offer greater protection than trading brokers with segregated accounts only.

Can I Open A Segregated Trust Account?

Many brokers offer strong protection measures to protect client funds, whether in the form of a segregated trust, asset or individual account. Many will use segregated accounts and some will provide additional insurance.