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
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1
Interactive Brokers -
2
eToro USAeToro USA LLC and eToro USA Securities Inc.; Investing involves risk, including loss of principal; Not a recommendation -
3
Plus500USTrading in futures and options involves the risk of loss and is not suitable for everyone. -
4
Moomoo -
5
CEX.IO -
6
xChief
Here is a short summary of why we think each broker belongs in this top list:
- Interactive Brokers - Interactive Brokers (IBKR) is a premier brokerage, providing access to 150 markets in 33 countries, along with a suite of comprehensive investment services. With over 40 years of experience, this Nasdaq-listed firm adheres to stringent regulations by the SEC, FCA, CIRO, and SFC, amongst others, and is one of the most trusted brokers for trading around the globe.
- eToro USA - eToro is a social investing platform that offers short-term and long-term trading on 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, eToro is still one of the most respected brands in the industry. eToro securities trading is offered by eToro USA Securities, Inc.
- Plus500US - Plus500US is a well-established broker that entered the US market in 2021. Authorized by the CFTC and NFA, it provides futures trading on forex, indices, commodities, cryptocurrencies, and interest rates. With a 10-minute sign-up, a manageable $100 minimum deposit, and a straightforward web platform, Plus500 continues to strengthen its offering for traders in the US.
- Moomoo - Moomoo is an SEC-regulated app-based investment platform that offers a straightforward and affordable way to invest in Chinese, Hong Kong, Singaporean, Australian and US stocks, ETFs and other assets. Margin trading is available and the brand offers a zero-deposit account as well as several bonuses.
- 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.
- xChief - xChief 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.
Interactive Brokers
"Interactive Brokers is one of the best brokers for advanced day traders, providing powerful charting platforms, real-time data, and customizable layouts, notably through the new IBKR Desktop application. Its superb pricing and advanced order options also make it highly attractive for day traders, while its diverse range of equities is still among the best in the industry."
Christian Harris, Reviewer
Interactive Brokers Quick Facts
| Demo Account | Yes |
|---|---|
| Instruments | Stocks, Options, Futures, Forex, Funds, Bonds, ETFs, Mutual Funds, CFDs, Cryptocurrencies |
| Regulator | FCA, SEC, FINRA, CFTC, CBI, CIRO, SFC, MAS, MNB, FINMA, AFM |
| Platforms | Trader Workstation (TWS), IBKR Desktop, GlobalTrader, Mobile, Client Portal, AlgoTrader, OmniTrader, TradingView, eSignal, TradingCentral, ProRealTime, Quantower |
| Minimum Deposit | $0 |
| Minimum Trade | $100 |
| Leverage | 1:50 |
| Account Currencies | USD, EUR, GBP, CAD, AUD, INR, JPY, SEK, NOK, DKK, CHF, AED, HUF |
Pros
- There's a vast library of free or paid third-party research subscriptions catering to all types of traders, plus you can enjoy commission reimbursements from IBKR if you subscribe to Toggle AI.
- Interactive Brokers has been named Best US Broker for 2025 by DayTrading.com, recognizing its long-standing commitment to US traders, ultra-low margin rates, and global market access at minimal cost.
- Interactive Brokers has launched ForecastTrader, a unique, zero-commission product where users can trade yes/no Forecast Contracts on political, economic, and climate events, with fixed $1 payouts per contract, 24/6 market access, and 3.83% APY on held positions.
Cons
- Support can be slow and frustrating based on tests, so you might find it challenging to reach customer service representatives promptly or encounter delays in resolving issues.
- You can only have one active session per account, so you can’t have your desktop program and mobile app running simultaneously, making for a sometimes frustrating trading experience.
- IBKR provides a wide range of research tools, but their distribution across trading platforms and the web-based 'Account Management' page lacks consistency, leading to a confusing user experience.
eToro USA
"eToro remains a top pick for traders looking for leading social investing and copy trading services. With a low deposit, zero commissions and an intuitive platform, the broker will meet the needs of newer day traders."
eToro USA Quick Facts
| Demo Account | Yes |
|---|---|
| Instruments | Stocks, Options, ETFs, Crypto |
| Regulator | SEC, FINRA |
| Platforms | eToro Trading Platform & CopyTrader |
| Minimum Deposit | $100 |
| Minimum Trade | $10 |
| Account Currencies | USD |
Pros
- Investors can access Smart Portfolios for a more hands-off approach, covering a range of sectors and markets such as renewable energy and artificial intelligence
- A free demo account means new users and prospective day traders can try the broker risk-free
- eToro USA Securities is a trustworthy, SEC-regulated broker that is a member of FINRA and SIPC
Cons
- Average fees may cut into the profit margins of day traders
- There's no MetaTrader 4 platform integration for traders who are accustomed to using third-party charting tools
- The proprietary terminal doesn't support trading bots and there are no additional stock market analysis tools
Plus500US
"Plus500US stands out as an excellent choice for beginners, offering a very user-friendly platform, low day trading margins, and access to the Futures Academy to enhance trading skills. Its powerful tools and reliable service helped it scoop second place in DayTrading.com's annual 'Best US Broker' award."
Michael MacKenzie, Reviewer
Plus500US Quick Facts
| Demo Account | Yes |
|---|---|
| Instruments | Futures on Cryptocurrencies, Metals, Agriculture, Forex, Interest rates, Energy, Equity Index future contracts |
| Regulator | CFTC, NFA |
| Platforms | WebTrader, App |
| Minimum Deposit | $100 |
| Minimum Trade | Variable |
| Leverage | Variable |
| Account Currencies | USD |
Pros
- The trading app provides a terrific user experience with a modern design, a clean layout and mobile-optimized charts
- The Futures Academy is an excellent resource for new traders with engaging videos and easy-to-follow articles, while the unlimited demo account is great for testing strategies
- The straightforward account structure, pricing model and web platform offer an easier route into futures trading than rivals like NinjaTrader
Cons
- Despite competitive pricing, Plus500US lacks a discount program for high-volume day traders, a scheme found at brokers like Interactive Brokers
- Plus500US does not offer social trading capabilities, a feature available at alternatives like eToro US which could strengthen its offering for aspiring traders
- While Plus500US continues to broaden its investment offering, it's currently restricted to around 50+ futures with no stocks
Moomoo
"Moomoo remains an excellent choice for new and intermediate stock traders who want to build a diverse investment portfolio. What really stands out is the broker's user-friendly app and the low trading fees."
Moomoo Quick Facts
| Demo Account | Yes |
|---|---|
| Instruments | Stocks, Options, ETFs, ADRs, OTCs |
| Regulator | SEC, FINRA, MAS, ASIC, SFC |
| Platforms | Desktop Platform, Mobile App |
| Minimum Deposit | $0 |
| Minimum Trade | $0 |
| Leverage | 1:2 |
| Account Currencies | USD, HKD, SGD |
Pros
- The ‘Moomoo Token’ generates dynamic passwords for transaction security - a unique and helpful safety feature
- There are reduced options contract fees from $0.65 to $0
- There is no minimum deposit requirement making the broker accessible for beginners
Cons
- There is no negative balance protection, which is a common safety feature at top-tier-regulated brokers
- It's a shame that there is no 2 factor authentication (2FA), despite the other security features on offer
- There is no phone or live chat support - common options at most other brokers
CEX.IO
"CEX.IO continues to serve a range of crypto investors looking to buy, sell, trade, hold and earn with low fees. The tiered pricing structure will appeal to active traders while rookie investors will enjoy the straightforward platform interface and excellent education."
Tobias Robinson, Reviewer
CEX.IO Quick Facts
| Demo Account | No |
|---|---|
| Instruments | Cryptos |
| Regulator | GFSC |
| Platforms | TradingView |
| Minimum Deposit | $20 |
| Minimum Trade | $1 |
| Account Currencies | USD, EUR, GBP |
Pros
- The proprietary terminal features an advanced charting package from TradingView, including 50+ technical indicators
- CEX.IO continues to offer competitive pricing with 0.01% taker and 0% maker fees for high-volume traders
- There's a wide range of global payment methods available including PayPal
Cons
- Deposit and withdrawal fees are relatively high, including 0.3% + $25 for SWIFT withdrawals
- The broker has limited regulatory oversight
- A maintenance fee applies after 12 months of no activity
xChief
"xChief continues to prove popular with investors looking to trade highly leveraged CFDs on the popular MetaTrader platforms. The broker's rebate scheme and investment accounts will particularly appeal to seasoned traders. However, the lack of top-tier regulatory oversight is a major drawback."
xChief Quick Facts
| Demo Account | Yes |
|---|---|
| Instruments | CFDs, Forex, Metals, Commodities, Stocks, Indices |
| Regulator | ASIC |
| Platforms | MT4, MT5 |
| Minimum Deposit | $10 |
| Minimum Trade | 0.01 Lots |
| Leverage | 1:1000 |
| Account Currencies | USD, EUR, GBP, JPY, CHF |
Pros
- xChief delivers a high-quality day trading environment via the MT4 and MT5 platforms, with market-leading charts, indicators and tools
- The broker offers several account types to suit different traders, including a Cent account for beginners and pro-level hedging/netting accounts
- The low minimum deposit of $10 will appeal to beginners, as well as the beginners’ guides in the Library
Cons
- The total range of 150+ assets is much lower than most competitors who typically offer hundreds
- xChief is an offshore broker with weak regulatory oversight from the VFSC, so traders will receive limited safeguards
- Fees and minimums are imposed on most withdrawal methods, including a €60 minimum for SWIFT bank transfers
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”.
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 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 trusted 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
- Safety – When trading with brokers with segregated accounts, investors’ funds are protected from misuse by a company.
- Indicates trustworthiness – While not a full indicator of a brand’s credentials, brokers with segregated accounts are more likely to be trustworthy and highly regarded.
- Access to funds – Brokers that have segregated asset accounts can pay out on withdrawal requests from a high volume of clients without having to restrict access.
Disadvantages Of Brokers With Segregated Accounts
- Less choice – If only trading with brokers that use segregated bank accounts, investors may be limited in choice for markets like cryptos or binary options.
- Not 100% reliable – Without regular audits by an independent company or a stringent regulator, brokers can break the rules and use client funds for their own trading or to cover liabilities. So it is not a full-proof security measure.
How To Compare Brokers With Segregated Accounts
When it comes to choosing a broker that uses segregated accounts, look for the following qualities:
- Regulation – A broker regulated by a reputable licencing body is more likely to offer solid protection to investors from fraud. Among the top agencies are the FCA, ASIC, and CySEC.
- Low fees – Brokers with zero commission and low spreads are often favored by traders. These can help protect profit margins, especially if you are actively day trading.
- Wide range of trading assets – Ensuring that a broker supports your favored trading markets is important, whether that’s major forex pairs, stocks and shares, or precious metals like gold.
- Trading platforms – Traders will have different requirements. Some investors may prefer simple and accessible web-based software, while more experienced speculators may require advanced, capable platforms like MetaTrader 4 or MetaTrader 5.
- Customer support – A dependable and knowledgeable customer support team can be critical when investors find themselves with urgent trading issues. The top brokers with segregated accounts offer 24/5 or 24/7 support through live chat, phone and email.
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.
Audits
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.
FAQs
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.