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.
Brokers With Segregated Accounts
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- Demo account
- Platforms: MT4, MT5, TradingCentral
- Min. deposit: $5
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- Demo account
- Min. deposit: $100
- Min. trade: 0.01 Lots
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- Demo account
- Regulator: FCA, ASIC, CMVM , FSCA, SCB, FSA
- Platforms: TN Trader, MT4, TradingView
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- Demo account
- Min. deposit: $0
- Min. trade: 0.01 Lots
73-89% of retail investor accounts lose money when trading CFDs -
- Demo account
- Regulator: FCA, ASIC, CySEC, FSC, SCB, FSA
- Platforms: MT4, MT5, TradingView, TradeLocker
71.28% of retail traders lose money when trading CFDs -
- Demo account
- Regulator: ASIC, VFSC, FSA
- Platforms: MT4, MT5, cTrader, TradingView, DupliTrade
Learn how we test brokers and why you can trust our ratings.
This is why we think these brokers are the best in this category in 2026:
- XM 4.8/5 XM is a globally recognized forex and CFD broker with 20+ million clients in 190+ countries. Since 2009, this trusted broker has been delivering low trading fees across its growing roster of 1000+ instruments. It also offers a comprehensive MetaTrader experience that we've observed firsthand placing test trades.
- AvaTrade 4.9/5 Established in 2006, AvaTrade is a leading forex and CFD broker trusted by over 400,000 traders. Operating under regulation in 9 jurisdictions, AvaTrade processes an impressive 2+ million trades each month. Through like MT4, MT5, and its proprietary WebTrader, the broker provides a growing selection of 1,250+ instruments. Whether it’s CFDs, AvaOptions, or the more recent AvaFutures, short-term traders at all levels will find opportunities. With terrific education and 24/5 multilingual customer support, AvaTrade delivers the complete trading experience.
- Trade Nation 4.4/5 Trade Nation is a top FX and CFD broker regulated in multiple jurisdictions including the UK and Australia. The firm offers low-cost fixed and variable spreads on 1000+ assets with robust trading platforms and training materials. The Signal Centre can also be used for trade ideas.
- Pepperstone 4.8/5 Established in Australia in 2010, Pepperstone is a top-rated forex and CFD broker with over 830,000 clients worldwide. It offers access to 1,400+ instruments on leading platforms MT4, MT5, cTrader and TradingView, maintaining low, transparent fees. Pepperstone is also regulated by trusted authorities like the FCA, ASIC, and CySEC, helping to ensure a secure environment for day traders at all levels.
- Eightcap 4.6/5 Eightcap is a multi-regulated forex and CFD broker established in Australia in 2009. The broker has proven popular with active day traders, providing 800+ instruments with tight spreads and notable improvements in recent years, integrating the leading TradingView platform, alongside AI-powered financial calendars and algo trading tools with zero coding experience required.
- Fusion Markets 4.6/5 Fusion Markets is an online broker established in 2017 and regulated by the ASIC, VFSC and FSA. It is best known for its low-cost forex and CFD trading, although its multiple account types and copy trading solutions cater to a range of traders. New clients can sign up and start trading in 3 easy steps.
Community Sentiment
See how users rate these brokers based on the average customer ratings submitted on DayTrading.com, plus ratings from Trustpilot, the Apple App Store and Google Play.
| Broker | Our Users' Rating | Trustpilot Score | Trustpilot Reviews | iOS App Rating | Android App Rating |
|---|---|---|---|---|---|
| XM | 3130 | ||||
| AvaTrade | 13545 | ||||
| Trade Nation | 2142 | ||||
| Pepperstone | 3666 | ||||
| Eightcap | 3908 | ||||
| Fusion Markets | 9999 |
XM
With a low $5 minimum deposit, advanced charting platforms in MT4 and MT5, expanding range of markets, and a Zero account offering spreads from 0.0, XM provides all the essentials for active traders, even earning our ‘Best MT4/MT5 Broker’ award in recent years.
Christian Harris, Reviewer
XM quick facts
- Demo Account
- ✔Yes
- Instruments
- CFDs, Forex, Stocks, Commodities, Indices, Thematic Indices, Precious Metals, Energies
- Regulator
- CySEC, DFSA, FSCA, SCA, FSA, FSC-Belize, FSC-Mauritius, CMA-Kenya, CMA-UAE
- Platforms
- MT4, MT5, TradingCentral
- Minimum Deposit
- $5
- Minimum Trade
- 0.01 Lots
- Account Currencies
- USD, EUR, GBP, JPY, ZAR
Pros
- XM’s customer support has delivered over years of testing, with 24/7 assistance in 30 languages, response times of under 2 minutes and a growing Telegram channel.
- XM’s growing roster of 1,400+ instruments provides diverse short-term trading opportunities, with unique turbo stocks, fractional shares, and more recently thematic indices.
- XM’s Zero account is ideal for day trading with spreads from 0.0 pips, 99.35% of orders executed in <1 second, and no requotes or rejections.
Cons
- While the XM app stands out for its usability and exclusive copy trading products, the selection of technical analysis tools needs to be improved to meet the needs of advanced traders.
- XM is falling behind the curve by not offering cTrader, which is favored over MetaTrader by some serious traders for its smoother user experience and superior charting package.
- Although trusted and generally well-regulated in some regions, XM also has global entities registered with the weak regulators like FSC (Belize) and FSA (Seychelles), whilst UK clients are no longer accepted, reducing its market reach.
AvaTrade
AvaTrade offers active traders everything they need: an intuitive WebTrader, powerful AvaProtect risk management, a smooth 5-minute sign-up process, and dependable support you can rely on in fast-moving markets.
Jemma Grist, Reviewer
AvaTrade quick facts
- Demo Account
- ✔Yes
- Instruments
- CFDs, Forex, Stocks, Indices, Commodities, ETFs, Bonds, Crypto, Spread Betting, Futures
- Regulator
- ASIC, CySEC, FSCA, ISA, CBI, JFSA, BVI, FSRA/ADGM, AFM, CMA-Kenya, CIRO (via Friedberg Direct)
- Platforms
- WebTrader, AvaTradeGO, AvaOptions, AvaFutures, MT4, MT5, AlgoTrader, TradingView, TradingCentral, DupliTrade
- Minimum Deposit
- $100
- Minimum Trade
- 0.01 Lots
- Account Currencies
- USD, EUR, GBP, CAD, AUD, ZAR
Pros
- Support at AvaTrade performed excellently during testing, with response times of 3 minutes and localized support in major trading jurisdictions, including the UK, Europe and the Middle East.
- Years on, AvaTrade remains one of the few brokers offering a bespoke risk management tool, AvaProtect, that insures losses up to $1M for a fee and is easy to activate on the platform.
- AvaTrade launched AvaFutures to offer low-margin access to global markets, then expanded in 2025 as one of the first brokers to add CME’s Micro Grain Futures, and then later in the year went further by integrating with TradingView.
Cons
- The AvaSocial app is good but not great – the look and feel, plus the navigation between finding strategy providers and account management needs upgrading to rival category leaders like eToro.
- AvaTrade’s WebTrader has improved, but work is still needed in terms of customizability – frustratingly widgets like market watch and watchlists can’t be hidden, moved, or resized.
- While signing up is a breeze, AvaTrade lacks an ECN account like Pepperstone or IC Markets, which provides the raw spreads and ultra-fast execution many day traders are looking for.
Trade Nation
Trade Nation suits discretionary traders who want to speculate on major indices like the US 500 or liquid FX pairs, and want the predictable all-in costs of fixed spreads. In tests, we found the fixed-spread TN Trader environment particularly useful for trading around scheduled economic releases owing to its reliable charting environment and because published spreads stayed capped.
Christian Harris, Reviewer
Trade Nation quick facts
- Demo Account
- ✔Yes
- Instruments
- CFDs, Forex, Indices, Shares, Commodities, Futures, Bonds, Spread Betting (UK and Ireland only), Cryptos (Bahamas entity only)
- Regulator
- FCA, ASIC, CMVM , FSCA, SCB, FSA
- Platforms
- TN Trader, MT4, TradingView
- Minimum Deposit
- $0
- Minimum Trade
- 0.1 Lots
- Account Currencies
- USD, EUR, GBP, AUD, ZAR, SEK, NOK, DKK
Pros
- Trade Nation's 2026 partnership with Volt has sped up payments for Australian traders, who can now make instant deposits and withdrawals using PayID, with the faster payout capabilities planned for clients in the UK and EU.
- In testing of the TN Trader account under normal market conditions, fixed spreads held while fills were prompt on major forex pairs, with a slight drift in the entry level as price ticked between click and fill.
- Trade Nation accounts can now be linked with TradingView, providing advanced multi-charts and the ability to execute trades directly.
Cons
- Offshore SCB and FSA entities allow retail clients up to 1:200 and 1:500 leverage compared to 1:30 in regions like the UK, Europe and Australia, so an FSA client can have 16 times the exposure of a UK retail client on the same trade, but with less oversight and no compensation scheme.
- There is no raw or ECN pricing tier, which are often prefered by day traders. No matter how much you deposit or trade, you use the same fixed (or variable on MT4) pricing as beginners, making it unsuitable for scalpers especially.
- The 2–20% rebate scheme is closed to FCA, CMVM, and ASIC clients, meaning active day traders in these regions who would benefit from transaction rebates cannot claim them.
Pepperstone
Pepperstone stands out as a top choice for day trading, offering razor-sharp spreads, ultra-fast execution, and advanced charting platforms for experienced traders. New traders are also welcomed with no minimum deposit, extensive educational resources, and exceptional 24/5 support (18h a day on weekends).
Christian Harris, Reviewer
Pepperstone quick facts
- Demo Account
- ✔Yes
- Instruments
- CFDs, Forex, Currency Indices, Stocks, Indices, Commodities, ETFs, Crypto CFDs, Spread Betting
- Regulator
- FCA, ASIC, CySEC, BaFin, DFSA, SCA, SCB, CMA-Kenya
- Platforms
- Pepperstone Trading Platform, MT4, MT5, cTrader, TradingView
- Minimum Deposit
- $0
- Minimum Trade
- 0.01 Lots
- Account Currencies
- USD, EUR, GBP, CAD, AUD, NZD, JPY, CHF, HKD, SGD
Pros
- Pepperstone has started providing trading in pre-IPO perpetual futures like SpaceX (SPCX.US-PERP) in select regions, such as the UAE.
- Award-winning customer support is available via telephone, email or live chat with response times of <5 minutes during testing and friendly agents knowledgeable about its products and trading tools.
- Pepperstone emerges as a low-cost broker, especially for serious day traders with spreads from 0.0 in the Razor account and rebates up to 30% (index and commodities) and $3/lot (forex) through the Active Trader program.
Cons
- Overnight holding fees are higher than that found with some Market Maker brokers (usually Benchmark + 2.5%). This makes pepperstone an ideal broker for day traders and forex scalpers but less suitable for swing traders who often keep position open overnight.
- Pepperstone has removed support for several tools that elevated the trading experience for active retail traders, notably Autochartist, Capitalise.ai and a free VPS for qualifying traders (now only pro traders in some countries).
- Execution may not feel as reliable in fast markets as headline speeds suggest. In our own testing, execution was fast at desired prices, but some community complaints focus on slippage, stop-loss fills and spread-sensitive order triggers during volatile conditions.
Eightcap
Eightcap delivers in every area for day traders with a growing selection of charting platforms, education via Labs, and AI-powered tools. Now sporting 120+ crypto CFDs, it's also become a stand-out choice for crypto trading, winning our 'Best Crypto Broker' award two years in a row.
Christian Harris, Reviewer
Eightcap quick facts
- Demo Account
- ✔Yes
- Instruments
- CFDs in Forex, Stocks, Indices, Commodities, Crypto
- Regulator
- FCA, ASIC, CySEC, FSC, SCB, FSA
- Platforms
- MT4, MT5, TradingView, TradeLocker
- Minimum Deposit
- $100
- Minimum Trade
- 0.01 Lots
- Account Currencies
- USD, EUR, GBP, CAD, AUD, NZD, SGD
Pros
- Eightcap Challenges, the broker's prop trading firm, is multi-regulated, removing the third-party risks we commonly see with white-label prop firms, and its tailoring its funded accounts to crypto traders with around 150 crypto pairs, plus it's integrated into the TradingView interface.
- Eightcap added TradeLocker in 2026 for certain regions, marking it out as the best regulated TradeLocker broker, while still delivering Eightcap's ultra-fast execution and low fees for active traders on the charting software.
- Having excelled across all key areas for day traders, Eightcap outperformed every competitor to win our 'Best Overall Broker' award for 2024, also securing our 'Best Crypto Broker' title for 2025 and 'Best TradingView Broker' for 2025.
Cons
- Eightcap needs to continue bolstering its suite of 800+ instruments to match category leaders like Blackbull Markets with its 26,000+ assets, featuring a particularly weak selection of commodities.
- The demo account expires after 30 days and can only be extended upon request - a notable inconvenience compared to the likes of XM with its unlimited demo mode.
- Despite a useful library of educational guides and e-books in Labs, Eightcap still trails IG’s comprehensive toolkit for aspiring traders with its dedicated IG Academy app and 18 course categories.
Fusion Markets
Fusion Markets is a standout option for forex traders looking for excellent pricing with spreads near zero, industry-low commissions and recently TradingView integration. It’s a particularly good broker for Australian traders where the company is headquartered and regulated by the ASIC.
Jemma Grist, Reviewer
Fusion Markets quick facts
- Demo Account
- ✔Yes
- Instruments
- CFDs, Forex, Stocks, Indices, Commodities, Crypto
- Regulator
- ASIC, VFSC, FSA
- Platforms
- MT4, MT5, cTrader, TradingView, DupliTrade
- Minimum Deposit
- $0
- Minimum Trade
- 0.01 Lots
- Account Currencies
- USD, EUR, GBP, CAD, AUD, NZD, JPY, CHF, HKD, SGD
Pros
- Fusion Markets continues to impress with its pricing that provides tight spreads with below-average commissions that will appeal to active day traders.
- Average execution speeds of around 37 milliseconds are noticeably faster than many rivals and can help day traders secure optimal prices in fast-moving markets.
- Withdrawal processing times have been slashed to under an hour and can be processed 24/7, making it faster and easier for active traders to withdraw any gains.
Cons
- Traders outside of Australia must sign up with weakly regulated global entities with limited safeguards, though in August 2026 they made negative balance protection available to all eligible accounts.
- While the selection of currency pairs trumps most rivals, the broker's alternative investment offering is average with no stock CFDs beyond the US.
- There is no proprietary trading platform or app built with beginners in mind, a notable drawback compared to AvaTrade.
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.
But the claim of ‘segregated client money accounts’ that you see in a broker’s marketing materials isn’t always as clear cut as it seems. The entity used, local regulations and more can impact how secure and separate the client money really is. We’ve build a dedicated guide to unpack the importance of client fund segregation and the steps every active trader should take.
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 segregated 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.