Fully Segregated Funds
For qualified counterparties, Marketsforu, in conjunction with Various Banks, offer a secure client funds solution through a custodial, or tripartite, bank account.
In this arrangement, a new custody account is opened with our Banks and maintained by the client. The account is operated under a tripartite agreement between the client, the custody bank and Marketsforu.
Under the terms of the agreement, Marketsforu is permitted to credit or debit the account for trading gains or losses. This is done within 24 hours from the close of the trading day.
All client equity is secure and fully segregated at all times, and the client funds are not co-mingled with Marketsforu’ funds or those of any other client.
When you invest in a segregated fund, your money is pooled with the money of the other people who have invested in that segregated fund. The fund manager of the underlying fund will strategically buy and sell a variety of investments, such as stocks and bonds.
The segregated accounts that many reliable Forex brokers offer are actually separate accounts for the clients and the company funds. This practically means that the broker controls but cannot use the traders’ money to further invest or cover any ongoing expenses. This means that the traders’ funds are well-protected and that all traders have a sort of a guarantee on them. However, this is not a 100% protection as in the case of bankruptcy the clients would receive refunds according to the regulations under which the broker operates.
Segregated accounts for the trader and the company balances provide safety and further prove the reliability and transparency a Forex broker offers. While it is obvious this does not provide definite and 100% protection it surely provides the clients something to hold for if everything starts going wrong, as the refunds are done according to the regulations from the current capital. The traders will thus have guaranty that their funds are not used by the broker, and that they will not be used to cover any expenses or creditors if the company applies for bankruptcy. There are two types of segregated accounts – while most of the Forex brokers offering them will have one client funds account, some have gone a step further to provide completely separate accounts for big traders. This further provides transparency and ease of access for the customers, with banks giving reviews and actual proof the money is there.