Brokers With Segregated Accounts
Brokers with segregated accounts keep client funds separate from company money. This is an important safety measure which helps protects trader capital in the event a brokerage goes bankrupt. This article explains how to check if a forex broker uses segregated accounts and UK regulations. Our experts have also listed the best brokers with segregated accounts:
UK Brokers With Segregated Accounts
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Founded in Australia in 2010, Pepperstone is a highly regarded broker specialising in forex and CFDs. Serving more than 400,000 clients globally, it provides access to over 1,300 financial instruments through popular platforms like MT4, MT5, cTrader, and TradingView. Its fee structure is both low and transparent. With regulation by reputable bodies such as the FCA, ASIC, and CySEC, Pepperstone guarantees a safe trading environment for traders at every level.
Instruments Regulator Platforms CFDs, Forex, Currency Indices, Stocks, Indices, Commodities, ETFs, Crypto (only Pro clients), Spread Betting FCA, ASIC, CySEC, DFSA, CMA, BaFin, SCB MT4, MT5, cTrader, TradingView, AutoChartist, DupliTrade, Quantower Min. Deposit Min. Trade Leverage $0 0.01 Lots 1:30 (Retail), 1:500 (Pro) -
Established in Poland in 2002, XTB caters to over a million clients worldwide. This forex and CFD broker offers a robust regulatory framework, a diverse range of assets, and prioritises trader satisfaction. It provides an intuitive proprietary platform equipped with excellent tools to support aspiring traders.
Instruments Regulator Platforms CFDs on shares, Indices, ETFs, Raw Materials, Forex currencies, cryptocurrencies, Real shares, Real ETFs FCA, CySEC, KNF, DFSA, FSC xStation Min. Deposit Min. Trade Leverage $0 0.01 Lots 1:30 -
Interactive Brokers (IBKR), a leading brokerage, offers access to 150 markets across 33 countries and provides extensive investment services. With more than 40 years of experience, this Nasdaq-listed company complies with strict regulations from the SEC, FCA, CIRO, and SFC. It is among the most reliable brokers worldwide for traders.
Instruments Regulator Platforms Stocks, Options, Futures, Forex, Funds, Bonds, ETFs, Mutual Funds, CFDs, Cryptocurrencies FCA, SEC, FINRA, CFTC, CBI, CIRO, SFC, MAS, MNB, FINMA, AFM Trader Workstation (TWS), IBKR Desktop, GlobalTrader, Mobile, Client Portal, AlgoTrader, OmniTrader, TradingView, eSignal, TradingCentral, ProRealTime, Quantower Min. Deposit Min. Trade Leverage $0 $100 1:50 -
Trade Nation is a leading FX and CFD broker regulated in the UK and Australia, among other places. The company provides competitively priced fixed and variable spreads on over 1,000 assets. Traders benefit from advanced platforms and comprehensive training materials. Additionally, the Signal Centre offers valuable trade ideas.
Instruments Regulator Platforms Forex, CFDs, Indices, Shares, Commodities, Futures, Bonds, Spread Betting, Cryptos (Bahamas Entity Only) FCA, ASIC, FSCA, SCB, FSA MT4 Min. Deposit Min. Trade Leverage $0 0.1 Lots 1:500 (entity dependent) -
Eightcap, an acclaimed broker regulated by the FCA, offers exceptionally low trading costs. Recognised as the top-rated brand by TradingView's vast user base of 100 million, traders can directly access the platform. UK traders can open a live account with a minimum deposit of just £100.
Instruments Regulator Platforms CFDs, Forex, Stocks, Indices, Commodities ASIC, FCA, CySEC, SCB MT4, MT5, TradingView Min. Deposit Min. Trade Leverage £100 0.01 Lots 1:30 -
Founded in 1974, IG is a part of IG Group Holdings Plc, a publicly listed brokerage (LSE: IGG). The company provides spread betting, CFD, and forex trading, offering access to over 17,000 markets. Its platforms and investing apps are notably user-friendly. Over the past 50 years, IG has consistently been an industry leader, excelling in all essential areas for traders.
Instruments Regulator Platforms CFDs, Forex, Stocks, Indices, Commodities, ETFs, Futures, Options, Crypto, Spread Betting FCA, ASIC, NFA, CFTC, DFSA, BaFin, MAS, FSCA, FINMA, CONSOB, AFM, JFSA Web, L2 Dealer, MT4, TradingView, AutoChartist, TradingCentral, ProRealTime Min. Deposit Min. Trade Leverage $0 0.01 Lots 1:30 (Retail), 1:222 (Pro) -
eToro is a leading multi-asset platform providing trading services across numerous CFDs, stocks, and cryptocurrencies. Since its 2007 inception, it has attracted millions of traders worldwide. It operates with authorisation from top regulators such as the FCA and CySEC. Its social trading feature is especially well-regarded. Crypto investments are high-risk and possibly unsuitable for retail investors. There's a potential to lose all invested capital. Familiarise yourself with the risks. 61% of retail CFD accounts incur losses.
Instruments Regulator Platforms CFDs, Forex, Stocks, Indices, ETFs, Smart Portfolios, Commodities, Futures, Crypto, NFTs FCA, ASIC, CySEC, FSA, FSRA, MFSA, CNMV, AMF eToro Web, CopyTrader, TradingCentral Min. Deposit Min. Trade Leverage $50 $10 1:30
Pepperstone
XTB
Interactive Brokers
Trade Nation
Eightcap
IG
eToroSafety Comparison
Compare how safe the Brokers With Segregated Accounts are and what features they offer to protect traders.
| Broker | Trust Rating | FCA Regulated | Negative Balance Protection | Guaranteed Stop Loss | Segregated Accounts |
|---|---|---|---|---|---|
| Pepperstone | ✔ | ✔ | ✘ | ✔ | |
| XTB | ✔ | ✔ | ✔ | ✔ | |
| Interactive Brokers | ✔ | ✔ | ✘ | ✔ | |
| Trade Nation | ✔ | ✔ | ✘ | ✔ | |
| Eightcap | ✔ | ✔ | ✘ | ✔ | |
| IG | ✔ | ✔ | ✔ | ✔ | |
| eToro | ✔ | ✔ | ✘ | ✔ |
Payments Comparison
Compare which popular payment methods the Brokers With Segregated Accounts support and whether they have trading accounts denominated in British Pounds (GBP).
| Broker | GBP Account | Debit Card | Credit Card | Neteller | Skrill | Apple Pay |
|---|---|---|---|---|---|---|
| Pepperstone | ✔ | ✔ | ✔ | ✔ | ✔ | ✔ |
| XTB | ✔ | ✔ | ✔ | ✔ | ✔ | ✘ |
| Interactive Brokers | ✔ | ✔ | ✘ | ✘ | ✘ | ✘ |
| Trade Nation | ✔ | ✔ | ✔ | ✘ | ✔ | ✘ |
| Eightcap | ✔ | ✔ | ✔ | ✔ | ✔ | ✘ |
| IG | ✔ | ✔ | ✔ | ✘ | ✘ | ✘ |
| eToro | ✔ | ✔ | ✘ | ✔ | ✔ | ✘ |
Mobile Trading Comparison
How good are the Brokers With Segregated Accounts at mobile trading using apps or other mobile interfaces.
| Broker | Mobile Apps | iOS Rating | Android Rating | Smart Watch App |
|---|---|---|---|---|
| Pepperstone | iOS & Android | ✘ | ||
| XTB | iOS & Android | ✔ | ||
| Interactive Brokers | iOS & Android | ✔ | ||
| Trade Nation | iOS & Android | ✘ | ||
| Eightcap | iOS & Android | ✘ | ||
| IG | iOS & Android | ✔ | ||
| eToro | iOS & Android | ✘ |
Beginners Comparison
Are the Brokers With Segregated Accounts good for beginner traders, that might want an affordable setup to get started, along with good support and educational resources?
| Broker | Demo Account | Minimum Deposit | Minimum Trade | Support Rating | Education Rating |
|---|---|---|---|---|---|
| Pepperstone | ✔ | $0 | 0.01 Lots | ||
| XTB | ✔ | $0 | 0.01 Lots | ||
| Interactive Brokers | ✔ | $0 | $100 | ||
| Trade Nation | ✔ | $0 | 0.1 Lots | ||
| Eightcap | ✔ | £100 | 0.01 Lots | ||
| IG | ✔ | $0 | 0.01 Lots | ||
| eToro | ✔ | $50 | $10 |
Advanced Trading Comparison
Do the Brokers With Segregated Accounts offer features that allow for more advanced trading strategies?
| Broker | Automated Trading | Pro Account | Leverage | VPS | AI | Low Latency | Extended Hours |
|---|---|---|---|---|---|---|---|
| Pepperstone | Expert Advisors (EAs) on MetaTrader | ✔ | 1:30 (Retail), 1:500 (Pro) | ✔ | ✘ | ✔ | ✘ |
| XTB | - | ✔ | 1:30 | ✘ | ✘ | ✔ | ✘ |
| Interactive Brokers | Capitalise.ai, TWS API | ✘ | 1:50 | ✘ | ✔ | ✔ | ✔ |
| Trade Nation | Expert Advisors (EAs) on MetaTrader | ✘ | 1:500 (entity dependent) | ✘ | ✘ | ✘ | ✘ |
| Eightcap | TradingView Bots | ✘ | 1:30 | ✔ | ✘ | ✔ | ✘ |
| IG | Expert Advisors (EAs) on MetaTrader, build your own on ProRealTime | ✔ | 1:30 (Retail), 1:222 (Pro) | ✔ | ✔ | ✔ | ✔ |
| eToro | Automate your trades via CopyTrader - follow profitable traders. Open and close trades automatically when they do. | ✘ | 1:30 | ✘ | ✔ | ✘ | ✔ |
Detailed Rating Comparison
Use this heatmap to compare our detailed ratings for all of the Brokers With Segregated Accounts.
| Broker | Trust | Platforms | Mobile | Assets | Fees | Accounts | Support | Research | Education |
|---|---|---|---|---|---|---|---|---|---|
| Pepperstone | |||||||||
| XTB | |||||||||
| Interactive Brokers | |||||||||
| Trade Nation | |||||||||
| Eightcap | |||||||||
| IG | |||||||||
| eToro |
Our Take On Pepperstone
"Pepperstone is a premier trading platform, providing tight spreads, swift execution, and sophisticated charting tools for seasoned traders. Beginners benefit from no minimum deposit, comprehensive learning materials, and outstanding 24/7 support."Tobias Robinson
Reviewer
Pros
- Pepperstone offers rapid execution speeds of approximately 30ms, enabling swift order processing and execution, making it ideal for traders.
- Pepperstone presents itself as an economical choice for traders, offering spreads as low as 0.0 in its Razor account. The Active Trader programme provides rebates up to 30% on indices and commodities, plus $3 per lot on forex.
- Pepperstone now offers spread betting via TradingView, delivering a streamlined and tax-efficient trading experience with sophisticated analytical tools.
Cons
- Pepperstone's demo accounts expire after 30 days, which may not provide sufficient time to explore various platforms and evaluate trading strategies.
- Although its market range has improved, its crypto offerings remain limited compared to brokers specialising in this sector, lacking real coin investment options.
- Pepperstone doesn't offer cTrader Copy, a favoured feature for copying trades found in the cTrader platform, which is available on other platforms such as IC Markets. However, Pepperstone has launched its own user-friendly copy trading app.
Our Take On XTB
"XTB excels for novice traders with its superb xStation platform, minimal trading costs, no required deposit, and outstanding educational resources, many of which are fully integrated into the platform."William Berg
Reviewer
Pros
- XTB processes withdrawals swiftly, paying within 3 business days, subject to the method and amount.
- Top-notch customer support, available 24/5, includes a welcoming live chat with response times under two minutes during tests.
- The xStation platform stands out with its user-friendly design and intuitive tools, such as adaptable news feeds, sentiment heatmaps, and a trader calculator. These features streamline the learning process for new traders.
Cons
- The research tools at XTB are commendable but have the potential to excel further. Enhancing them with access to top-tier third-party services like Autochartist, Trading Central, and TipRanks would significantly elevate their offering.
- XTB lacks a raw spread account, a feature increasingly offered by competitors such as Pepperstone. This omission might not satisfy traders seeking the most competitive spreads.
- XTB has stopped supporting MT4, restricting traders to its own platform, xStation. This decision may discourage experienced traders accustomed to using the MetaTrader suite.
Our Take On Interactive Brokers
"Interactive Brokers ranks highly for seasoned traders due to its robust charting platforms, live data, and bespoke layouts via the new IBKR Desktop app. Its competitive pricing and sophisticated order choices appeal to traders, and its wide equity options are industry-leading."Tobias Robinson
Reviewer
Pros
- The new IBKR Desktop platform combines the top features of TWS with customised tools such as Option Lattice and MultiSort Screeners, providing an impressive trading experience for traders of all skill levels.
- A wide range of third-party research subscriptions, both free and paid, are available for traders. Additionally, by subscribing to Toggle AI, traders can receive commission rebates from IBKR.
- While initially targeting seasoned traders, IBKR has recently widened its appeal by eliminating its $10,000 minimum deposit requirement.
Cons
- The learning curve for TWS is quite steep, making it tough for novice traders to navigate and grasp all its features. In contrast, Plus500's web platform is far more accessible for those new to trading.
- You are limited to a single active session per account, meaning you cannot use both your desktop programme and mobile app at the same time. This restriction can occasionally lead to a frustrating experience for traders.
- IBKR offers a variety of research tools, but their inconsistent placement across trading platforms and the 'Account Management' webpage creates a confusing experience for users.
Our Take On Trade Nation
"Trade Nation is ideal for novice traders seeking diverse markets on an easy-to-use platform. It offers no minimum deposit, complimentary funding options, and robust educational resources."Tobias Robinson
Reviewer
Pros
- Trade Nation, a highly regarded and well-regulated broker, was formerly known as Core Spreads.
- Beginners benefit from a modest initial deposit.
- A variety of trading platforms and apps, such as MT4, make the brand suitable for experienced traders.
Cons
- Reduced legal safeguards with an offshore entity.
Our Take On Eightcap
"Eightcap excels for traders, offering diverse charting platforms, educational Labs, and AI tools. With over 120 crypto CFDs, it stands out in crypto trading and has won our 'Best Crypto Broker' award twice consecutively."William Berg
Reviewer
Pros
- In 2026, Eightcap integrated TradeLocker, distinguishing itself as the premier regulated broker for TradeLocker. It continues to offer ultra-fast execution and competitive fees for active traders on the charting platform.
- Eightcap excels with a suite of advanced trading tools, such as MT4 and MT5, and has recently joined the 100-million-user social trading network, TradingView.
- In 2021, Eightcap enhanced its lineup, now providing an extensive range of cryptocurrency CFDs. It offers crypto/fiat and crypto/crypto pairs, along with crypto indices for comprehensive market exposure.
Cons
- Eightcap must enhance its range of over 800 instruments to rival top competitors like Blackbull Markets, which offers 26,000+ assets, especially improving its limited commodities selection.
- Despite a helpful array of educational guides and e-books in Labs, Eightcap lags behind IG's extensive resources for aspiring traders. IG boasts a dedicated Academy app and features 18 diverse course categories.
- Despite the growing range of tools available, Eightcap lacks popular industry resources such as Autochartist and Trading Central. These provide advanced charting analytics, live news, and essential market insights for traders focused on short-term strategies.
Our Take On IG
"IG offers a complete package: an easy-to-use web platform, top-tier beginner education, enhanced charting via TradingView, up-to-date data, and strong trade execution for seasoned traders."Tobias Robinson
Reviewer
Pros
- The IG app provides an excellent mobile trading experience with an intuitive design, earning it the Runner Up position in our 'Best Trading App' award.
- The web-based platform supports traders at every level, offering advanced charting tools and real-time market data vital for trading. Additionally, IG now includes TradingView integration.
- IG excels with its diverse instruments, offering stocks, forex, indices, commodities, and cryptocurrencies. Additionally, it provides US-listed futures, options, and an AI Index, ensuring varied diversification opportunities.
Cons
- Based on tests, stock and CFD spreads remain less competitive than the lowest-cost brokers, such as CMC Markets.
- IG has ended its swap-free account, diminishing its attractiveness to Islamic traders.
- In the UK and EU, negative balance protection is available. However, US clients lack account protection and guaranteed stop losses.
Our Take On eToro
"eToro's social trading platform excels with its outstanding user experience and lively community chat, aiding beginners in spotting opportunities. It offers competitive fees on numerous CFDs and real stocks, alongside exceptional rewards for seasoned strategists."Tobias Robinson
Reviewer
Pros
- The trading app provides a top-tier social environment featuring an engaging feed and community chat, which we enjoy using.
- The entry requirements for eToro Club have been reduced. For $4.99 monthly, members enjoy 18 benefits, including a debit card that converts purchases into stocks with a 4% share return.
- The web platform and mobile app receive higher user reviews and app rankings compared to leading competitors like AvaTrade.
Cons
- The absence of extra charting platforms such as MT4 may deter experienced traders who rely on external software.
- There are no assured stop-loss orders, which could be a valuable risk management tool for novice traders.
- The minimum withdrawal is set at $30, accompanied by a $5 fee. This may impact traders with limited funds, particularly those just starting out.
What Are Brokers With Segregated Accounts?
Brokers with segregated accounts hold the firm’s working capital separate from their client’s investment money.
By holding customer funds in segregated bank accounts, the firm is not able to use client money to settle asset and liability transactions in the case of business failure. They essentially provide an additional layer of security so that the firm will not misuse client funds.
Often money is held with a custodian, such as a bank or financial institution. These funds can be easily controlled, managed, and identified if a broker goes into bankruptcy or financial takeover.
UK Regulations
The segregated account has been added as a stipulation by many financial watchdogs worldwide. The Financial Conduct Authority (FCA) specifies a separate rule under its Client Assets Sourcebook. This identifies the segregation methodology for brokers to follow, plus an acknowledgement of trust and reconciliation requirements.
The FCA states that “a firm, on receiving any client money, must promptly place this money into one or more accounts opened with any of the following profiles; a central bank, a CRD credit institution, a bank authorised in a third country or a qualifying money market fund.”
AFX Markets went into administration in 2019 under the FCA’s Special Administration Regime (SAR). This was created by the UK government in 2011 to deal with issues of the failure to comply with FCA regulatory rules of customer fund holding. Clients were entitled to claim with the FSCS if they were registered customers of AFX Markets Ltd. This included access to compensation up to £85,000 per person.
Unregistered Brokers
Forex brokers with non-segregated cash accounts may not provide adequate financial safeguarding to traders. Unregulated brokers or those registered with more lenient offshore watchdogs, may not separate customer money from their own.
This is particularly common with binary options brokers, operating with limited government or third-party oversight. Some firms have terms dictating that they own their investors’ money once it had been deposited, meaning these funds could be used for day-to-day business operations.
Benefits Of Brokers With Segregated Accounts
- Peace of mind knowing that the broker-dealer or registered custodian is unable to complete fraudulent or risky operations with trader funds
- Segregated bank accounts are legally separated from the firm’s assets, meaning the forex broker cannot use the stored funds to conduct business operations
- Brokers with segregated accounts must maintain a record of all transactions performed through the account
- Online brokers are required to allow clients, the beneficiary, constant access to their money as and when required
How Do I Know If My Broker Uses Segregated Accounts?
Typically, a broker-dealer will publish this information on their regulation and safety web pages. For example, CMC Markets has details of its segregated account under its ‘Regulations’ page.
The firm states that it holds client funds in segregated bank accounts with UK institutions, such as NatWest, Barclays, and Lloyds. Their client money controls and processes are also audited annually by PricewaterhouseCoopers, with results reported to the FCA.
Tip: you can check that a broker’s FCA license is legitimate by searching for the company name or registration number on the watchdog’s official website.
Segregated Accounts Vs Separate Accounts
A separate account is an investment profile, typically opened through an online broker but managed by a financial advisor. Often there are minimum investment requirements to register for a separate account, sometimes in the region of £50,000+, plus annual management fees averaging 1-5% of the portfolio value.
A segregated account is used to store and operate client money separately from the working capital of the trading broker. They are a safety measure employed by the best UK brokers.
How To Compare Brokers That Offer Segregated Accounts
It is not uncommon to find UK brokers with segregated accounts, particularly given the rules of the FCA. The increased choice means you can be more selective when choosing a brokerage. Consider the following when comparing brokers with segregated accounts:
- Fees – Does the broker have a transparent fee structure? Are the commission charges and spreads competitive? Brokers with low fees should be favoured, though this should not come at the detriment of access to appropriate trading tools and additional features. City Index, for example, offers zero commission forex and CFD trading except for equity CFDs. UK equities will incur a 0.08% fee with a minimum commission of £10.
- Customer Support – Access to a responsive and reliable customer support team is helpful, especially when it comes to financial safeguarding. The best brokers with segregated accounts offer 24/5 or 24/7 customer support through various methods. It is important to be able to speak to a human advisor for money-holding concerns, as well as for trading queries and platform guidance.
- Regulation – Regulatory status is typically a good indicator of financial safeguarding. Brokers with oversight from top-tier authorisations such as the FCA must comply with relevant stipulations. In addition to segregated funds, access to compensation schemes and negative balance protection are important measures.
- Assets – Another consideration when comparing brokers with individual segregated accounts is the range of investment products and margin trading available. This may include stocks, forex, commodities, or cryptocurrency. Interactive Brokers, for example, provides thousands of tradeable products on more than 150 exchanges.
- Deposit & Withdrawal Methods – The best online brokers with segregated accounts accept several payment methods to deposit and withdraw from an account. This may include credit/debit cards, bank wire transfers, and e-wallet providers such as PayPal and Neteller. Also look at minimum deposits (under £200 is good) and payment timelines (the top providers process deposits instantly and withdrawals within five working days).
Bottom Line On Brokers With Segregated Accounts
Using a forex broker with a segregated asset account for client money is sensible. The peace of mind and assurance that your funds are held apart from business money in the case of failure or insolvency is important. It is a promising sign that the brokerage is legitimate and trustworthy.
Use our ranking of the best brokers with segregated accounts to start trading.
FAQ
Are Segregated Brokerage Accounts Safe?
Brokers with segregated accounts are normally safer than non-segregated accounts. Money held separately cannot be used to settle business shortcomings and funds can be controlled by a third party if a broker goes into bankruptcy.
What Is A Segregated Bank Account For Trading?
Segregated trading accounts are profiles in which customer money is held separately from the funds of a broker-dealer. The single account is created by the brokerage to accommodate all of its traders’ funds collectively. Importantly, the segregated money is out of the broker’s reach should they go under.
Are Segregated Brokerage Accounts Insured?
The best forex and CFD brokers with segregated accounts also provide monetary insurance. FCA-regulated financial institutions, for example, must hold their client funds with a registered bank or financial firm. These should provide suitable custodian insurance as an additional protection measure.
Which UK Brokers Offer Segregated Trading Accounts?
Among the top UK brokers with segregated accounts are CMC Markets, FXCC, and Eightcap. Alternatively, see our full list of the largest brokerage firms with segregated accounts.