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
-
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 -
FXCC, a well-established brokerage since 2010, offers cost-effective online trading. Registered in Nevis and regulated by CySEC, it is distinguished by its ECN conditions and absence of a minimum deposit requirement. The account opening process is efficient, taking under five minutes.
Instruments Regulator Platforms CFDs, Forex, Indices, Commodities, Crypto CySEC MT4, MT5 Min. Deposit Min. Trade Leverage $0 0.01 Lots 1:500 -
IC Markets is an internationally acclaimed forex and CFD broker, admired for its competitive pricing, diverse trading instruments, and superior technology. Established in 2007 and based in Australia, the firm is under the regulation of ASIC, CySEC, and FSA. It has successfully drawn over 180,000 clients from more than 200 nations.
Instruments Regulator Platforms CFDs, Forex, Stocks, Indices, Commodities, Bonds, Futures, Crypto ASIC, CySEC, FSA, CMA MT4, MT5, cTrader, TradingView, TradingCentral, DupliTrade, Quantower Min. Deposit Min. Trade Leverage $200 0.01 Lots 1:30 (ASIC & CySEC), 1:500 (FSA), 1:1000 (Global) -
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 -
IC Trading belongs to the reputable IC Markets group. Designed for dedicated traders, it offers highly competitive spreads, dependable order execution, and sophisticated trading tools. However, it operates from Mauritius, an offshore financial centre, allowing high leverage but within a less regulated environment.
Instruments Regulator Platforms CFDs, Forex, Stocks, Indices, Commodities, Bonds, Cryptos, Futures FSC MT4, MT5, cTrader, AutoChartist, TradingCentral Min. Deposit Min. Trade Leverage $200 0.01 Lots 1:500 -
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)
Pepperstone
XTB
FXCC
IC Markets
Interactive Brokers
IC Trading
Trade NationSafety 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 | ✔ | ✔ | ✔ | ✔ | |
| FXCC | ✘ | ✔ | ✘ | ✔ | |
| IC Markets | ✘ | ✔ | ✘ | ✔ | |
| Interactive Brokers | ✔ | ✔ | ✘ | ✔ | |
| IC Trading | ✘ | ✘ | ✘ | ✔ | |
| Trade Nation | ✔ | ✔ | ✘ | ✔ |
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 | ✔ | ✔ | ✔ | ✔ | ✔ | ✘ |
| FXCC | ✔ | ✔ | ✔ | ✔ | ✔ | ✘ |
| IC Markets | ✔ | ✘ | ✔ | ✔ | ✔ | ✘ |
| Interactive Brokers | ✔ | ✔ | ✘ | ✘ | ✘ | ✘ |
| IC Trading | ✔ | ✔ | ✔ | ✔ | ✘ | ✘ |
| Trade Nation | ✔ | ✔ | ✔ | ✘ | ✔ | ✘ |
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 | ✔ | ||
| FXCC | iOS & Android | ✘ | ||
| IC Markets | iOS & Android | ✘ | ||
| Interactive Brokers | iOS & Android | ✔ | ||
| IC Trading | iOS & Android | ✘ | ||
| Trade Nation | 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 | ||
| FXCC | ✔ | $0 | 0.01 Lots | ||
| IC Markets | ✔ | $200 | 0.01 Lots | ||
| Interactive Brokers | ✔ | $0 | $100 | ||
| IC Trading | ✔ | $200 | 0.01 Lots | ||
| Trade Nation | ✔ | $0 | 0.1 Lots |
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 | ✘ | ✘ | ✔ | ✘ |
| FXCC | Expert Advisors (EAs) on MetaTrader | ✘ | 1:500 | ✔ | ✘ | ✔ | ✘ |
| IC Markets | Expert Advisors (EAs) on MetaTrader, cBots on cTrader, Myfxbook AutoTrade | ✘ | 1:30 (ASIC & CySEC), 1:500 (FSA), 1:1000 (Global) | ✔ | ✘ | ✔ | ✘ |
| Interactive Brokers | Capitalise.ai, TWS API | ✘ | 1:50 | ✘ | ✔ | ✔ | ✔ |
| IC Trading | Expert Advisors (EAs) on MetaTrader, cBots on cTrader | ✘ | 1:500 | ✔ | ✘ | ✔ | ✘ |
| Trade Nation | Expert Advisors (EAs) on MetaTrader | ✘ | 1:500 (entity dependent) | ✘ | ✘ | ✘ | ✘ |
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 | |||||||||
| FXCC | |||||||||
| IC Markets | |||||||||
| Interactive Brokers | |||||||||
| IC Trading | |||||||||
| Trade Nation |
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.
- In recent years, Pepperstone has significantly enhanced the deposit and withdrawal process. By 2025, clients can use Apple Pay and Google Pay, while 2024 saw the introduction of PIX and SPEI for customers in Brazil and Mexico.
- Over the years, Pepperstone has consistently garnered recognition from DayTrading.com’s annual awards. Recently, it was honoured as the 'Best Overall Broker' in 2025 and was the 'Best Forex Broker' runner-up the same year.
Cons
- 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.
- Pepperstone's demo accounts expire after 30 days, which may not provide sufficient time to explore various platforms and evaluate trading strategies.
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
- Top-notch customer support, available 24/5, includes a welcoming live chat with response times under two minutes during tests.
- XTB processes withdrawals swiftly, paying within 3 business days, subject to the method and amount.
- XTB offers over 10,000 instruments, including CFDs on shares, indices, ETFs, raw materials, forex, crypto, real shares, real ETFs, share dealing, and investment plans. This range serves both short-term traders and long-term investors.
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 has stopped supporting MT4, restricting traders to its own platform, xStation. This decision may discourage experienced traders accustomed to using the MetaTrader suite.
- The demo account lasts only four weeks, posing a challenge for traders wanting to fully explore the xStation platform and refine short-term strategies before investing actual money.
Our Take On FXCC
"FXCC remains a top choice for forex traders, offering over 70 currency pairs, very tight spreads from 0.0 pips in tests, and high leverage up to 1:500 with the ECN XL account."
Pros
- There are no limitations on short-term trading techniques such as trading and scalping.
- The complimentary education section, featuring the 'Traders Corner' blog, provides a wide array of resources suitable for traders of all experience levels.
- FXCC offers competitive and transparent ECN spreads starting from 0.0 pips, with no commissions. This makes it one of the most cost-effective forex brokers available.
Cons
- The range of research tools, such as Trading Central and Autochartist, is quite limited. Leading platforms in this category, like IG, offer more advanced features.
- While the MetaTrader suite excels in technical analysis, its outdated design detracts from the overall trading experience, particularly when contrasted with contemporary platforms such as TradingView.
- Unaware traders might face steep withdrawal fees, such as a notable $45 for bank transfers.
Our Take On IC Markets
"IC Markets provides excellent pricing, swift execution, and easy deposits. With cutting-edge charting tools like TradingView and the Raw Trader Plus account, it continues to be a preferred option for intermediate and advanced traders."
Pros
- As a well-regulated and reputable broker, IC Markets focuses on client safety and transparency to provide a dependable global trading experience.
- Access over 2,250 CFDs across diverse markets like forex, commodities, indices, shares, bonds, and cryptocurrencies. This variety enables traders to employ diversified strategies.
- IC Markets provides reliable 24/5 support, especially for account and funding queries, drawing from direct experience.
Cons
- The tutorials, webinars, and educational resources require enhancement, lagging behind competitors such as CMC Markets, which diminishes their appeal to novice traders.
- IC Markets provides metals and cryptocurrencies for trading through CFDs, though the selection is narrower compared to brokers such as eToro. This limits opportunities for traders focused on these asset classes.
- Certain withdrawal methods incur fees, including a $20 charge for wire transfers. These costs can reduce profits, particularly with frequent withdrawals.
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."
Pros
- 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.
- Interactive Brokers has introduced ForecastTrader, an innovative product offering zero-commission trading with yes/no Forecast Contracts on political, economic, and climate events. It features fixed $1 contract payouts, 24/6 market access, and a 3.83% APY on positions held.
Cons
- 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.
- 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.
- Support can be sluggish and frustrating. Tests reveal that you may face challenges reaching customer service quickly, which could result in delays in issue resolution.
Our Take On IC Trading
"IC Trading offers an ideal environment, featuring top-tier execution speeds of around 40 milliseconds, extensive liquidity, and advanced charting tools, perfect for scalpers, traders, and algorithmic traders."
Christian Harris
Reviewer
Pros
- IC Trading offers top-tier spreads, with some major currency pairs like EUR/USD featuring spreads as low as 0.0 pips, making it an excellent choice for traders.
- The streamlined digital account setup allows traders to commence trading swiftly, eliminating lengthy paperwork. Testing shows the process takes mere minutes.
- Trading Central and Autochartist provide valuable technical analysis and actionable ideas. These tools are readily available within the account area or on the cTrader platform.
Cons
- Although IC Trading operates under the reputable IC Markets group, it is licensed by the FSC in Mauritius, a regulator known for its limited financial transparency and lack of robust safeguards.
- Customer support was inadequate during testing, with multiple live chat attempts going unanswered and emails ignored. This raises significant concerns regarding their capacity to manage urgent trading issues.
- The educational materials require significant enhancement unless accessed via the IC Markets website. This limitation is particularly disadvantageous for beginners seeking a thorough learning experience, especially when compared to industry leaders such as eToro.
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."
Pros
- A variety of trading platforms and apps, such as MT4, make the brand suitable for experienced traders.
- Beginners benefit from a modest initial deposit.
- Access a comprehensive selection of investments through leveraged CFDs, enabling both long and short strategies.
Cons
- Reduced legal safeguards with an offshore entity.
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.