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Client money segregation

Client money segregation means a regulated firm keeps qualifying customer funds separate from its own operating money under applicable rules.

How it works

The exact protections depend on the jurisdiction, legal entity and account structure. Segregation can reduce misuse risk but does not make all insolvency outcomes identical.

What to check

Check the regulator's rules and the broker's client-money disclosure. Look for the legal entity holding the account and any exclusions for particular products or customer categories.

  • Verify the entity and jurisdiction
  • Read client-money terms
  • Separate segregation from compensation schemes

Limits and risks

Segregation is an operational safeguard, not a guarantee against market loss or every form of firm failure. Compensation arrangements, if any, are separate.

Primary sources

BIS 2025 Triennial Central Bank Survey↗FCA: Contracts for difference (CFDs)↗

General information only. Investment products can lose value, and terms, fees and regulation can change.