Security
How client money is protected
Client funds are held separately from the company’s money, and the company itself passes an independent audit every year. Here is how it works and how a brokerage account differs from a bank deposit.
Segregated accounts
Segregation means separate safekeeping: client money sits in separate accounts and legally does not belong to the company.
Client funds
A separate account at [partner bank name]. For client money only.
Company funds
Operating account: salaries, rent, taxes, development.
Off the company’s balance sheet
Client money is not the broker’s property and is not counted among its own assets.
Cannot be spent on expenses
Client funds are never used for salaries, rent, marketing or other company costs.
Out of creditors’ reach
Even if the company had debts, its creditors could not claim client money.
Daily reconciliation
Balances of segregated accounts are reconciled with client balances in the system every day.
Why a broker’s insolvency is an unlikely scenario
A classic broker earns from serving clients, not from market bets. Market rallies and crashes barely affect its stability.
Income is spread and commission
The company earns on every trade regardless of where the price goes.
No leverage
Clients trade with their own funds, so no client debts to the broker arise.
Capital requirements
A licensed broker must always hold own capital no lower than the regulator’s minimum.
Even in the worst case
Thanks to segregation, client money is not part of the company’s assets and is returned to clients.
Compensation funds: what banks and brokers have
In many countries bank deposits are insured by the state. Brokerage accounts, unfortunately, are not covered by deposit insurance: separate investor funds exist, but most of them do not cover forex and CFDs.
| Country | Bank deposits | Investors and brokers |
|---|---|---|
| USA | FDIC — up to $250,000 | SIPC — up to $500,000 (including up to $250,000 in cash). Securities only, not forex or CFDs. |
| United Kingdom | FSCS — up to £120,000 (from 1 December 2025) | FSCS — up to £85,000 for investments with FCA-authorised firms. |
| European Union | Deposit guarantee — up to €100,000 in every EU country | Investor compensation schemes — at least €20,000 (e.g. ICF in Cyprus — up to €20,000). |
| Australia | Financial Claims Scheme — up to A$250,000 per account holder per bank | CSLR — up to A$150,000, but forex and derivatives (including CFDs) are not covered. Brokers must hold derivatives client money in separate trust accounts. |
| Switzerland | esisuisse — up to CHF 100,000 | No separate fund for brokerage clients. |
| Canada | CDIC — up to C$100,000 | CIPF — up to C$1,000,000 for clients of CIRO member firms. |
| Japan | DICJ — up to ¥10 million | JIPF — up to ¥10 million for clients of registered brokers. |
| International | — | Financial Commission — up to €20,000 per complaint, for clients of member firms. |
Maximum amounts per client per institution are shown. Each fund has its own conditions — check them on the funds’ official websites.
ANTARES Dividend Builder: [state the compensation fund the company is a member of — or remove this line]
Brokerage account or bank deposit
These are different tools for different goals. An honest comparison — pros and cons.
| Bank deposit | Brokerage account | |
|---|---|---|
| Access to money | Early withdrawal loses the interest | Withdraw any time, no penalties |
| Returns | Fixed rate, often below inflation | Depends on the market, can be much higher |
| Inflation protection | Weak: rates usually lag price growth | Gold, stocks and indices have historically beaten inflation |
| Currencies and assets | One or two currencies | Currencies, gold, oil, indices, 150 US stocks |
| Earning on a fall | Impossible | Possible: a sell trade |
| Control | The bank manages the money | You make the decisions |
| Transparency | Monthly statement | Every operation is visible in the history at once |
| Safekeeping | On the bank’s balance sheet | In a segregated account, apart from company money |
| Risk | Minimal | Market risk: you can lose part of the funds |
| Insurance | State deposit insurance | No deposit insurance |
Keep your safety cushion in a bank. Capital that should grow and work on global markets belongs in a brokerage account.
Audit, capital and licence
A broker’s licence is not a one-off permit. The regulator renews it only if the company proves its reliability every year.
Annual audit
An independent auditor reviews the financial statements, client money records and segregated accounts. Without an audit opinion the licence is not renewed.
Own capital
A broker must always maintain own capital above the regulator’s minimum — from hundreds of thousands to millions of dollars depending on the country.
Regulatory reporting
The company regularly reports on capital, risks and client money. Violations lead to fines and loss of licence.
Internal control
The compliance department monitors transactions, AML rules and client data protection.
- Auditor
- [audit firm name]
- Latest audit
- [year]
- Client money bank
- [partner bank name]
- Licence
Ready to start?
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