Best Forex Brokers for Segregated Accounts
At InvestinGoal, we adhere to strict standards to ensure an unbiased review process. We conduct our reviews by examining each broker’s offering and performance across 4 key categories. A final rating is produced for each forex broker based on a total of 187 data points. Learn more about our review process and methodology.
Whether you are looking for your first broker or a new one, the best place you can start to look is our listing of best forex brokers where you find very trustworthy selections.
One of the key criteria is security. In that way, forex brokers segregated accounts keep you very safe as a trader. Here we will explain exactly why that is and also take a closer look at some of the best forex brokers around the industry offering segregated accounts so you can make the best possible choice.
Let’s get started.
Table of contents
Best Forex Brokers for Segregated Accounts for 2022
Here is a closer look at each of the brokers we have chosen as the best for segregated accounts.
Our first selection is XM. They are known and regulated around the world with top-tier oversight in place from CySEC, ASIC, DFSA, and the IFSC. Here you will also find an unlimited demo account you can try. When you are ready for live trading, the minimum deposit starts at only $5.
Trading costs at XM are also kept as low as possible. Spreads start from 0 pips and you will have a choice of more than 1,000 assets to trade through the MT4 and MT5 trading platforms. The broker has a great reputation in particular for an excellent Islamic account, and their educational offering. Importantly with XM, segregated accounts and negative balance protection are available worldwide.
FXTM is another global name with excellent regulation in place from CySEC, FCA, FSCA, and the FSC. They too offer an unlimited demo account perfect for getting to know the broker before live trading. When you are ready, the minimum deposit is very accessible at only $10.
FXTM spreads also start at a very low point from 0 pips and you will have access to more than 250 assets in total for trading through the MT4, MT5, and FXTM Trader platforms which are all well-respected by traders. Furthermore, if you are a trader outside the EU and UK, the broker caters to real stock trading. They also provide segregated accounts with top-tier institutions and negative balance protection as standard around the world.
FBS is next as one of our top choices for segregated accounts in the industry. They have ideal regulation in place from CySEC, ASIC, IFSC, and the FSCA for worldwide protection while also providing segregated accounts and negative balance protection to all traders. Their demo account is available for a 90-day period and the minimum deposit starts from just $1.
You will be able to trade more than 100 assets in total through MT4, MT5, FBS Trader, and FBS CopyTrading platforms depending on your need and location. Spreads on these assets can start from negative numbers at -1 pip and the broker even offers truly fixed spreads on some assets making them very popular with scalpers and others alike.
Naga Markets is the next popular broker choice to feature. They are very comprehensively regulated by both CySEC and the SV regulatory body and provide the use of segregated accounts and negative balance protection worldwide to all traders. The broker offers an unlimited demo account and you will find a $0 minimum deposit.
You have the ability to trade in more than 500 assets with Naga Markets and the spread starts from a low 1 pip with access to top trading platforms including MT4, MT5, NAGA Web Trader, and NAGA Mobile for all your trading needs. The broker is also extremely well-known for crypto trading and even offers their own proprietary cryptocurrency as well as many others to choose from.
FXCM is another of the best-known names in the industry and one of our top selections for brokers offering segregated accounts which they do for all traders under all of their entities worldwide. They are regulated globally by the FCA, ASIC, and FSCA and offer a completely unlimited demo account to start with. Their minimum deposit starts at $50 for non-EU, UK traders.
Once trading at FXCM you will notice their spread starts from 1.3 pips or 0.2 pips if you qualify for their active trader program. You will have more than 100 assets to trade in and have access to top trading platforms including MT4, and FXCM Trading Station which is the broker’s own easy-to-use platform and a popular choice with traders.
AvaTrade is a top Irish-founded broker and our next to feature as one of the most trusted who provide segregated accounts and negative balance protection regardless of whether the local regulation requires it or not. They are regulated by ASIC, FSCA, Central Bank of Ireland (CBI), FSA, FFAJ, and BVI with an extendable 21-day demo account available. For live trading, the minimum deposit here is $100.
Spreads at AvaTrade start from 0.9 pips and the spreads offered are fixed only with the broker being one of only a few top choices to offer fixed only spreads. You will be able to trade more than 200 assets through a number of great platforms including MT4, MT5, AvaTradeGO AvaOptions, and AvaSocial depending on your trading needs and preferences.
easyMarkets is another broker well-known around the world. They are regulated by many top bodies including CySEC, ASIC, FSA, and BVI with the broker continuing to offer segregated accounts and negative balance protection. They have an unlimited demo account available and the minimum deposit is very accessible at only $25.
When it comes to trading, fixed only spreads from 1 pip are offered and you will have a range of more than 200 assets to trade across a number of markets through platforms including MT4, Vanilla Options Trading, and the easyMarkets App for trading on the move. The broker also has a number of unique trading features popular with many such as their “Freeze Rate” and “Deal Cancellation” options. This makes them not only a safe choice but also a flexible broker for many.
HotForex is one of the safest and best-regulated broker choices you can make. They have regulation in place from CySEC, FCA, DFCA, FSCA, FSC, FSA, and SV regulatory bodies, with segregated accounts and negative balance protection in use no matter where you are trading. You will also find an unlimited demo account and a very welcoming $5 minimum deposit to get started.
Spreads when trading with HotForex are very low. These start from 0 pips depending on the assets and account type you are trading under. You will have more than 100 assets in total to choose from and trading platforms like MT4, MT5, and HF Copy at your disposal with the vast regulation and security provided being one of the most popular aspects of this broker.
Another broker with extensive regulation in place around the world is XTB. They are regulated by CySEC, KNF, FCA, IFSC, DFSA, and the FSCA. The demo account you will find here is available for a 30-day period and there is no minimum deposit required to get started in live trading.
The spreads at XTB represent great value too. These start from 0 pips and you can trade in a huge number of assets, more than 5,200 in total. Trading is all done through the intuitive and popular xStation trading platform with the broker very appealing to European traders in particular though they do provide segregated accounts and negative balance protection throughout.
The final broker on our listing is FP Markets. They are regulated by CySEC, ASIC, and the SV regulatory bodies and provide segregated accounts and negative balance protection across each of these areas to traders. The FP Markets demo account is unlimited and their minimum deposit starts at only $100.
Spreads from the broker are very competitive too. These start from 0 pips and you will have access to a huge catalog of more than 10,000 assets to trade. Trading is done through MT4, MT5, and IRESS Trading (Australia only) with the broker being particularly well known for stockbroking and popular among many stock traders for this.
What is a Segregated Bank Account and why you should use it
A segregated bank account for a client is one in which your funds are held completely separate from those of the broker. These accounts are also different from the brokers’ accounts so your funds can only be used for trading purposes as directed by you.
These accounts are highly secure as they can’t be accessed by the broker for direct use by them in any circumstances. This is a key reason why it is very important and a big security positive feature if a broker provides segregated accounts.
Regulatory requirements for funds’ security
With some top regulators including the FCA, ASIC, and ESMA regulated brokers, it is mandatory that segregated accounts are used. This means in the unlikely event of a broker’s bankruptcy, the trader may be able to recover their money if it is held in a segregated bank account. It also helps to protect against fraud and misuse.
Another requirement of these regulators is that negative balance protection is in place. This means you can’t lose more than you deposit with a broker and safeguards many traders, particularly those new to trading.
Overall, it is highly advisable that you choose the best-regulated broker possible, with features like this in place to protect you as a trader.
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