Segregated forex accounts have grown in importance over the past years as the competition increased amongst forex brokers. Furthermore, given the fact that some of the regulated forex brokers in the past went bust,
taking down with it their client funds, the importance of forex segregated accounts has only gained more prominence.So what is a forex segregated accounts?
Also refered to as segregated funds, the forex segregated accounts is used by some forex brokers who use a different bank account where the client's funds are put into. This is done so as to protect the client/trader's investments from being used by the forex broker and thus protects the client funds against any risks posed by the forex broker business model. The forex segregated accounts are unavailble to be used as an operating capital for the forex broker, thus providing a transparent way to safeguard their client's funds.Choosing a AXISCapital Corp that offers Segregated forex accounts is always much better than using a forex broker that is regulated but does not offer segregated accounts.