Do brokers cover any kind of security on accounts/monetary amounts?
They’re not banks and do not have the same security measures…just username and password.
Whilst I use a secure and strong password, I don’t know if they monitor anything like this.
However, they make it more difficult to withdraw money from the account so I guess noone could get their hands on it, just destroy your account 
If you want absolute security, take a large chunk of your trading capital, ie. 80% and deposit it at a bank. Then 80% of your money is secured by the gov’t, and you’ll likely be earning a reasonable rate of return on your deposit. Some brokers will give you a return on your deposit, but I would say most don’t.
This also makes the process of withdrawing profits as easy as going to the bank and making a withdrawal. Just make adjustments to your trading account if it shrinks too low or grows too large.
I agree with Akeakamai. If you have a large account balance then don’t let the broker hold on to all of it. Keep enough in your account to cover the worst losing streak you’ve ever had plus one extra trade for safety. Then put the rest in the bank!
And your broker should have more security on withdrawals than your username and password. It’s true that someone could destroy your account with bad trades, but with my broker withdraws are sent by check to me at my house. That can’t be changed online, so all someone could do is have my own money sent to me.
On a related topic:
You Brits have a huge advantage over us, here in the U.S. The money in your account is insured by the Financial Services Authority, in the event of broker insolvency, embezzlement, etc.
In the U.S., customer funds are “commingled” as they say, in one pot containing the broker’s own money and the money of all their customers. In the event of broker bankruptcy here, customers are treated as unsecured creditors of the bankrupt broker. As such they get in line with everyone else (including the janitorial service that cleaned the broker’s offices and didn’t get paid), hoping for a settlement in Bankruptcy Court of a few cents on the dollar.
That, plus the ability to trade tax-free in Britain, makes me think maybe I should pull up stakes, and head for Merry Olde England.
Clint
You can only trade tax free if you have another source of main income, ie if trading is not your main income
FSA cover up to about �40k.
I can’t really see why anyone would want to hack your account and make bad trades but you never know
The points above are good and I guess usual password security rules etc.
Thanks. I didn’t know that.
Having said that a good accountant could work this in your favour depending on what other income you had, eg house rental, part time job, etc. And it’s only spread betting that is tax free. Spot forex is taxed
For taxes maybe so
If you just want the segregated account protection then open a regular spot forex account through an FSA regulated broker. A lot of traders are migrating there already due to changes in hedging and upcoming FIFO rules by the NFA.
FXCM UK accepts US residents, and I’m sure other brokers are looking into a UK office to do the same.
I think the same akeakamai, don�t put all your eggs in one basket, so to speak�
I haven�t had any problems with withdraws so far, but that is what I was most worry about when I first started. My broker will become a bank in the next few months and that is such a relief, knowing that the money will be between me and acm is a relief!
But I think I�m still going to have my money separated, at least at the begging, just in case�
Yes, I know FXCM well. I trade live with them, here in the U.S. They even seem to be [I]encouraging[/I] their U.S. customers to switch to FXCM (UK). I’ve had an FXCM (UK) MT4 demo account since they first started offering MT4.
As for segregated customer funds, I’m guessing that will be the next major project of the NFA and CFTC, here in the U.S. (now that the capitalization issue has been addressed).
My prediction: in two years, U.S. retail forex customers will all have segregated accounts, and that will be a good thing.
As for taxes, U.S. citizens are just plain screwed — we, and our children and grandchildren, have Marxism-Obamaism to pay for. (I’d rather have Michael Jackson back, and be rid of Obama.)
Clint
I agree, the market will be all the better for it.
Here in Australia, with GFT, my funds went straight into one of our 4 major banks!!
It is the same bank that I use myself so the money just went across the table!!
Does Aussie GFT pay interest on your deposits? Because my USA GFT doesn’t. So even if it’s secure, that’s a lost rate of return on my cash 
Bump!
Given the collapse of Sonray here in Australia, taking their customers’ funds into unsecured creditor-land, I thought it would be a good idea to revisit this issue.
I just checked the PDS for GFT and they say;
In the unlikely event that there is a deficit in any segregated trust account and GFT becomes insolvent, you must be aware that you could then become an unsecured creditor of GFT in relation to the balance of the moneys owing to you.
Sorry Tymen. If GFT go under, you’re screwed like the poor Sonray traders.
I use Go Markets in Aus. and they say pretty much the same thing.
Are there any brokers in Australia that do have secured client funds???
You could just trade with a bank like MIG, Dukascopy or CitiBank to name a few.
Dukascopy is a great broker.
It’s a trading account, what do you expect?!
If you were running a fund, you could choose to invest your cash or not.
When I signed up with GFT I was scared by this as well…but I am quite confident, because they are a very large company…
Do Aus not have an agency for protecting funds like the FSA do in the UK or the SEC do in the US?
FSAK protect up to £50k.
Think the US is massive like a few hundred thousand or mill.
I need to research it more. GFT being a U.S company is governed by U.S law…but it gets a bit blurred when the account is held with GFT Aust.