I have $2000 in my forex trading account at present.
I have nearly $3k. I speculate with minilots since I am a noobee in the Forex arena. 
if you have $100k or $250k, you don’t deposit it with the broker. you deposit it into a custodial bank which hopefully is insured the same way as BoA / WF / etc, and your broker connects to your bank account to verify / settle / add / remove the funds after your daily trades.
Interactive Brokers also offers FDIC insurance as well as private insurance up to $2 Million in cash.
it is sensible not put all your trading capital with your brokers, regardless of reputation.
crazy times right now.
Your frustration is understandable. But there is a way to change things for the better. I’d encourage you to contact the CFTC (I’ll add a link once I hit 5 posts) and leave a public comment asking for greater protections for retail forex customers. A variety of ideas are being considered by CFTC (Insurance, greater disclosure requirements, etc…) that could make a big difference for retail forex traders.
I am trading with 3 brokers, all not more than 20k, so i guess i have no worries about them eating up my money, hehe
I simply put a sensible amount with my broker, enough to cover trades, then have my principal fund with a bank, and I trade 1% of the combined total per trade. So I am risking a lot more than 1% of what is deposited with my broker (who might think me mad!) but just 1% of my overall account.
I spread my trading among 3 Forex Brokers. Mainly for spread reasons.
If one broker is getting way out of hand in the spread, then I can place the trade with one of the other 2 Brokers.
This also is some protection in the event a Broker goes bust.
sounds like a plan. 
I hope their actions will bear fruit in the near future.
Two new developments in the last few days indicate that regulators are trying to get out in front of the safety of funds crisis that has gripped the futures/forex industry. However, these reforms may not extend to the retail forex market.
On Friday the National Futures Association approved a new rule requiring all Futures Commission Merchants to grant real-time, online access to FCM bank accounts. This rule is in response to Russ Wasendorf’s bank statement forgeries which had fooled regulators for 20 years. The language specifically references FCM’s and we are currently checking to see if Retail Foreign Exchange Dealers (RFEDs) will have to comply with the rule as well. FXCM’s position is that RFEDs need to be more transparent, which is why we also support a rule requiring all FCMs/RFEDs to fully disclosure their financials to the trading public.
The second development came last Thursday at a meeting in Chicago, as reported by the WSJ, in which the CME was reportedly “softening” its opposition to an insurance fund for futures traders. Again, however, no mention of extending such protections to retail forex traders was made.
Futures Industry Leaders Discuss Insurance Fund - WSJ.com
While both of these development are positive, the negative aspect to them is that retail forex may very well be over looked. This is why we are strongly encouraging the trading public to contact the CFTC and leave comments about the need to further protect retail forex traders. Traders can leave comments using the link below:
http://comments.cftc.gov/PublicComments/CommentForm.aspx?id=1250
Aside from the above, make sure your money is kept in trust for you by the bank that the broker uses. This way you get the money you are entitled to whatever happens to the broker. And if the bank goes bust any deposit protection scheme will then apply.
There must be many retail traders with $million accounts, just like there are businesses with $million bank accounts. Money has to sit somewhere some of the time and hopefully in one of these: WORLD’S 50 SAFEST BANKS 2012 | Global Finance
I have over 200k in my trading account and am quite happy with it being there. I use a broker that has been in business for many years and is listed on the London Stock Exchange and has its accounts fully audited.
just out of curiosity… are you profitable trader ?
how many years?
are you familiar with Lehman Brothers?
PFGbest?
are you aware of what happened to them?
you still need to be on guard in these crazy times.
Hi, I have some $40000 in my 2 accounts and i earn it in 2.5 years with starting balance of $5000 only. I know few traders who are trading on $1M account. I use to take risk not more than 6% of my account and always wait for my point to open the trades, after careful analysis. This is market for those who give the respect to it by learning good strategies and in timely market movement.
I got 17500 eur on trading account and my risk is max 0.8% per trade 140 eur no less no more and I am only trading cable
Just over 7K USD with my broker, most of it is now [I]earned[/I] equity. They are well capitalized, but I am considering opening another account when the time comes, but not before I am completely liquid (no debts), and have re-established a nice savings account with a [B]Canadian[/B] (some of the safest in the world ~ or so they say) bank.
How did you come to the 0.8% figure?
Also, how many trades do you take in an average month and what’s the risk/reward?
I’m asking because I’m wondering how one could grow an account where the max trade is less than 1%. I’m assuming that the average trade is less.
I got also time stop loss for month and this is max 5% and if I blow my account down -5%, I stop trading for rest month (cheasing girls relax from trading), and 0.8% is from: I have divided 5% in 6 trades 5 / 6 is 0.8333% per trade and after taking 6 loss I will have a break.
In trading month we got about 21-22 trading days and in average 2.15 trades per day and winning trades are about 50-57% and got about in average 15R in month (my R is 140 euro) and my paycheck from trading is 2100 euro (average) and I blindly follow my trading plan and everything got writen on paper and it’s work’s for me in this way. I recommed for you very good book, do take a look for use one from Ebay, Van Tharp’s Definitive Guide To Position Sizing