Account Safety

Safety of funds is a top priority for managed account investors.

Bankruptcies of large US-investment firms like REFCO (2005) and MF Global (2011) have left a multitude of managed forex investors in front of a 7-Eleven with a cup in their hand! (read the blog posts, "Is Your Forex Account Really Safe?" and "Are MF Global Forex Accounts Safe?" for more detailed information).

The good news is that unless you're one of the unlucky saps that tends to fall for investment scams like Madoff's Ponzi scheme or Stanford's high yield CD's (which can easily be avoided by never sending money directly to the manager), you can easily safeguard your account in a managed product. How?

First, by investing directly with a broker that is fully regulated. Second, by making sure that the accounts are "segregated," something that Jon Corzine of US-based MF Global seems to have forgotten…And third, and probably most importantly, make sure that the brokerage firm offers additional protection for your money.

Please note that we are not talking about about US-based, NFA-registered FX firms here, which leave a lot to be desired when it comes to account protection over forex assets (see the MF Global blog post above). We're referring to a something like insurance or a Trust Account, which we offer our clients for maximum account safety (see the link to the "Is Your Forex Account Really Safe?" blog post above).

If you follow the above advice, you will be able to sleep more peacefully at night.