Segregated funds are a promise, and promises need reading

[Shadow Trader]

Brokers in regulated jurisdictions are generally required to hold client money separately from company money. That's what "segregated" means. It's a protection if the broker fails.

The details vary a lot. Where the money is held, which bank, how it's protected, and whether there's a compensation scheme differ by country and by the entity a client is signed up with. Many international brokers have several entities, and the one a trader is placed with may be the least protected.

A few questions worth asking: which legal entity holds the account, what regulator oversees it, is there an investor compensation scheme and to what amount, and are client funds held at a tier-one bank?

For a scalper, the account balance is working capital, and it sits at the broker constantly. A broker failure freezes it.

Withdrawals are the other test. A broker that processes small withdrawals quickly and consistently is a better sign than any marketing page.

Which entity of the broker holds the account, and was that checked when signing up?