How brokers ensure the protection of their clients.

Trading in financial markets is a complex and dangerous endeavor in itself, but there's also the risk of losing money due to broker bankruptcy.

These have been happening with increasing regularity lately, with one company or another disappearing, leaving their traders without their hard-earned money.

It might seem impossible to remedy the situation, but it can be prevented by choosing the most secure broker from the start.

How do brokers ensure the safety of their clients' funds?

• Participation in compensation funds – brokers enter into agreements with such companies and pay contributions, while these companies guarantee a certain amount of payout in the event of the broker's bankruptcy.

• Branches in several countries – helpful if the broker's activities are under attack by the government. Clients are simply transferred from one office to another, and you, living in Russia, can safely receive services from the company's European branch.

• Segregated bank accounts – clients' funds are kept in special cash accounts, and the broker can only use them for trading on the exchange. It is impossible to simply transfer these funds to another bank account.

• Insurance is one of the options for protecting both the brokerage company itself and the money of its clients.

Furthermore, the presence of a special brokerage license confirms a broker's reliability. This license specifically applies to brokerage activities, not gambling or bookmaking.

Every trader should understand that protecting their funds is their primary responsibility, so even despite all the protection measures, it's best to keep only the funds needed for trading with a broker.

When choosing a company, pay attention not only to advertising and rankings , but also to the factors listed above.