How brokers protect their clients.

Trading in financial markets in itself is a rather difficult and dangerous activity, but in addition there is a possibility of losing money due to the bankruptcy of the broker.

Which have been happening with enviable regularity lately, one or another company disappears, leaving its traders without the money they earned.

It would seem that the situation cannot be corrected, but it can be prevented if you choose the most secure broker from the very beginning.

How do brokers take care of the safety of their clients' funds?

• Participation in compensation funds - that is, brokers enter into an agreement with similar companies and pay fees, at the same time, these companies guarantee a certain amount of payments in the event of bankruptcy of the broker.

• Branches in several countries - helps if the broker's activities have come under attack from the government. Clients are simply transferred from one office to another and you, living in Russia, can easily be served in the European branch of the company.

• Segregated bank accounts – clients’ money is stored in special cash accounts, and the broker can only use them to conduct transactions on the stock exchange. But it is impossible to simply take and 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.

In addition, additional evidence that confirms the reliability of the broker is the presence of a special brokerage license.

These are licenses for brokerage activities, and not for gambling or accepting bookmaker bets. Any trader should understand that protecting his funds is primarily his task, therefore, even despite all the protection methods, it is best to keep only the money necessary for trading with a broker.

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