Is there any Escrow or similar type of service out there that enables you to deposit money with them instead of the FX broker and use it as margin to trade? Even though some brokers offer segregated accounts I don't think that's enough. I want to protect myself from similar type of action like the SNB which caused many brokers to lose client's funds. If there's any other solution to this issue, I would be grateful for the ideas.
Yes there is but the minimum required capital is very high usually at least high six figures and even more and it is usually arranged via private negotiations with them. Remember those brokers earn interest on the money that we deposit with them in those "segregated" account so for them to forego those interest, you obviously have to give them more incentive to do so.
Thank you LLxa for that information. Are you able to give me some company names that offer that service? I don't mind giving them the interest payments as long as I can feel the safety of my funds.
Dukascopy, LCG Capital comes to mind and maybe Baxter FX. And you can approach any big brokerage firms and ask if they would allow you to trade via escrow account. You have to ask BIG firms though, not those bucket shops that allows you to trade with $200 with 1000:1 margins. LOL Good luck!
Thank you LLxa. I was thinking if there was a specialist FX Escrow company out there? I want to do business with a particular broker via an Escrow service.