Safety of funds at FX dealer

Discussion in 'Forex' started by Kicking, Sep 26, 2008.

  1. This topic has been rehashed to no end on ET but in light of recent events , it should be of increased concern I believe.
    For ex. Oanda holds your funds with JP Morgan, so far so good for JPM but what happens if the custodian bank goes under ?
    There is no FDIC here.

    Anyone knows another FX dealer allowing mini lot trading with some sort of insurance on funds such as Lloyds or FDIC ?
  2. vv111y


    IB has Lloyd's
  3. There are some in Europe, for example ABN Amro or Saxobank. Minimum bank insurance in the EU is EUR 20K if i remember correctly, many provide more than this minimum.

    Most UK FX shops are members of the 'Financial Services Compensation Scheme' (Hotspot EU division i.e.) - but you got to read the fineprint, for example Alpari UK does not provide that.