When you research the trust protection policies of overseas forex brokers, you'll usually find brokers listed with a choice between "trust protection" and "segregated accounts." However, youcan't determine whether your money will be returned. Even if it says "insurance provided," that insurancedoesn't necessarily mean it will be effective if the broker goes bankrupt.
This article directly examines the official websites, insurance certificates, and terms of service of 14 overseas forex brokers, summarizing their fund management methods and compensation details with the dates of verification . In addition, it shows, based on primary sources, which clauses mandate trust protection for domestic forex brokers and what actually happened with bankrupt companies.
Conclusion | Key Points Regarding Trust Protection in Overseas Forex Trading (as of September 2026)
- The difference between trust protection and segregated management lies in "who holds the funds ." With a trust, the funds are held by a trust bank outside the company , meaning creditors cannot access them even if the company goes bankrupt. With segregated management, the company simply keeps separate records; the funds remain within its premises.
- Of the 14 companies surveyed, only three (Tradeview andAXIORY) used the term "trust" to describe their services . However, neither of these two companies disclosed the name of the trustee bank or the maximum trust amount . Most of the others used the term "segregated management."
- There was a broker whose official website's explanation and the terms of service were inconsistent .BigBossfunds equal to the amount of your investment funds, 's official guidelines state that "we will segregate " while its terms of service stipulate that it will hold customer funds as collateral and can move them between accounts without notice.
- There are four types of "compensation," and they all have completely different contents: ① Statutory compensation fund ② Liability insurance ③ Insurance to cover customer losses ④ Funds of dispute resolution bodies.② and ④ do not function in the event of the company's bankruptcy.
- Three companies had made their insurance certificates public .HFM's Japanese page states "5 million euros," but the certificate is "USD 5,000,000 , " the total amount including professional liability insurance and legal fees .FXGT's certificate is also EUR 1,000,000, the total amount including fees, shared with affiliated companies , and clearly states that "no rights are granted to the holder."
- The Financial Commission's compensation fund, by its regulations, excludes "bankruptcies that affect all of a company's customers." Therefore, it is not a system that can be used in the event of bankruptcy.
- FSCS (up to £85,000) and ICF (90% and up to €20,000) are generally not applicable to accounts used from Japan. This is because Japanese residentsoftenwith companies in countries such as Seychelles, Mauritius, and Vanuatu,which are not regulated by the UK FCA or Cyprus CySEC.Some firms have CySEC/ASIC companies within their group, but the outcome depends on which company you contract with.
- The collapse is indeed happening. GEMFOREX (Gemtrade LLC) ceased operations and became insolvent on May 31, 2023,and as of February 2026, the liquidation processwas
- Trust protection for domestic FX is legally mandated . Over-the-counter FX is required to be managed separately under Article 43-3, Paragraph 1 of the Financial Instruments and Exchange Act , and the requirements for such trusts are stipulated in Cabinet Office Ordinance Article 143-2, "Customer Segregated Management Trust."
*This article was created by the MoneyCharger editorial team in accordance with their content creation policy . The fund management methods and compensation systems of each company were verified in September 2026 by checking the original text of the official website, official FAQ, terms of service, and insurance certificate (including the English version) (the source URL and verification date are clearly indicated in the table in the main text). Fund management systems and compensation conditions may be changed at the discretion of the broker . Please be sure to check the latest information yourself before opening an account. Items that could not be verified are indicated as "could not be verified," and it is not written that they "do not offer" something because they could not be verified . Overseas FX brokers are not registered with the Japanese Financial Services Agency, and the Financial Services Agency and the Consumer Affairs Agency have issued warnings about trading with unregistered brokers.
If you are new to overseas forex trading,our complete guide for overseas forex trading beginners.
What is trust protection? | Under whose name and where is your deposited money located?
Trust protection is a system where money deposited by customers is held and managed by a trust bank located outside the FX company.The key point is not whether the money is "separated" or not, butwhether it is outside the company. This is the crucial difference between this and segregated accounts.
| Points to compare | Trust protection | Separate management |
|---|---|---|
| People who have money | Trust banks(outside of FX companies) | FX company itself |
| If an FX company goes bankrupt | Since it is a trust asset,the company's creditors cannot access it. | There is a risk that it will be treated together with company assets. |
| Return procedure | It will be returned according to a predetermined procedure | Liquidated in bankruptcy proceedings |
| Implementation costs | Trust fees and other charges will be incurred on an ongoing basis | Relatively low |
| Domestic FX | Obligated by law(Financial Instruments and Exchange Act, Article 43-3, Paragraph 1, etc.) | — |
| Overseas FX | It is not mandatory(it is at the discretion of each company). | This is the majority |
The only time being "outside the office" is beneficial is when you go bankrupt
As long as you can trade and withdraw funds as usual, there is no difference between trust protection and segregated accounts.The only time the difference becomes apparentis if the FX company goes bankrupt.
Money held in trust is legally treated as trust property . Since it is not the property of the FX company, even if the company goes bankrupt , banks and business partners that lent money to the company cannot seize it . On the other hand, segregated accounts mean that the company holds customer money separately in its own accounts, designating it as "customer money" in its accounting records . Even though the accounting records are separate, the money itself remains within the company.
In other words , segregated management is a system that assumes the company is operating according to the rules . What actually happened to the bankrupt companies is handled based on primary information obtained from what happened to those bankrupt companies
The principal is not guaranteed
Trust protection is not a system that will cover losses incurred from trading.What is protected is "the account balance at that time," and losses incurred due to currency fluctuations are not covered.If your balance decreases due to a stop-loss order, only the amount after the reductionwill be covered by the protection.
The idea that "you won't lose money because there's trust protection" is incorrect. Trust protection only answers the question, "If the company goes bankrupt, will the money that was left over at that time be returned?"
Trust protection for domestic FX is mandated by law | Read the legal text
Trust protection in domestic FX is a legal obligation, not a service provided by the broker.Understanding which articles of law mandate what obligations will clearly highlight the differences between domestic and overseas FX.
The basis for this obligation is Article 43-3, Paragraph 1 of the Financial Instruments and Exchange Act
Article 43-3, Paragraph 1 of the Financial Instruments and Exchange Act stipulates that, regarding over-the-counter FX (over-the-counter derivative transactions), the margin deposited by customers must be managed separately from the firm's own assets .
Financial instrument business operators, etc., with respect to the derivative transactions etc. (...) they conduct, must manage the money, securities, and other guarantees or securities that they receive from customers pursuant to the provisions of Article 119 separately from their own assets, in accordance with the provisions of a Cabinet Office Ordinance
Source:e-Gov Law Search, Financial Instruments and Exchange Act, Article 43-3, Paragraph 1(Accessed September 2026)
The article states, "as prescribed by Cabinet Office Ordinance." This means that the specific method is not defined in the law itself, but rather in the Cabinet Office Ordinance concerning financial instruments business, etc.
"Customer segregation trust" and "customer segregated fund trust" are different things
The Cabinet Office Ordinance mentions two trusts with very similar names . Many people who search online say they "don't understand the difference." The transactions covered by each trust are different .
| name | basis | Transactions that are subject to this rule | Related systems |
|---|---|---|---|
| Customer segmentation management trust | Cabinet Office Ordinance Article 143-2 | Currency-related derivative transactions(= over-the-counter FX), cryptocurrency-related derivative transactions, etc. | — |
| Customer segregated money trust | Cabinet Office Ordinance Article 141(Article 43-2, Paragraph 2 of the Act) | Securities-relatedtransactions | Investor Protection Fund(requirements differ depending on whether you are a member or not) |
| Product customer segmentation management trust | Cabinet Office Ordinance Article 142-5 | Commodity-related market derivatives trading | — |
The articles defining the requirements for a customer segregation trust specify who will be the trustee and who will be the beneficiary
The trustee is a financial instruments business operator or similar entity, and the trustee is a trust company or a financial institution engaged in trust business, with the customers of the currency-related derivative transactions etc. (...) conducted by the said financial instruments business operator or similar entity being the beneficiaries of the principal
A beneficiary representative will be appointed, ..
Source:Article 143-2 of the Cabinet Office Ordinance concerning Financial Instruments Business, etc.(Confirmed September 2026)
The relationship is as follows: the FX company provides the money, the trust company or financial institution that operates a trust business holds it , and the customer has the right to receive the principal . The clause also states that a beneficiary representative can be appointed. This is a system in place to pre-determine someone who will handle the return process on behalf of the customer , even if the company goes bankrupt and is unable to handle the procedures themselves
*This beneficiary agent system is a system for domestic FX as defined by a Cabinet Office Ordinance in Japan. This system does not apply to overseas FX brokers. You may see explanations of overseas FX that say "returns are made from the trust bank through a beneficiary agent," butthat is a description of the system for domestic FX.
This obligation does not apply to overseas forex trading
The provisions up to this pointapply to Japanese financial instrument business operators. Overseas FX brokers are not registered with the Japanese Financial Services Agency, and thereforenot subject to these obligations. Whether or not to implement trust protection is at the discretion of each company, and, most companies do not implement it.
The differences in regulations between domestic and overseas forex trading are also covered in the section on the differences between overseas and domestic forex trading
A cross-sectional comparison of fund management and compensation at 14 overseas forex brokers
Upon reviewing the official websites of 14 companies, only three used the term "trust" in their explanation. Many others used "segregated management," indicating differences in terminology. The "compensation" section not only specifies the amount but also the source of the funds
The conditions for this comparison
- Target Companies | In addition to the 14 current overseas forex brokers (8 companies listed in the previous edition + 6 major companies), GEMFOREX is included as a reference example of a company that went bankrupt. The denominator for the ratio "X out of 14 companies" is the current 14 companies.
- Verification sources:the official websites, official FAQs, terms of service, and insurance certificates. Descriptions from third-party websites are not used.
- Verification Date | September 18-24, 2026 (Source URLs for each vendor are at the far right of the table)
- Notation |the currency and units exactly as they are written by the official source, and have not performed any conversions ourselves.
- Items that could not be confirmed are marked as "Could not be confirmed." The fact that something could not be confirmed does not mean it is "not provided."
| Contractor | Fund management methods | Whether or not there is "compensation" and the type of source of funds | Regulations and Registration | Source (verified September 2026) |
|---|---|---|---|---|
 Tradeview | Trust(trusted to a bank + segregated management by the independent accounting firm GC PARTNERS) | Unable to confirm the information | Cayman Islands Monetary Authority (CIMA)License #585163 | Official homepage (Company Profile section) |
 XMTrading | Segregated accounts(managed by a reputable financial institution) +external audit(clearly stated that financial statements will be audited annually) | I was unable to find any information regarding the compensation system | Seychelles FSA SD010(Tradexfin) / Mauritius FSC GB20025835(Fintrade) | Official "Reasons for Choosing Us" |
 HFM | Separate management | Yes / Liability insurance . The certificate is for professional liability insurance of USD 5,000,000 ( total amount including legal fees ). | The insured person isHF MARKETS (SV) LTD(Saint Vincent). | Official "Security of Funds"+ Insurance Certificate PDF |
 FXGT | Segregated management(deposited in a reputable bank) | Yes / Civil Liability Insurance(Lloyd's). The certificate isEUR 1,000,000,including fees, andis shared with affiliates. | Seychelles SFSA SD019/ South Africa FSCA 48896/ Vanuatu VFSC 700601 | Official "Security of Funds" |
 XS | Segregated accounts("Segregated accounts at highly reliable international financial institutions") | Yes / Civil Liability Insurance (Lloyd's). Claims coverage of up to US$5 million in case of damages exceeding US$10,000 or in the event of bankruptcy. | ASIC 374409/ CySEC 412/22/ Seychelles FSA SD089/ FSCA 53199, etc.The official statement clearly states, "Regulatory provisions regarding investor compensation schemesXSvary depending on | Official "safety" |
 TitanFX | Segregated accounts are clearly stated("completely separate from own funds," "held in a separate bank account at a trusted banking institution") +external audit(DFK Collins Pty Ltd). | Yes / Liability insurance + Dispute Resolution Fund. Professional liability insuranceUSD 500,000, Directors and Officers liability insuranceUSD 2,500,000, Financial Committee€20,000(Excludes all customers in the event of bankruptcy) | Vanuatu VFSC Titan FX Limited (40313)/ BVIFSC Atlanticic Markets Limited (SIBA/L/23/1124)/ Mauritius FSC Titan Markets (GB20026097) | Official "regulations" |
 Vantage | Separate management | Yes / Insurance that explicitly covers customer losses(Excess of Loss, underwritten by Lloyd's ARCH 2012).Maximum payout of USD 1,000,000 per claimant, total payout of USD 50,000,000. However,there is a deductible of USD 20,000 per claimant,is limited to bankruptcy, trading losses are not covered, andthere is no right to claim directly from the insurance company. | The official statement clearly states that "the scope of protection varies depending on the business entity holding the account and the customer agreement." | Official "Fund Insurance" |
 MiltonMarkets | Segregated management(clearly stated) +external audit(clearly stated as subject to periodic audits) | Unable to confirm the information | FSA (License issued by a sister company. The contracting entity is registered in Saint Lucia.) | Official "Customer Protection System" |
 MyfxMarkets | Segregated management + external audit(explicitly stated) | Unable to confirm the information | Seychelles FSA SD202(MYFX GROUP LIMITED) | Official "Reasons for Choosing Us" |
 ThreeTrader | The trust is explicitly stated (Official FAQ: " Customer funds are held in a customer trust account at a Tier 1 bank, " "Strict segregation of customer assets is maintained"). | Yes / Funds of dispute resolution bodies. Financial Services Commission compensation fund (but does not cover all customers in the event of bankruptcy). | Vanuatu VFSC 40430(ThreeTrader Global Limited) / Mauritius FSC GB24203958(ThreeTrader Global (MU) Pty Ltd) | Official homepage (Company Profile section) |
 AXIORY | Explicit trust agreement(English FAQ: "customer funds are managed separately from our company's funds at a trustee bank," "transferred to a trust account") + segregated accounts + third-party audit | Yes / Fund of a dispute resolution body . Financial Services Commission Category A member (officially stated as "up to 20,000 USD ") | Belize FSC 000122/29(Axiory Global) / Mauritius FSC GB21026376(Tradit Ltd) | Official FAQ "About Axiory" |
 BigBoss | There is a clear statement regarding segregated accounts(official guidelines: "We will hold funds equal in value to your investment funds in aseparate").However, the terms of service do not contain a clause regarding segregated accounts, and instead stipulate that customer funds will be held as collateral. | Unable to confirm | Comoros BFX2024045 | Official "Guidelines"+ Terms of Use |
 Exness | Unable to verify from Japan(requires login) | Unable to confirm | Seychelles FSA SD025 | The official website is requesting login and the content is not displayed |
| GEMFOREX (Gemtrade LLC) | — Undergoing bankruptcy proceedings | ― | Registered in Saint Vincent and the Grenadines (no registration with the regulatory authority overseeing FX operations could be confirmed) | Official "Bankruptcy Notice" |
*In the previous version, the eight companies were listed under only two categories: "trust protection" and "segregated management." However, because the source of compensation funds, regulated entities, and confirmation dates were missing, the categories have been separated and revised for this version. Also,GEMFOREX has been excluded from the comparison of fund management as it has been officially announced that it is undergoing bankruptcy proceedings. You can check the details of each company at the source URL above.
Three companies used the word "trust"
Tradeview, to explain where their funds were depositedAXIORY, andThreeTraderthe only three companies were that used the term "trust" on their official websites
In accordance with financial regulations, Tradeview entrusts customer account funds to a bank, keeping them completely separate from its own capital, and managing them separately through GC PARTNERS, an independent accounting firm
Source:Tradeview Official "Company Profile"(Accessed September 24, 2026)
AXIORYmentions trusts in its English-language FAQ
Regardless of the type of account, customer funds are managed separately from our company's funds at a trustee bank. Funds received from customers via credit card payment agencies or other collection agencies are first deposited into our corporate account and then transferred to a trust account for safekeeping.
Source:AXIORY official FAQ "About Axiory"(Accessed September 24, 2026)
ThreeTraderalso mentions trusts in its official Japanese FAQ
ThreeTraderprioritizes security and reliability, and holds customer funds in customer trust accounts at Tier 1 banks. This ensures the segregation of customer assets and guarantees the safety of funds even in the event of unforeseen circumstances
Source:ThreeTrader Official FAQ(Accessed September 24, 2026)
However, none of the three companies have disclosed the name of the trust bank where the funds are deposited, the maximum trust amount, or the composition of the beneficiaries. While domestic FX customer segregation trusts are required by Article 143-2 of the Cabinet Office Ordinance to appoint a beneficiary representative, it is not possible to confirm from the publicly available information whether overseas FX "trusts" have similar requirements . The words may be the same, but the amount of information that can be confirmed differs .
WhileXMTrading states that "even if insolvency occurs, your funds will be protected,the trust and insurance mechanisms that form the basis of this protection have not been disclosed(only segregated accounts and external audits are officially mentioned).The statement "your funds will be protected" does not necessarily correspond to the amount of information disclosed as the basis for that protection.
Most of the remaining fundsheld in segregated accounts. XMTrading states that "customer funds are kept completely separate from our accounts and managed by reputable financial institutions,"FXGTstates that "customer funds are never used for our own purposes or for other investments," and TitanFX states that "Titan FX's own funds... and held in a separate bank account at a trusted banking institution."None of them state that the funds are transferred to a trust bank outside of the company.
There may be discrepancies between the official website's description and the terms of service
BigBossstates the following on its official "Guidelines" page:
Regarding security, BigBosswill hold a separate account for an amount equal to your investment funds
Source:BigBoss official "Guidelines"(Accessed September 24, 2026. English version is titled "segregated management")
On the other hand, the company's Terms of Service (Client Agreement) does not contain any segregated accounts clause.The "CLIENT MONEY" section contains the following:
All funds, securities, currencies, and other property of Client which BigBoss or its affiliates may at any time be carrying for the Client … are to be held by BigBoss as security and subject to a general lien and right of set-off for liabilities of Client to BigBoss
BigBoss may in its discretion, at any time and from time to time, without notice to Client, apply and/or transfer any or all funds or other property of Client between any of the Account.
Source:BigBoss Terms of Service (Client Agreement), Article 9 "CLIENT MONEY" 9.1 (Accessed September 24, 2026)
The terms and conditions state that customer funds will be "held as collateral," "subject to general liens and set-off rights," and "can be moved between accounts at the discretion of the company without notifying the customer ." The content differs between the same company's website and its terms and conditions.
ThisBigBossisn't just limited to ; it simply means that the promotional text on a page and the terms and conditions you actually agree to are different documents . Before opening an account, reading the section on "Client Money" in the terms and conditions will reveal the differences between the promotional text and the actual terms
Exnessfrom Japan, users are prompted to log in, and the content cannot be viewed without an account.Our editorial team has confirmed the same issue in our investigation of stop-loss and swap rates,structured in a way that makes it impossible to compare trading conditions before opening an account.
Other media outlets sometimes definitively state that these companies also use "trust protection" and "segregated management."Our editorial department only writes about information that we were able to officially confirm, and anything that we could not confirm is marked as "unconfirmed."
There are four different types of "compensation included" | The same words can mean different things
When comparing overseas forex brokers, the figures listed as "maximum compensation of XX million yen" often include brokers with completely different underlying capital bases.In particularwhether or not the compensation is usable in the event of the broker's bankruptcyvaries depending on the type of broker. Before considering the amount, please look at this point.
| kinds | What is the money for? | Examples confirmed in this article | When a business goes bankrupt |
|---|---|---|---|
| ① Statutory compensation fund | A fund established by the industry as part of a regulatory framework | FSCS(UK - up to £85,000) /ICF(Cyprus - 90% and up to €20,000) | This system is intended to be effective here. However,accounts used from Japan are less likely to be eligible(see below). |
| ② Liability insurance | Insurance that covers the company's liability for compensation to someone. | HFM (Professional Liability Insurance USD 5,000,000) / FXGT (Private Liability Insurance EUR 1,000,000) / TitanFX (Professional Liability USD 500,000 + Directors and Officers Liability USD 2,500,000) / XSXS.com Clearly states Lloyd's Private Liability Insurance Program ) | This is not insurance to return the money deposited by customers. However,XSclaims that it also covers losses in the event of bankruptcy. |
| ③ Insurance that explicitly states that it covers customer losses | Company-optional insurance for customer damages | XS$(Losses exceeding US$10,000, up to US$5 million in bankruptcy) / Vantage (Excess of Loss, maximum USVantageper claimant, total limit US$50,000,000) | It may be applicable under certain conditions. Be sure to check the deductible, eligibility requirements, and exclusion clauses in the terms and conditions. |
| ④ Funds of dispute resolution bodies | A fund accumulated from membership fees by a private organization of businesses | Financial Commission(maximum €20,000 per customer). TitanFX,ThreeTrader,AXIORY, andVantageare members | The terms and conditions exclude "all customers in the event of the company's bankruptcy." |
② Liability insurance is not "insurance that returns the customer's money."
This is where the biggest misunderstandings arise.Liability insurance is a contract that covers compensation payments when a company causes damage to someone due to a mistake in its operations. It is not designed to cover situations where the company goes bankrupt and cannot return deposits.
TitanFX's official website explains the contents of the insurance as follows:
Professional Indemnity Insurance provides protection against claims arising from professional negligence, omission, or fault. Each claim and the total limit is US$500,000…
Directors & Officers Liability Insurance protectsTitan FXofficers from personal liability arising from alleged misconduct, providing coverage of up to US$2,500,000 per claim and in total
Source:TitanFX Official "Regulations"(Verified September 24, 2026)
The formerclaims arising from "professional negligence, omission, or fault,"while the latter"Titan FXprotects the officers of.Directors' and officers' liability insurance doesn't even protect customers. The large amounts may seem reassuring, but their nature is different.
③ Additional insurance for customers has deductibles and eligibility requirements
This is insurance that explicitly states it covers customer losses. However, it comes with conditions such as "from what amount" and "who is covered." Furthermore,XSalso states on the same page that it "enrolls in Lloyd's Civil Liability Insurance Program," making it difficult to determine the boundary between ② and ③ based solely on each company's wording . Of the 14 companies surveyed, only publicly displayed their insurance certificatesHFM,FXGT, andVantage.
XSoffers additional insurance that covers losses exceeding US$10,000 and up to US$5 million in the event of bankruptcy
Source:XSOfficial "Safety"(Verified September 18, 2026)
It says "losses exceeding US$10,000." This means that losses below that amount are not covered , and the system is designed so that people with small balances will not receive the benefit .
Vantageis the same type of insurance. The official description clearly states that it is Excess of Loss insurance and that it is limited to eligible clients
Eligible clients may benefit from an additional layer of protection through Excess of Loss insurance, providing coverage of up to USD1 million in respect of the Net Loss of any one eligible Claimant, subject to a maximum aggregate coverage of USD50 million and the applicable policy terms, conditions, exclusions, and limits.
Source:Vantage official "Fund Insurance"(verified September 24, 2026)
At the end, it says "applicable policy terms, conditions, exclusions, and limits." And the crucial conditions are written in a footnote on the same page .
Excess of Loss insurance applies only in the event of an Insolvency Event during the applicable Policy Period for customers who satisfy the requirements for Claimants under the Policy. A minimum retention of USD20,000 applies per Claimant. Trading losses are not covered.
Claimants are beneficiaries under the Policy but do not have a direct right to bring a claim against the insurer.
Source:Vantage official "Fund Insurance"page (verified September 24, 2026). Underwritten by ARCH 2012 at Lloyd's of London.
The important point is that"A minimum retention of USD 20,000 applies per claimant.This insurance does not cover losses below USD 20,000.Furthermore,it is explicitly stated that coverage is limited to insolvency events,trading losses are not covered, andeven though the claimant is a beneficiary of the insurance, they do not have the right to claim directly from the insurance company.
*While some comparison articles from other companiesVantagemay mentionthe official website states a maximum of USD 1,000,000 per claimant and a total of USD 50,000,000(confirmed September 24, 2026). When quoting amounts, please also check the source and confirmation date.
What is written on an insurance policy? | Examples fromHFMandFXGT
—had publicly released their insurance policiesHFM,FXGT, andVantageonly three—Reading the actual policy reveals conditions not mentioned in the advertising materials.Since the official sources have released the original documents, anyone can verify them.
The Japanese page displays "5 million euros"
With industry-leading insurance coverage of €5 million, we maintain an insurance program to further enhance our responsibility to our customers against fraud, errors, and other risks
Source:HFM official "Fund Security"(Accessed September 24, 2026)
The statement itself says, "This is insurance to further strengthen our responsibility to our customers." The official explanation is that it is not insurance to protect customer assets, but rather insurance to prepare for the company's liability .
The original text on the certificate was "USD 5,000,000"
This is the main text of the insurance certificate PDF that can be opened from the same page
Insured: HF MARKETS (SV) LTD (Saint Vincent and the Grenadines)
Professional Indemnity Insurance
Limit of Liability: USD 5,000,000 Any One Claim and in the aggregate including defense costs and expenses
Source:HFM Insurance posted on Certificate of(Issued by Marsh Insurance Brokers Limited, verified September 24, 2026)
| item | Japanese page | Original text of the insurance certificate |
|---|---|---|
| Currency and Amount | 5 millioneuros | USD 5,000,000(5 millionUS dollars) |
| Types of insurance | "Insurance Program" | Professional IndemnityInsurance |
| Range of amounts | Not specified | including defense costs and expenses / in the aggregate |
| insured person | Not specified | HF MARKETS (SV) LTD(Saint Vincent and the Grenadines Corporation) |
Meaning of "total amount including legal fees"
The phrase "including defense costs and expenses" in the certificate means that legal fees incurred in litigation will also be paid from the same $5 million limit . "In the aggregate " means that the total limit applies throughout the insurance period, not per case
In other words,the longer the dispute drags on and the more expensive it becomes, the less money will be available for compensation. The interpretation that "the entire 5 million euros will be distributed to the customers" is incorrect.
The insured isHF MARKETS (SV) LTD, a corporation located in Saint Vincent and the Grenadines.Whether this certificate is relevant depends on which corporation opened your account. Please check the name of the corporation listed in your account opening agreement.
FXGTcertificate had the same structure
FXGTalso displays its insurance certificate on its official website. The explanation on the Japanese page is as follows:
Liability Insurance: Our company is insured against certain losses resulting from business negligence, etc. This insurance includes compensation for economic losses resulting from negligence, omission, and other business risks. (There are limitations on coverage and application conditions.)
Source:FXGT Official "Safety of Funds"(Accessed September 24, 2026)
the cause was "due to professional negligence, etc."The publicly available certificate contained the following information:
| item | HFM | FXGT |
|---|---|---|
| Types of insurance | Professional Indemnity Insurance | Civil Liability Insurance Policy for Forex Brokers |
| limit amount | Currency 5,000,000 | EUR 1,000,000 |
| range | Any One Claim and in the aggregate including defense costs and expenses | in the aggregate costs and expenses inclusive |
| Sharing of slots | insured as part of a group policy | The cover of this insurance is shared with other affiliated entities. |
| underwriting | 100% Lloyd's | Certain underwriters at Lloyd's |
| insured person | HF MARKETS (SV) LTD | GT Global Ltd |
FXGTcertificate also includes the following disclaimer:
This evidence of insurance is provided for information purposes only and confers no rights upon any person in possession of it.
The cover of this insurance is shared with other affiliated entities.
Source:FXGT posted on Insurance certificate (Confirmation of Cover)(Issued by Renaissance Insurance Brokers Ltd, verified September 24, 2026)
It states, "This insurance certificate is for informational purposes only and does not grant any rights to the holder." This means that a customer who sees the insurance certificate cannot directly file a claim against that insurance . Furthermore, the coverage limit is shared with affiliated companies
Vantagealso publishes certificates, but our editorial team was unable to verify the contents of the files (access from Japan is restricted). The official page states that "subject to the terms, exclusions, and limits of the applicable terms and conditions."
*This criticismHFMdoes not negateThe fact that they publish their insurance certificates on their website is commendable as a disclosure stancepublished their certificatesHFM,FXGT, andVantage). The issue this article addresses is the waypresented, which can be interpreted as "having €5 million in coverage means that even if the company goes bankrupt, you will get up to €5 million back.
The Financial Services Commission's compensation fund does not cover "bankruptcy."
The Financial Commission's compensation fund is explicitly stated in its regulations as not applying to situations where a broker goes bankrupt and all customers suffer losses.TitanFX,ThreeTrader,AXIORY, andVantageare members of this fund, and it is a system that is often introduced in Japanese comparison articles as having a "compensation fund."
It's not a government system, but a private organization created by a company
The Financial Services Commission (FSC) is an independent third-party body that resolves disputes between FX and CFD brokers and traders . It is not a regulatory authority, but is operated by a private organization called FINACOM PLC LTD . TitanFX's official website also describes it as " an independent organization specializing in dispute resolution ."
The compensation fund is funded by 10% of the monthly membership fees paid by member businesses . The regulations state that these funds are held in a separate bank account and cannot be used for the organization's operating expenses . This means that the funds come from contributions by member businesses , not from public insurance premiums or taxes
The terms and conditions include "bankruptcy" as an exclusion clause
The regulations list the following as areas not covered by the compensation fund (the basis for these exclusions is explicitly stated in clause 16 of the regulations):
- Losses incurred by traders while engaging in self-directed trading
- If a broker goes bankrupt, the entire client base of that broker should become insolvent
- Trading in investment accounts, trading in synthetic products, non-marketable products, and digital currency markets
The second point is precisely "the bankruptcy of the broker."The original text of the terms and conditions states, "does not apply to a broker member's entire client base should the broker become insolvent"meaning that if a broker goes bankrupt, the terms and conditions do not apply to all of that broker's clients. Trust protection covers this situation, sothe Financial Services Commission's compensation fund cannot replace trust protection.
It can be used "when the contractor does not comply with the arbitration decision."
So, when are payments made? The TitanFX official website explains the procedure
Special compensation fund Titan FXwill compensate up to €20,000 per complaint
Step 2: Within 45 days of the incident, file a complaint on the Financial Services Commission's website. (Free of charge)
Step 5: If the ruling is in your favor andTitan FXrefuses to comply, you will be compensated
Source:TitanFX Official "Regulations"(Verified September 24, 2026)
The premise is that a complaint is filed, a ruling is issued, and the company fails to comply . The regulations also state that it "will only be used in response to rulings issued by the committee." This is a different scenario from a company that has already gone bankrupt and no longer exists .
Furthermore, the terms and conditions state that if there are multiple claims and the funds are insufficient, the remaining balance will be divided equally among the claimants . The €20,000 limit is per client and does not guarantee that this amount will be paid . Payments are to be made within 90 days of the committee's decision regarding a change in a member's status (such as expulsion) . There is also a 45-day deadline for filing a claim
*The Financial Services Commission's compensation fund is a system that can actually function in cases of withdrawal problems and disputes regarding trade execution . This article is only pointing out that " it is not appropriate to introduce it as a way to prepare for bankruptcy ." Information on where to seek advice regarding withdrawal problems is compiled under " Withdrawal Refusal by Overseas Forex Brokers ."
Are FSCS and ICF applicable to Japanese accounts?
Neither the UK's FSCS nor Cyprus' ICF generally apply to overseas forex accounts used from Japan.The reason is not the amount of compensation, butbecause the legal entities that Japanese residents contract with are often not regulated by the FCA or CySEC.Some brokers have CySEC or ASIC approvals as a whole, so the conclusion depends on "which legal entity you contract with."
FSCS requires "FCA approval."
The FSCS (Financial Services Compensation Scheme) has an investment limit of£85,000 per person/company(for companies that went bankrupt on or after April 1, 2019). However, its official website states the following as the premise for compensation:
the PRA or the FCA must have authorized the provider or adviser, as well as regulated the service and product
Source:FSCS Official "What we cover: Investments"(Accessed September 18, 2026)
This offer is contingent on the provider and services being licensed and regulated by a UK authority (PRA or FCA) . Customers of unlicensed companies are not eligible.
The ICF says "whichever is lower, 90% or 20,000 euros."
The way the amounts are determined for Cyprus's ICF (Investor Compensation Fund) is a bit complicated
the lower of 90% of the cumulative covered claims of the covered client and €20.000
Source:CySEC Official "Investor Compensation Fund"(Accessed September 18, 2026)
The lower of "90% of the eligible claim amount" and "20,000 euros" will be paid. It is often overlooked that the maximum amount is 90% , not the full amount , and that professional investors, large corporations, financial institutions, and government agencies are excluded
Which legal entity will be signing the contract from Japan?
Here's the main point. Even within the same brand, different companies operate in different regions . While some companies within the group as a whole hold CySEC and ASIC certifications, Japanese residents almost always contract with offshore companies . This is stated in the footer or regulations page of their official website.
| Contractor | Officially listed corporations and regulations | Is it eligible for FSCS/ICF? |
|---|---|---|
| XMTrading | Tradexfin Limited/ Seychelles FSA (SD010) Fintrade Limited/ Mauritius FSC (GB20025835) | Not applicable(not regulated by FCA or CySEC) |
| Exness | Exness (SC) Ltd/ Seychelles FSA (SD025) | Not applicable |
| FXGT | GT Global Ltd/ Seychelles SFSA (SD019), South Africa FSCA (48896), Vanuatu VFSC (700601) | Not applicable |
| TitanFX | Mauritius FSC | Not applicable |
| ThreeTrader | ThreeTrader Global Limited/ Vanuatu VFSC (40430) | Not applicable |
| Tradeview | Tradeview LTD/ Cayman Islands CIMA (#585163) | Not applicable |
| HFM(as stated on the insurance policy) | HF MARKETS (SV) LTD/ Saint Vincent and the Grenadines | Not applicable |
| AXIORY | Axiory Global/ Belize FSC (000122/29) Tradit Ltd/ Mauritius FSC (GB21026376) | Not applicable |
| XS | The group includes CySEC (412/22) and ASIC (374409), as well as Seychelles FSA (SD089) and many others. | It depends on the business entity that enters into the contract(the official statement clearly states that "the terms of the compensation system vary depending on the business entity"). |
The companies themselves acknowledge this point.XS, explicitly states thatVantagealso "the regulatory provisions regarding investor compensation schemesXSvary depending on entity you are involved with " and writes that "the level of protection varies depending on the entity holding the account and the applicable customer agreement."
In other words , the explanation "You can rest assured because they have an FCA license" only applies to those who have a contract with that company . Before opening an account, please check the name of the contracting company listed in the terms and conditions
*In the previous version, FCA was described as "guaranteeing up to approximately $81,250 per person" and CySEC as "upper limit approximately $16,875 per person," but the upper limit for FSCS is £85,000 and for ICF it is 90% and €20,000. Since the fixed notation in yen changes with the exchange rate, from now on we will use the currency indicated by the official source . We have also removed the statement from the previous version that "if you have a license, the government will guarantee your assets ." Offshore licenses do not have compensation funds equivalent to FSCS or ICF.
What actually happened to the companies that went bankrupt? | GEMFOREX's record
The collapse of overseas forex brokers has actually happened.Moreover,even more than two and a half years after the service was suspended, the liquidation processwas still underway. We will examine the "aftermath," which is not visible from the system's explanation alone, by reviewing official announcements.
The official website is currently displaying a "bankruptcy notice."
GEMFOREX was a broker with many Japanese users. Currently,accessing the old domain redirects you to a different domain, and all that is displayedis a single page announcing bankruptcy proceedings.
Bankruptcy Proceedings Announcement
We hereby give notice that, as a consequence of the cessation of our services effective May 31, 2023, we were rendered insolvent and are presently subject to bankruptcy proceedings. Said proceedings are being conducted in accordance with the laws of St. Vincent and the Grenadines, pursuant to Section 66 of Chapter 151 of the Limited Liability Companies Act.
As such proceedings are already in progress, we are unable to correspond individually with creditors at this time. Upon completion of the assessment and compilation of our assets, including outstanding accounts receivable, the appointed liquidator shall communicate with creditors by electronic mail.
Source:Gemtrade LLC Official "Bankruptcy Notice"(Dates of notices confirmed February 15, 2026 and September 24, 2026)
There are three main points
- The service was discontinued on May 31, 2023, and the company becamerendered insolvent.
- The procedure is proceeding in accordance with the laws of Saint Vincent and the Grenadines (Limited Liability Companies Act, Chapter 151, Section 66)
- Because the process is ongoingwe cannot contact creditors individually. Once the asset valuation and consolidation are complete,the liquidator will contact them by email.
The date of this notice is February 15, 2026. More than two and a half years have passed since the service was shut down, and it is clear that they are still at the stage of "the liquidator will contact you."
Even if it says "separate management," this result can still occur
This is the most important point I want to convey in this article.Even bankrupt companies were introduced under the assumption that they were managing their funds while they were in business.Our previous article also listed GEMFOREX as a company that "segregated accounts" its funds.
As we saw in the section on trust protection , segregated management means that money is kept separate within the company . If the company enters bankruptcy proceedings, customer money will also be handled within those proceedings . If the money is kept outside the company, as in a trust, it will be less affected by these proceedings. This is precisely where the difference between the two becomes apparent .
And one more thing.Just as important as whether you'll get your money back is "when" you'll get it back. Bankruptcy proceedings involve investigating and consolidating assets and identifying creditors.It's not something that can be resolved in a few months.
*In previous versions of this website, GEMFOREX was included in the comparison table of fund management methods.Since the company has officially announced that it is undergoing bankruptcy proceedings, it has been removed from the comparison in this revision and is now treated as a case of bankruptcy. We apologize for any inconvenience caused by the previous information.
If you want to compare the safety of brokers from multiple perspectives, ouroverseas forex safety rankingincludes scoring based on regulations and operating history.
Things to consider when choosing a broker that does not offer trust protection
Only 3 out of 14 companies explicitly state that they offer "trust" services, and even those 3 companies do not disclose the name of the bank they entrust their funds to or the maximum trust amount.In reality, you will be "choosing from companies where you cannot rely on trust protection." Here are some things you can check in that situation, in order of ease of verification.
① Is there a page explaining fund management on the official website?
This is the simplest and most clearly differentiated item.Some companies have a dedicated page explaining it, while others don't mention it anywhere.
Of the 14 companies reviewed,HFM,FXGT,XS, MiltonMarkets,MyfxMarkets,Vantage, Tradeview, and XMTrading explained the security of their funds on dedicated pages. On the other hand,TitanFX had it on its "Regulations" page, andAXIORYin its English FAQ, making it difficult to find.BigBosson its "Guidelines" page, which contains important usage information. The fact that the information is difficult to find doesn't necessarily mean that they don't manage it properly, butwhether the information is available in a place that users can check beforehandis a factor to consider.
② What is the source of the funds for "compensation"?
As you can see from the four classifications , please look at the type , not the amount . Here's how to check:
| Points to look at | How to check |
|---|---|
| Is it insurance or a fund? | Is it written as "insurance" or "compensation fund"? |
| If it's insurance, what kind of insurance? | Professional Indemnityis for corporate liability. For customer damages, the scope and deductible amount are specified. |
| Lower limit/deductible amount | Is there a condition that "damages exceeding XX"? |
| Limitation of target audience | Are there any restrictive terms such as "eligible clients" or "qualified customers"? |
| Exclusions | Has insolvency been excluded? |
③ The corporation entering into the contract and its location
Look at the company name listed in the terms and conditions, not the brand name.Often, the footer of the official website will state, "◯◯ Limited is subject to △△ regulations," and youwhich company the account you are opening from Japanbelongs to there.
If the location changes,the laws that apply in the event of bankruptcy also change. GEMFOREX's bankruptcy proceedings are proceeding under the laws of Saint Vincent and the Grenadines because it was a corporation registered there.
④ Diversify the amount of money you keep in your account
If you assume that the system won't protect you, then the most realistic approach is to reduce the amount of money you leave deposited in the first place
- Only deposit the margin required for trading, and withdraw profits frequently
- Test the withdrawal history (number of days until funds arrive) with a small amount before increasing the amount
- Instead of concentrating on one company, distribute it among multiple companies
Once you withdraw your funds, they become unrelated to the broker's bankruptcy. In some situations, this is more effective than worrying about whether or not there is trust protection. Information regarding withdrawal availability and delays is organized by reason in the section on overseas forex withdrawal refusals
⑤ Don't judge solely on the length of operation
We often see explanations that "a long operating history equals safety," but GEMFOREX was a broker widely used in Japan since the 2010s . Operating history is just one piece of information and does not guarantee safety on its own .
Conversely, there's no need to avoid a company simply because it has a short operating history.The amount and specificity of publicly available informationare more useful as a basis for verification.
FAQ
What is trust protection?
This system involves depositing and managing customer funds with a trust bank located outside the FX company.Because the deposited funds become trust assets,they cannot be seized by the company's creditors even if the FX company goes bankrupt. However,this system does not compensate for trading losses. Only the amount remaining in the account at that time is protected.
What is separate waste management? How do you pronounce it?
It is pronounced "bunbetsu kanri".This refers to an FX company managing its own funds separately from customer funds.The difference from trust protection is whether the money leaves the company. With segregated management, the company holds the funds separately itself, soif the company enters bankruptcy proceedings, the funds will be handled within those proceedings.Separate management isa legal term, and its meaning is almost the same as segregated management (the Financial Instruments and Exchange Act expresses it as "managing separately from the company's own assets"). In English, it is written as segregated accounts / segregation of client funds.
What is the difference between a customer segregation trust and a customer segregation trust?
The types of transactions covered are different. In the Cabinet Office Ordinance concerning Financial Instruments Business, etc., customer segregation trusts are defined in Article 143-2 and cover currency-related derivative transactions (= over-the-counter FX) and crypto asset-related derivative transactions. Customer segregation trusts are defined in Article 141 (Article 43-2, Paragraph 2 of the Act) and cover securities-related transactions. For FX accounts, it is the customer segregation trust that is relevant . Note that for commodity-related market derivative transactions, there is the commodity customer segregation trust in Article 142-5.
Which overseas forex brokers offer trust protection?
Of the 14 companies we investigated, only Tradeview,AXIORY, andThreeTraderused the term "trust" in their explanations (confirmed in September 2026). Tradeview's Japanese page states, "Tradeview entrusts customer account funds to a bank in accordance with financial regulations, keeping them completely separate from our own capital and managed separately by GC PARTNERS, an independent accounting firm." Most other companies use segregated management , andAXIORYis the second company to mention trusts , explaining in its English FAQ that "customer funds are managed separately from our company's funds at a trustee bank ." However , neither company discloses the name of the trustee bank, the maximum amount, or the composition of the beneficiaries . BigBoss's official guidelines state that "we hold funds equal to the amount of your investment funds in segregated custody," but its terms of service do not include a clause on segregated management; on the contrary, it stipulates that customer funds will be held as collateral .
How much will be covered by the trust protection?
It varies depending on the provider; some have no upper limit, while others do.Also, even if it says "compensation," there are four types of funding sources, andsome do not function in the event of bankruptcy. For statutory compensation funds,FSCS (UK) provides £85,000 per person/company, andICF (Cyprus) provides 90% of the claim amount or €20,000, whichever is lower. However,these generally do not apply to offshore companies contracted by Japanese residents. For private insurance,XSa maximum of US$5 million for losses exceeding US$10,000, andVantagepublishes a maximum of US$1,000,000 per claimant (totaling US$50,000,000).However,Vantagehas a US$20,000 deductible per claimant, and it only applies in the event of bankruptcy, and trading lossesare not covered.
Why isn't trust protection mandatory for overseas forex trading?
The Japanese Financial Instruments and Exchange Act applies only to brokers registered with the Japanese Financial Services Agency.In domestic FX trading,Article 43-3, Paragraph 1 of the Financial Instruments and Exchange Actmandates segregated management, and the requirements for such trusts are stipulated in Article 143-2 of the Cabinet Office Ordinance. Overseas FX brokers are not subject to this registration and are therefore exempt. Each company is subject to the regulations of the country where it is based, andoptional under regulatory authorities that do not require trust protection. Since trusts incur ongoing costs such as trust fees, many brokers actually choose segregated management.
What happens to my deposited money if an overseas forex broker goes bankrupt?
It will be handled within the bankruptcy proceedings of that country, and it will take time. As an example, GEMFOREX (Gemtrade LLC) officially announced that it had become insolvent due to the suspension of services on May 31, 2023, and had entered bankruptcy proceedings under the laws of Saint Vincent and the Grenadines . Even as of the announcement dated February 15, 2026, it was still at the stage of "the liquidator will contact you by email once the asset valuation and consolidation is complete." In other words, not only is it uncertain whether you will get your money back, but when you will get it back as well. A realistic measure would be to keep only the funds necessary for trading in your account and withdraw profits regularly.
It says "You can rest assured because we are enrolled in the compensation fund," but is that really true?
It depends on what the fund covers.For example,the Financial Commission's compensation fund pays up to €20,000 per customer, but its regulationsexclude "bankruptcies affecting all of the broker's customers." Payments are made only ifa complaint is filed and an arbitration is issued but the broker fails to comply;it is not a system that can be used in the event of bankruptcy. The source of the funds is 10% of the monthly membership fees paid by member brokers, andif there are multiple claims and the amount is insufficient, it will be divided equally among the claimants. There is also a deadline of 45 days from the time of the incident to file a complaint.
How can I assess the safety of FX brokers available to residents of Japan?
Please differentiate between two points: "Are you protected by a system?" and "Who are you contracting with?". Domestic FX brokers registered with the Japanese Financial Services Agency are required to manage funds separately through trusts under Article 43-3, Paragraph 1 of the Financial Instruments and Exchange Act and Article 143-2 of the Cabinet Office Ordinance , and even the procedures for returning funds in the event of bankruptcy are institutionalized. On the other hand, overseas FX brokers are not registered in Japan and are therefore exempt from this obligation, and are subject to the regulations of the country where each company is based . When using overseas FX, please check the following three points before opening an account: ① whether there is a page explaining fund management on the official website, ② whether the source of "compensation" is a statutory fund, insurance, or a dispute resolution body fund , and ③ the name and address of the corporation you are contracting with . In addition, it is practical to limit the amount of money in the account to what is necessary and to withdraw profits frequently.づけられ、破綻時の返還手続きまで制度化されています。一方、海外FX業者は日本の登録がないためこの義務の対象外で、
Summary | Look at the "source of funds" and the "contracting corporation" rather than the amount
After investigating 14 companies, we foundthat the presence or absence of trust protection alone is not enough to make a judgment.Only three companies used the word "trust" in their explanation; most simply used segregated accounts. Furthermore, half of the systems advertised as having "insurance" do not function when the company goes bankrupt.
What you should look at is not the size of the amount, butthe source of the compensation fundsと、the location of the legal entity you have a contract with. Liability insurance covers company liability, and dispute resolution funds do not cover bankruptcy. Statutory compensation funds such as FSCS and ICFgenerally do not apply to accounts of offshore companies opened from Japan.
Furthermore, the most practical solutionto reduce the amount of money you keep in your account. As the GEMFOREX example shows,if a company goes bankrupt, it's uncertain not only whether your money will be returned, but also when it will be returned. If you withdraw your money, you can separate it from the company's situation.
If you want to compare overseas FX brokers based on their safety rankings, regulations, operating history, and withdrawal records, along with their fund management methods, please see the overseas FX safety rankings . For differences in regulations between overseas and domestic FX brokers, please see the differences between overseas and domestic FX brokers
Finally,if you reduce the amount of money you keep in your account, the lower your transaction costs per trade, the more money you'll have left over.Using cashback will return a portion of the spread with each trade, effectively lowering your costs.However, this only applies to accounts opened through the designated link; you cannot register an existing account later.
Lower transaction costs and increase the funds you keep: Check the account opening procedures to be eligible for cashback
