"I want to know how overseas forex brokers manage funds." "What happens to my funds if an overseas forex broker goes bankrupt?" "What is the difference between trust protection and segregated accounts?" To start trading with overseas forex, you need to deposit investment funds with the forex broker. Therefore, you may have questions about how your deposited investment funds are managed and whether they are managed safely. There are two main fund management methods used by overseas forex brokers: trust protection and segregated accounts. Trust protection is a method of managing funds received from investors by depositing them with a trust bank. On the other hand, segregated accounts is a method of managing investor funds separately from the company's own operating funds without using a trust bank. This article clearly explains the characteristics and differences of trust protection and segregated accounts, as well as points to consider when choosing an overseas forex broker. We also answer frequently asked questions about trust protection in overseas forex, so please read to the end. Contents 1. What is trust protection in overseas forex? Explanation of the difference from segregated accounts 1.1 List of overseas forex brokers that support trust protection and segregated accounts 1.2 What is trust protection in overseas forex? One type of "fund management" 1.3 What is the difference from segregated accounts? 2. Is trust protection safe? Three points to consider when choosing an overseas FX broker 2.1 ① Does it have a highly secure financial license? 2.2 ② Does it have a long operating history and a proven track record? 2.3 ③ Does it clearly state on its official website that it uses segregated accounts? 3 Q&A on trust protection in overseas FX 3.1 Q. How much is compensated by trust protection? 3.2 Q. Why is trust protection not mandatory in overseas FX? 3.3 Q. How can I identify an overseas FX company that is less likely to go bankrupt? 4 Summary What is trust protection in overseas FX? Explanation of the difference from segregated accounts Here, we will explain the difference between trust protection and segregated accounts in overseas FX. List of overseas FX brokers that support trust protection and segregated accounts The overseas FX brokers that support trust protection and segregated accounts are shown in the table below. Overseas Forex Company Name Asset Management Method Axiory Trust Protection Tradeview Trust Protection Myfx Markets Segregated Accounts GEMFOREX Segregated Accounts Titan FX Segregated Accounts HFM Segregated Accounts Exness Segregated Accounts XM Segregated Accounts It is clear that many overseas forex brokers manage funds through segregated accounts. Trust protection in overseas forex is one type of "fund management" Trust protection is one type of asset management to guarantee the assets entrusted by investors. With trust protection, the assets entrusted are not managed by the company itself, but by an external trust bank. By depositing the funds with a trust bank separately from the operating funds of the overseas forex company, investors' funds are protected even if the overseas forex company's management deteriorates. However, it should be noted that trust protection is not a guarantee of principal, but rather an asset management method to guarantee assets after overseas forex trading. All forex companies licensed by the Japanese Financial Services Agency have trust protection All domestic forex companies licensed by the Japanese Financial Services Agency are subject to trust protection. Overseas forex companies are not required to have trust protection, but domestic forex companies licensed by the Financial Services Agency are required to have trust protection to guarantee investors' assets. Trust protection is one of the indicators of the safety of an FX company, and since trust protection is mandatory in Japan, domestic FX companies are considered safer than overseas FX companies that do not have it. It is useful in the event that an FX company goes bankrupt... Continue reading What is trust protection in overseas FX? We will also introduce a comparison with segregated accounts.