{"version":"1.0","provider_name":"For overseas forex cashback services, try Money Charger","provider_url":"https://money-charger.com/en/","author_name":"admin","author_url":"https://money-charger.com/en/author/admin/","title":"What is trust protection for overseas forex trading? We'll also compare it to segregated accounts - Money Charger (Overseas Forex Cashback Service)","type":"rich","width":600,"height":338,"html":"<blockquote class=\"wp-embedded-content\" data-secret=\"30mbIK6oIT\"><a href=\"https://money-charger.com/en/information/efx-trust-maintenance/\">What is trust protection for overseas forex trading? We&apos;ll also explain how it compares to segregated accounts</a></blockquote><iframe sandbox=\"allow-scripts\" security=\"restricted\" src=\"https://money-charger.com/en/information/efx-trust-maintenance/embed/#?secret=30mbIK6oIT\" width=\"600\" height=\"338\" title=\"&amp;quot;What is trust protection for overseas forex trading? We&amp;#39;ll also introduce a comparison with segregated accounts.&amp;quot; &#x2014; Money Charger, your overseas forex cashback service\" data-secret=\"30mbIK6oIT\" frameborder=\"0\" marginwidth=\"0\" marginheight=\"0\" scrolling=\"no\" class=\"wp-embedded-content\"></iframe><script type=\"text/javascript\">\n/* <![CDATA[ */\n/*! 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You may have questions about how your deposited investment funds are managed and whether they are managed safely. There are two main methods of fund management 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. What is trust protection in overseas forex? Explanation of the difference from segregated accounts Here, we explain the difference between trust protection and segregated accounts in overseas forex. List of overseas forex brokers that support trust protection and segregated accounts The overseas forex 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 domestic FX companies, which are required to have trust protection, are considered safer than overseas FX companies that do not have it. Useful in the event that an FX company goes bankrupt Even if an overseas FX company that has implemented trust protection goes bankrupt, the assets deposited by investors are guaranteed to be fully refunded. If an overseas FX company goes bankrupt, the process by which the assets deposited by investors are refunded from the trust bank is as follows: ① Investor → Deposit to overseas FX company ② Overseas FX company → Deposit to trust bank ③ Overseas FX company goes bankrupt, assets deposited in the trust bank are unavailable ④ Trust bank → Refund to beneficiary agent such as a lawyer ⑤ Beneficiary agent → Refund to investor Trust protection protects investors' assets by depositing them in a trust bank separately from the operating funds of the overseas FX company. Therefore, even if an overseas FX company goes bankrupt, the assets of investors deposited in the trust bank will not be seized. Caution that there is no compensation for losses due to exchange rate fluctuations Trust protection is a mechanism to protect investors when an FX company goes bankrupt, so it does not compensate for losses due to exchange rate fluctuations. Therefore, if the margin maintenance ratio falls due to a sudden change in exchange rate, losses may occur. The difference from segregated accounts is... Segregated accounts are a method of asset management that clearly separates a company's operating funds from investors' assets. Unlike trust protection, it manages assets without using a trust bank, so overseas forex brokers must manage both operating assets and investor assets. Therefore, if an overseas forex broker's business deteriorates, both operating assets and investor assets may be seized. [...]"}