IC Markets and ECN brokers

[jacques de villiers]

I am looking at using IC Markets in Australia as my preferred broker as they have good reputation BUT like most brokers, it is not easy to find a reputable and transparent broker. I was doing some research on them and this is what I came up with...

According to the company policy; Clients' money is pooled together within a trust account and so an individual client's balance may not be protected if there is a default by another client which causes a loss to the overall trust account. Under the Corporations Act and the Corporations Regulations, we may pay money out of a trust account in the following circumstances:

Could someone break this down to me layman terms? My main concern is losing all my funds due to a broker going bankrupt for some reason and then not being able see my money. I have read to many horror stories online with other brokers going broke and then the traders are forced to take action and go to court to try and get some of their money back.


I guess the reason why i do contemplate trading the futures market is because it is a very well regulated and transparent compared to the murky world of forex trading.

Any opinions or advice would be much appreciated. Thank you.

 

[Pharaoh]

The best option is "segregated accounts" where client money is independent of the brokerage and of other clients. What you describe sounds like client money is not being protected as well as it could be.

 

[RahmanSL]

There is/are a few thread(s) over at DonnaForex sites with lively discussion on ICMarkets and other brokers....also some very active IBs to reply to all/most of your questions.

 

[Pharaoh]

And you can always trust an IB to provide complete and honest answers regarding how good a broker is.