Client funds held in bank accounts separate from the broker's own operating capital.
Segregation means that in the event of broker insolvency, client deposits cannot be used to pay company creditors. It is a key regulatory requirement under FCA, ASIC, and CySEC rules.
Some brokers go further with 'tier-1 bank segregation', holding funds at named, rated institutions. Investors should verify segregation arrangements and any applicable compensation scheme limits before depositing.