Safeguarding Funds and Preserving Assets
Ask where customers’ funds are held, whether they are segregated from the company’s funds, what the withdrawal mechanism is, and which party is responsible in the event of a shortfall or shutdown. Do not confuse protecting customers’ funds with protection against market losses; the former relates to holding funds and insolvency or mismanagement under specific conditions, while the latter does not mean that a losing trade will be compensated.
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