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Home > Law Advice > Commodities Law > Funds Protected
Commodities Law
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Are my funds in my account protected?

Your account is not insured unless the broker has purchased private insurance. However, funds that you deposit with your commodity brokerage firm in an individual account, to trade on US commodity exchanges must be segregated (held separately) from any of the brokerage firm's own funds. The amount segregated will increase or diminish as you make or lose money from your trading.

However, if the brokerage firm becomes insolvent and there are insufficient funds available to cover the obligations to all of its customers, even though the brokerage firm is required to segregate your funds, you may still not be able to recover the full amount of any funds in your account.


Related Information
» General Questions
» Process of trading
» Margin
» Legal protection
» Disclosure statement
» Traders
» Resources

Topics Related To Commodities Law
» Financial Law
» Banking Law
» Broker Disputes
» Commodities Law
» Investment Terms
» Raising Capital
» Securities Law
 
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