5000$ in segregated account at alpari

[jluanda]

Hi all,

I was reading Alpari (UK) Ltd Announces Record Customer and Forex Trading Volume Growth in 2008, Alpari Brand's 10th Birthdaythat on alpari UK web site. What they say is, it seems, that if you open an account there, should Alpari have trouble, the first 5K of this account are protected on a segregated account.
So, at least if you have limited money on your account, you should not fear a real problem.
Did I understand that right ? I must say that I am not 100% sure I get right this segregated account thing (who is responsible for that money?...).
Anyway, that's a quite cool regulation, it means if you go for a regulated broker, your money won't vanish madoff-style

 

[ForexExpert]

It seems like that's exactly what they're saying, $5000 of your account balance is guaranteed no matter what.

 

[garethj]

Sounds good, especially for a newbie. 5K is much more than I'll put in an account.
At least for some years before I become a real pro trader Seriously, in those quite uncertain times, segregation is a good protection.

 

[ns1000]

It's not exactly generous. Many UK brokers will offer segregation of the full balance (although some limit this to funds not taken up as deposit).

 

[garethj]

It's not exactly generous. Many UK brokers will offer segregation of the full balance (although some limit this to funds not taken up as deposit).

Thx for the tip. Just to be sure, are they really offering the same kind of protection, where you are 100% sure you'll get back the segregated money ?

Even if I am quite new to forex, I've seen and read son many scam promotions that I am now super cautious about everything. Like, it's easy for a company to say your money is safe, but much harder to prove it

 

[G&C]

What are Alpari (UK) doing with the balance of their clients monies then?! As an FSA registered firm in the event of any default the Financial Services Compensation Scheme (FSCS) kicks in, it's the UK's statutory fund of last resort for customers of a financial services firms. The scheme covers investments up to stg 48,000 per person. It doesn't tally with their $5k guarantee.