The supervision of NFA and CFTC, or the supervision of the UK Financial Supervisory Authority, is the strictest.
Take fxsol as an example.
All the funds provided by FX Solutions customers are stored in very safe financial institutions with top-level credit reliability. The financial institution chosen to store clients' funds is the world's top bank, Bank of JPMorgan Chase. The customer's exclusive margin account is completely separated from the company's funds and can only be used for trading purposes and cannot be used for other purposes. The account is subject to NFA review and strict supervision.
Under the supervision of nfa cftc, the following two conditions must be observed.
The deposit of the first customer is separated from the dealer's account and must be supervised by a third party, namely the cooperative bank. For example, the funds of fxsol customers are separate from those of Morgan Bank customers and fxsol itself. In this way, even if the dealer goes bankrupt, the bank will bear the risk of customer account loss caused by the bankruptcy of foreign exchange dealers. Simply put, the dealer went bankrupt, and your money is still in your bank account, or your money.
The second point is to have an insurance company to provide credit insurance for this custodian bank. The insurance company bears the risk of customer account loss caused by the bankruptcy of the agreed bank.
These are only the two most important principles, and there are many other requirements, such as requiring foreign exchange dealers and banks to deposit a certain amount of risk margin in the US Central Bank, so as to reserve the final punishment right for illegal operations of foreign exchange dealers and banks. Wait a minute. If you can't find it, you can search the foreign exchange supermarket to find the safety of the funds.