Starting this topic as most people on this site are hobby traders and not professionals. Ive been a profrssional trader for 2 years now, and would like to give insight to the retail trader. This is to ensure hobby traders understand the retail fx world. REGARDLESS OF THE BROKER, UNLESS YOU TRADE FOR AN INVESTMENT BANK,HEDGE FUND OR A LARGE MA THEN YOUR FUNDS ARE NOT PROTECTED WHATSOEVER. Retail brokers trade against their clients no retail broker passes trades onto the interbank market. When a broker says your funds are protected by cftc, sec or whatever - the fact is that only that broker is registered, your funds are not protected whatsoever. This is because there is no regulated exchange. Unless you trade actual financial securities then that is different, if you trade stocks then yes you are protected. This includes brokers even like "interactive brokers".