Here is an explanation of trust-based custody and segregated accounts. Trust-based custody is a system in which a third-party trust bank manages client funds, while segregated accounts is a system in which a broker manages its own funds and client funds separately. In the event of a broker’s bankruptcy, trust protection guarantees the return of funds, whereas segregated accounts alone do not provide such a guarantee. Furthermore, if a broker is a member of The Financial Commission—an external dispute resolution body—it is eligible for compensation of up to 20,000 euros per case for disputes such as withdrawal issues.
Key Points of This Article
- Trust Custody = Managed by a third party; includes a guarantee of return in the event of bankruptcy / Segregated Management = Managed separately within the company; no guarantee
- The Financial Commission is an external dispute resolution organization that can be used free of charge.
- Brokers participating in the REBATE ONE program include exness, Axi, Vantage, ThreeTrader, and Titan FX (as of August 2026).
Why Is a Cash Management System Important?
If a broker goes bankrupt, the outcome depends largely on how customer funds were managed. There have actually been cases where funds deposited with brokers that had inadequate management systems were not returned. Whether or not a broker is required to hold funds in trust depends on the country where the broker is registered and the applicable regulations. Therefore, you need to verify each company’s fund management system yourself.
The Difference Between Trust Security and Segregated Management
| Item | Trust Security | Separate Management |
|---|---|---|
| Administrator | Third-Party Trust Bank | The broker itself (segregated account) |
| Reimbursement in the Event of Bankruptcy | Warranty Included | No guarantee (may not be refunded) |
| Audit Transparency | Periodic Audits by Trust Banks | Reliance on contractors' self-regulation |
| Recruitment Status | A small number (high cost) | The Majority of FX Brokers |
It is important to note that segregated management is a “mechanism to prevent misappropriation,” not a “mechanism that guarantees repayment.” When using a broker that relies solely on segregated management, membership in a dispute resolution organization—as explained below—serves as a factor in assessing safety.
What Is the Financial Commission?
The Financial Commission is an independent external dispute resolution (EDR) body that arbitrates disputes between traders and brokers. Traders can file claims free of charge regarding issues such as slippage, improper order execution, and denied withdrawals.
- Compensation Fund: If a member broker fails to comply with an award, compensation is available up to a maximum of 20,000 euros per case
- Cost: Free for traders
- Time to Resolution: Cases are generally resolved more quickly than those filed with financial regulatory authorities.
REBATE ONE Broker Affiliation Status (as of August 2026)
The following five companies are members of the Financial Commission:
- exness
- Axi
- Vantage
- ThreeTrader
- Titan FX
*Pepperstone voluntarily withdrew from the program in February 2026 and is no longer eligible for compensation. Since membership status is subject to change, please check the member list on The Financial Commission’s official website for the latest information.
Comparison of Major Social Security Systems
| Organizations and Systems | Target | Coverage Details |
|---|---|---|
| The Financial Commission | Clients of Affiliated Brokers (International) | Compensation Fund of up to €20,000 per claim |
| FCA/FSCS (United Kingdom) | Customers Subject to U.K. Regulations | FSCS Compensation Scheme |
| CySEC/ICF (Cyprus) | Customers Subject to European Regulations | Investor Compensation Fund |
| ASIC (Australia) | Customers Subject to Australian Regulations | Strict Conduct Regulations (Compensation Provided by the Service Provider) |
Many FX brokers use different licenses across multiple entities, and the protections that apply vary depending on the entity through which you open your account (which is automatically determined by your place of residence). Be sure to check which entity and regulatory authority your account falls under when you open it.
FAQ
Are brokers that only handle segregated accounts risky?
While this does not necessarily pose an immediate risk, there is no guarantee of a refund in the event of bankruptcy. Please make your decision based on a comprehensive evaluation of the company’s track record, licensing status, and membership in dispute resolution organizations.
How do I file a complaint with The Financial Commission?
You can file a claim for free using the claim form on the official website. The standard procedure is to first contact the broker’s support team and file a claim only if the issue cannot be resolved.
Is compensation from the fund guaranteed?
The compensation fund is used only in cases such as when a member broker fails to comply with an arbitration award. This is contingent upon the trader’s claim being upheld in the arbitration.
Summary
When choosing a broker, please verify the following three points: (1) the method of fund management (whether funds are held in trust or segregated), (2) financial licenses, and (3) membership in dispute resolution organizations such as The Financial Commission. REBATE ONE works exclusively with brokers whose reliability has been verified. Click here for a list of supported brokers.
