Broker capitalisation

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    CapitalisationThe term broker capitalisation denominates the amount of net capital an online broker has.

    The forex market is the largest financial market and brokers will often serve many clients with high leverage at the same time. Thus, brokers must have sufficient capital to be able to handle the substantial volume.

    As a consequence, your trading account will be more secure when dealing with brokers who have adequate capitalisation and segregated accounts, as they are less likely to go bankrupt.

    Minimum capitalisation requirements set by regulatory bodies help keep the market more transparent and more secure for the participants such as retail traders.

    Some regulators publish the capitalisation of the brokers registered with them, so the traders can do their own due diligence on any particular broker.