Yea, that's the problem. panic .Originally Posted by ;
That is the exact purpose of Compensation Funds around the world. (and bond outs) To prevent the fear of rushing to withdraw
deposits in the Banks, which of course trigger real astrophe. So, they guarantee certain amount to each client.
Regarless their place of residence (replying your question about Europeans just). But people generally anxiety anyway,
including those reading these posts.
But forex broker generally aren't exposed to same the issues of their Banks, Banks are holding Bonds (Cyprus Banks hold a lot
Greeek bonds) , Real Estate mortgages, etc.. Materials what have lost value in recent decades. So, in the event that healthy investors
start withdraws their cash, The banks only end up with the awful newspaper, and in trouble.
Forex Broker hold just Client's cash an usually deposited with their Liquidity providers, that in many cases are major Banks
like Barclays you said. So, very far in a different universe.
Therefore, even in the event that for some idiotic reason , A forex broker has a Cyprus bank as their Liquidity supplier, and has clients
cash there, the Compensation Fund still protects the client.
Finally, that's why is essential to work with Broker who are in states that this Funds extend gains to forex traders,
like the Swiss, UK, and several EU states. Nonetheless, it is Interesting that many traders have more interest in regulated brokers
then this Compensations Funds. Australia is the biggest example, it is well known that Australia has a great and rigorous regulations and rigorous enforcement of them... but in case that something happens, NO ONE will give you a penny of your own investmente, since
they don't a a Fund there. In the other hand, everybody may matter that Cyprus Regulations isn't so rigorous, but what, Clients are insured by the Cyprus Fund.
So, relax. Ask your brokers a) where the clients cash is b) if still insured by the reparation Fund.
J.