In accordance with the Financial Conduct Authority's (FCA) Client Money rules, all retail client funds (including cash balances, any unrealised profits and funds used as margin collateral) received by Saxo Markets are held in trust in one or more segregated bank accounts with the retail clients as beneficiaries. Consequently client funds are held separately from Saxo Market's own money and cannot be used by Saxo Markets in the course of its day-to-day business operations.
In the unlikely event of a default by Saxo Markets, retail clients will have their funds returned to them from the client bank accounts rather than become unsecured creditors of the firm.
To ensure that the amount of money held in the client bank accounts accurately reflects the account value of our segregated clients, Saxo Markets performs a comprehensive daily reconciliation and on the basis of this reconciliation processes any and all necessary bank transfers.
Financial Services Compensation Scheme (FSCS)
The FSCS is the UK's statutory fund of last resort for customers of UK authorised financial services firms. This means that the FSCS can pay compensation if a member firm, such as Saxo Markets, is in liquidation and unable to pay client compensation claims against it, including where there is a client money shortfall. In the unlikely event there was a shortfall in the client money account, individual Saxo Markets clients would be able to claim up to a maximum of £85,000 per person from the FSCS.
If a bank holding client money goes into liquidation the losses would be shared by all clients in proportion to their share of Saxo Market's overall client money position. In respect of a UK authorised bank, these losses would be covered by the FSCS up to a limit of £85,000 per person, per banking group for each individual Saxo Markets client.
Please, read more about Client Money Protection on our web page.