Client Money Protection
At Saxo Markets the safety and security of our clients' funds is of the utmost importance.
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.
Saxo Markets carries out comprehensive due diligence on the banks that it intends to hold client money with, not only when selecting the bank but also on an on-going basis. Banks are chosen, amongst other things, on the strength of their balance sheet, their credit rating and risk outlook.
As required by the FCA rules, Saxo Markets submits a monthly Client Money & Assets Return to the FCA and Saxo Market's client money arrangements are audited by our independent auditor on an annual basis, with a copy of their report provided to the FCA.
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.
Further information about compensation arrangements is also available from the Financial Services Compensation Scheme. Contact by post at:
Financial Services Compensation Scheme,
PO Box 300, Mitcheldean,
If you have any further queries about the security of your funds please contact us on 020 7151 2000.