Security of Customer Funds, No Segregation
Generally customer funds are not held in segregated customer accounts separate from the FDM. Accordingly, in the event of a bankruptcy at a FDM, the customer funds would be administered by a trustee according to the US bankruptcy laws (if based in the US). Customers would be entitled to a pro rate distribution of available assets. There is no guarantee they would be able to recover all of the customer funds.
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