Which brokers hold client money in segregated accounts?
Verdict
- Pepperstone, our top pick for UK traders, holds client money in segregated accounts at top-tier banks, and its UK clients also get FSCS cover up to £85,000 if eligible.
- Every Pepperstone entity we checked publishes segregation: the UK, German, Cypriot and Australian companies all state it, with different compensation behind it.
- Segregation separates your money from the broker's; it does not protect you from trading losses or guarantee every pound comes back in a failure.
- For other UK brokers, read the client-money page of the exact FCA-authorised company you would sign with.
Segregation is the first question to ask of any broker, because it decides whether your deposit sits apart from the firm's own money. Pepperstone states it for every entity we checked, which is why it leads our UK list.
How Pepperstone UK holds your money
Pepperstone Limited (FCA 684312) says UK client funds are held in segregated accounts with top-tier banks. Eligible clients are additionally covered by the FSCS up to £85,000. Deposits arrive by card, Apple Pay, Google Pay or bank transfer from an account in your own name, since Pepperstone does not accept third-party payments, and withdrawals go back to the source.
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Segregation across Pepperstone's regulated companies
The wording and the safety net behind it change by entity. UK residents normally contract with Pepperstone Limited, but if you move abroad, your account may sit elsewhere.
| Entity | How client money is held | Backstop |
|---|---|---|
| Pepperstone Limited, UK (FCA) | Segregated accounts at top-tier banks | FSCS up to £85,000, eligible clients |
| Pepperstone GmbH, Germany (BaFin) | Segregated trust accounts | EdW 90% up to €20,000; deposit insurance up to €100,000 if the holding bank fails |
| Pepperstone EU Limited, Cyprus (CySEC) | Segregated accounts at EU banks | ICF, lower of 90% or €20,000 |
| Pepperstone Group Limited, Australia (ASIC) | Retail funds segregated at top-tier banks | None named; Corporations Act applies, 'no guarantee that all funds will be returned' |
What segregation protects, and what it doesn't
- It protects your deposit from being treated as the broker's own money.
- It does not protect you from losses on your trades.
- It does not by itself guarantee full repayment if the firm fails; that is where a compensation scheme such as the FSCS comes in.
- Professional clients at Pepperstone UK lose negative balance protection, so they can owe more than their deposit.
Checking segregation at other UK brokers
Our verified data covers segregation only for Pepperstone. Capital.com, IG, CMC Markets and the other FCA firms all publish client-money information on their UK sites; read it before you deposit.
- Identify the company on your client agreement and its FCA reference (for example Capital Com (UK) Limited, 793714).
- Find its client-money or 'how we protect you' page.
- Check where funds are held and which compensation scheme applies.
- Pay in only from an account in your own name.
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Sources
Client-money terms as published by each Pepperstone entity.
Does Pepperstone segregate client funds?
Yes. Pepperstone UK says client money is held in segregated accounts with top-tier banks, and its German, Cypriot and Australian entities publish segregation too.
Is segregated money guaranteed if a broker fails?
Not fully. Segregation keeps it separate from the firm's money; whether you are compensated for any shortfall depends on the scheme, which for Pepperstone UK is the FSCS, up to £85,000 for eligible clients.
Can I fund a broker account from someone else's card?
Not at Pepperstone UK, which does not accept third-party payments.
CFDs and spread bets are leveraged, complex products, and you can lose money quickly. Pepperstone Limited reports that 73.6% of its retail investor accounts lose money trading them; other providers publish their own figures. Nothing on this page is investment or tax advice.