The main third-party risk when it comes to trading is a risk of the Forex broker or the trading platform where clients set up their accounts and we trade through those accounts. If a broker goes bankrupt, there is a slight chance that funds may not be recoverable. However, under ASIC guidelines, companies must keep clients funds in separate segregated bank accounts to their own business running costs. There’s also the risk of the broker being hacked. However, most brokers have very advanced IT departments that are continually improving the security of their systems.
The chance that a broker who is regulated by ASIC in Australia, could run away with the money are slim to none. So it’s not really an issue. Some brokers do trade against you. However, if you have consistent strategies that work or fundamental principles which don’t change over time, it helps reduce that risk. That symbiosis capital we’ve vetted and built strong relationships with a number of Australian regulated brokers that have each been in business for a minimum of eight years. They all have offices in Australia and whole Australian financial services licenses. And they’re all regulated by ASIC, which is one of the world’s leading regulatory bodies in financial services. To minimize the risk of a single point of failure, we give our clients the option to spread their funds across a number of different Forex brokers we work with.