Recently, brokerage firms have started offering clients a new service. This is the opening of a separate account. A ring-fenced account is a separate account in which a trader, a client of a brokerage firm, may retain its capital or part of it separately from the broker’s account.
Segregated account insures the entrepreneur in the event of unforeseen situations related to the activities of the brokerage company. If the brokerage company ceases trading activities, the trader’s money will remain in his own account and will not disappear.
In Western countries this practice is common. The State therefore protects ordinary traders against possible actions relating, for example, to the bankruptcy of brokers.
In the Russian Federation at the moment only bank deposits of natural persons in the amount that should not exceed 1.4 million rubles are insured. And in the event of a bank ruin, a customer of such a crack company will be able to get a maximum of 1.4 million. Despite the fact that he had a much larger sum in his account at this bank.
Brokerage firms in Russia Offer open account segregation is not for 100% of the deposit amount, but in a ratio of 50 to 50 or 30 to 70 (70 percent remains in the client’s account). In addition to the brokerage firm in Russia,
segregated accounts can be opened at some brokerage banks. But this account will be listed on the bank platform. Can i call such an account independent?
However, a ring-fenced account ensures the protection of the trader’s capital.
If a businessman has a desire to trade on the Moscow Stock Exchange, he can open a personal brokerage account on the website of a reliable broker. The Moscow Stock Exchange gives you the opportunity to trade on domestic and foreign financial markets, stock markets and commodity platforms.
However, the service of opening a separate account is an expensive pleasure. The cost of commission to maintain a segregated account per month is in the region of fifty thousand rubles.
For professional entrepreneurs, this service is very useful because the risks associated with the business, thanks to a separatecontracted account are reduced.
To open a separate account, you must first open a regular brokerage account. And then apply for the service of segregated Account.