Fund Administration

In a time where brokerage houses, banks and even governments are facing risks of insolvency, one can never be too safe when it comes to safety of their funds.

Therefore, we have taken extra caution, care and meticulous effort to give you complete comfort in the way we administer your funds.

Fund Segregation

Conventional brokerage houses use 1 account as their financial repository. This will be the holding account for all clients’ funds, company capital, investors’ capital and any other form of deposits. Naturally, all clients’ withdrawals and company expenses, such as directors’ and staff salary, marketing expenses and company driven investments are based on the same account.

Therefore, unless there are strict financial accounting controls and prudent exercise of financial responsibilities, it won’t be very long before expenses run out of control and clients’ funds are put at risk. Further, investments made off these funds can be under great peril when managed wrongly. Stories of MF Global and PFGBest come to mind under these very management travesties.

Segregation of Funds ensure that both the company’s assets and the clients’ assets are never maintained under the same account. In case the company becomes insolvent, the clients’ funds are untouched and can be repatriated by the administration.

Trust Facility

Though segregated accounts only mean that the accounts are separate, whether there is control as to whether the company can still access clients’ funds is a further question to ask. Many firms use the “safety” of segregated accounts to sell their laurels, but how the funds within the clients’ deposit account is used is still open to question.

FxEthos has addressed this concern by setting up a trust facility. This is independently administered by a certified law firm in New Zealand, who will inspect and authenticate every single transaction, in or out of the account.

Further, as the trustee is also a joint signatory on the bank account holding your funds, there is no permission to withdraw/invest these funds for company’s interests.

Trust facilities were only available for clients with high-net worth and many brokers offer this at an additional cost. With us, every single account and dollar within is facilitated under this trust entity.

At FxEthos, we bear the extra costs to give you extra comfort.