We all have our bank account and we do have funds and assets in it and hence the bank here is the one providing the safety of funds and assets which means the bank is crypto custody providers in Forex to us. Custodian is an actual body providing security and safety to our assets and funds. They hence oversee the transactions performed and safeguard the entire transactions and above all, they provide the other services too such as transaction settlements, tax support, the foreign exchange also the collection of dividends and interest payments.
The fees differ from client to client depending on the services provided by the custodian. The more the services offered more is the fees charged by the custodian.
Custodian Services in Foreign Exchange
We all know how the forex market works, the forex market is the largest market in the world and hence the only medium through which the customer reaches out to the market is the forex broker. Therefore, if the broker closes down once liquidated, the customer loses too and hence the custodian comes for the rescue of the customers. Though brokers are required to maintain and follow all the regulatory procedures in order to maintain the client’s loyalty. Custodian holds services in both physical as well as electronic form and hence safeguards the funds so as to protect the funds and assets of customers, crypto custody providers the services to their clients. If the brokers get bankrupt, custodians protect and secure clients from it so that even if brokers get insolvent, clients don’t end up losing their funds.
Customers have an escrow account where the power of attorney is given to the custodian to handle the account where the custodian can easily transact for profits and losses within 24 hours of the day of trading.
Benefits of having a custodian account
Custodian provides the security and safety of the funds of the customers in order to protect their funds and assets from any uncertainty.
They ensure that the assets are very well segregated from others so security is at its peak.
They comply very well with the regulatory requirements.