GO Markets' Mauritius terms let it take client money to hedge its own risk and to pay obligations incurred "other than on your behalf". Once it moves your money to a liquidity provider, a firm it hedges with, that money is no longer held in trust for you.
On a principal basis, as your counterparty, means the broker takes the other side of your trade itself. Your loss is then the firm’s gain, so it has an interest in how your trade ends.
Liquidity providers are outside banks and brokers.
Why this matters
If GO Markets or its liquidity provider fails, money moved out of the client account is no longer protected as yours. GO Markets' own Disclosure Statement promises it does not use retail client funds for hedging, and also says you agree it may.
Exhibit 1Every flagged clause gets its own number so you can point at this one. The number does not change, so a link to it keeps working.CriticalHow much this clause can cost you, in our reading. Critical can take your money or your profit. Warning can delay or limit it. Notice is simply worth knowing before you sign.Rarely seenHow ordinary this wording looks next to the contracts we read. This is our reading of the clause, not a count of other brokers.
Hedge, counteract or offset the risk GO Markets incur associated with transactions it enters with you.
Firms licensed by ASIC or the FCA may not use a retail client's money for their own hedging or to meet their own obligations. GO Markets' Australian disclosure lists both as uses it rules out. The Mauritius terms list both as permitted withdrawals.
GO Markets is not licensed by these regulators, so this is a comparison of practice, not a finding of any breach.
Our readingOur own comment on the clause, not the broker's words. Anything we quote is marked as a quotation.Client money rules exist to stop a firm paying its own hedges and bills from client accounts. A contract that lists those payments as permitted withdrawals turns the segregated account into a source of the firm's own funding.
- Worse together with Exhibit 3Read these two clauses together. Each one costs more because the other exists.The page that calls GO Markets ASIC regulated points to the rule set that would forbid this use of your money.
- Worse together with Exhibit 12Read these two clauses together. Each one costs more because the other exists.GO Markets is also the counterparty to your trades, so the hedge it funds with your money protects its own book.

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