Spread Betting Review

Spread BettingTrading Regulations – 2018

Spread Betting & UK Trading Regulations 2018

The FCA’s Role in the Spread Betting World

The Financial Conduct Authority (FCA) is tasked with regulating financial markets in the United Kingdom. It is currently responsible for some 56,000 financial services companies, and the FCA also serves as the prudential regulatory authority for 18,000 of these companies. The financial markets need to operate in a transparent fashion. They must espouse principles of integrity, transparency, and credibility.

The modern economy requires oversight. The FCA provides that oversight by mandating that spread betting companies and other financial services enterprises abide by rules and regulations. Customers are a key component of the UK financial services sector, which currently employs 2.2 million people. The UK government collects over £65.6 billion in tax revenues from financial services companies including spread betting firms.

The FCA protects customers in several ways, including:

  • Ensuring appropriate standards of protection for customers
  • Ensuring the integrity and security of the UK financial markets
  • Ensuring healthy competition to better serve the interests of customers


How to find a regulated spread betting broker?

All UK regulated spread betting brokers are listed as such with the Financial Conduct Authority (FCA).  Fully licensed and regulated spread betting companies proudly display that seal of approval on their trading platform. When you are ready to start spread betting at a regulated broker, it’s important to cross-check that the broker is fully licensed and regulated by the FCA. When searching for a regulated spread betting broker, you have several options available. These include


Your other option is to use SpreadBettingReview.co.uk which is a fully trusted resource for UK spread betting traders. We feature the top spread betting brokers in the United Kingdom, and all of them are fully licensed and regulated to offer real money trading to clients. The leading brokerages include: InterTrader, AvaTrade, CoreSpreads, Markets.com, and CityIndex.


How Does the FCA Help in Reducing the Risk of Spread Betting?

The FCA serves as the watchdog authority for financial services companies, notably spread betting entities in the United Kingdom. It requires all regulated entities to comply with a financial services operations framework. In terms of protections offered to customers, a clampdown in CFD trading activity has taken place in recent times. There are now restrictions on how much retail investors can risk by way of margin, leverage based upon their level of experience.

Today, all spread betting platforms and trading brokerages are required to post details of the risks inherent in this type of trading activity. Further, there are lower leverage limits imposed upon spread betting companies and their clients. This is especially true of novice traders who don’t understand the financial markets and the risks that they run. Companies must comply with these spread betting rules and regulations to ensure their good standing with the premier UK regulatory agency.


The Benefits of Spread Betting with Regulated Companies

It is extremely important to work with fully regulated UK spread betting companies at all times. FCA regulation ensures that the spread betting company is fully licensed and authorised to offer spread betting services to UK clients. All activities conducted by the trading broker are overseen by UK government authorities. This ensures fairness in all trades, transparency of operations, and full recourse in the event of a dispute.

The FCA is a governing authority that can sanction bad actors and blacklist them if need be. The FCA clearly delineates fair play rules for all financial services companies in the United Kingdom. There are many reasons why FCA regulation is important and the benefits include the following:

  • Cross-checking of a broker’s claims of licensing and regulation ensures that they are acting with integrity, fairness and credibility.
  • Regulated spread betting brokers operate within the ambit of the law – they are not fly-by-night operations looking to scam you.
  • FCA regulation ensures that customer protections are in place to guard against the nefarious practices of dishonest brokerages.
  • FCA regulation ensures that you do not get in over your head as a novice investor with spread betting companies. The FCA limits leverage for newbie traders so that you are not overcommitted.


Regulations for Spread Betting on Cryptocurrencies

The recent explosion of spread betting activity on cryptocurrency like Bitcoin, Ethereum, Ripple, Litecoin and any of the other 1,500+ altcoin is a relatively new phenomenon. CFD trading (contracts for difference) on Bitcoin is a risky activity, and traders are encouraged to take special precautions with this volatile market. Given that CFD trading is risky by its nature, and cryptocurrency is perhaps the most volatile of all financial assets, the combination is daunting for new traders.

As such, it is incumbent upon responsible actors in the spread betting industry to post the risks of trading cryptocurrency on their platforms. Nonetheless, there are profits to be made by those who act in a responsible fashion to reap the rewards of crypto market activity. The FCA has not as yet ruled on cryptocurrency trading, as regulations are playing catch-up with investment trends. However, it is up to the UK Parliament to regulate cryptocurrency trading, and not the FCA.


2018 Updates and News

All news updates currently taking place in the spread betting industry can be found right here at SpreadBettingReview.co.uk. We cover the financial markets from top to bottom in the UK, including all new regulations, market activity, and spread betting news and updates. As soon as it breaks, we will bring it to you in real time. Our market insights and commentary are provided by spread betting experts throughout Britain.


The policy regarding getting your money back from a regulated broker

Regulated UK brokers are subject to the frameworks imposed upon them by the FCA. If you have decided to close your spread betting account with a UK broker, you can safely and securely get your money back. The following procedure is recommended:

  • Login to your account using your username/password combination.
  • Contact customer support, or your personal account manager at the broker and inform them that you wish to close your account. They will make all necessary preparations to ensure that your account is closed, your information is deleted from their records, and that your remaining balance is returned to you.
  • The FCA has a commitment to the protection of client funds. All brokers must have at least £1 million in operating capital, and there are always segregated accounts with regulated brokers.
  • All regulated brokers are subject to the Financial Services Compensation Scheme (FSCS) with a limit of £50,000 per person for claims against the company.
  • If the company does not play ball, simply contact the FCA via the above methods and they will ensure you are able to successfully close out your account and withdraw your capital.


Compare Top UK Spread Betting Brokers and Read Their Reviews:

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Intertrader ETX Capital markets.com
City Index easyMarkets CMC Markets Core Spreads


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