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Is my money safe with a Spread Betting firm
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Last update : March 2010
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| Yes, all spread betting firms operating from within the UK are fully regulated by the Financial Services Authority (FSA).
The FSA's main responsibility is to maintain confidence in the financial system and to secure an appropriate degree of protection for consumers.
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| No advice offered |
| The FSA's regulation of spread bet firms prohibits them from offering or pushing financial advice. So the brokers are not allowed to recommend a trade, or advise a client to take profits at a certain level etc.
However, if a client wants or needs advice on the most suitable style of spread bet for their trading view, this is allowed. For example -
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| Is my money safe when deposited with a spread bet broker |
| The FSA requires all spread betting firms to hold their client funds in a bank account which is segregated from the spread betting firm's main business account.
Also the FSA's compensation scheme means that any cash up to £48,000 held with a broker is insured should the firm fail or have serious financial problems.
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