Core Spreads On Choosing a Spread Bet Provider
After the collapse of Alpari UK in recent weeks, independent spread bet provider Core Spreads is offering some top tips for those searching for a new place to trade. From FCA regulation to spread size, the spread betting company is helping all those looking for a new provider.
Alpari UK, the foreign exchange broker and spread betting site, was the victim of the Swiss National Bank’s decision to stop pegging its currency to 1.20 against the Euro in January. The Swiss franc surged in value, and anyone who was ‘short’ against the Swiss franc against almost any other currency will have lost money. Unfortunately, Alpari UK had to apply for insolvency, with administrators coming in to ensure clients can reclaim the money they’re owed.
In light of the unfortunate collapse of a market leader, Core Spreads is offering tips for those now without a spread betting provider, in the hope that they’ll be led to a new trading platform.
A spokesman for Core Spreads says, “We were sorry to hear of the unfortunate situation at Alpari UK, where a completely unseen decision by the SNB has resulted in clients being out of pocket and many losing their jobs. Many of those clients are now looking for another platform where they can conduct trades – and we’d like to offer some top tips on how to narrow down the contenders.”
The first, and the most important factor in choosing a spread betting firm, is to ensure that it’s regulated by the Financial Conduct Authority – better known as the FCA. Unregulated spread betting providers are incredibly dangerous, with no obligations towards their clients and no one to hold them accountable if things go awry. The FCA is an independent body which grants approval to firms which operate in compliance with all British laws – and holds them accountable if they do not comply with the strict guidelines.
This links to the next point: anyone searching for a new spread betting provider should always enquire about whether the firm in question segregates client funds from their own. This is covered by the FCA – but it’s always worth verifying it with the provider themselves. Choosing a spread betting provider which doesn’t segregate funds puts the client at risk of being unable to withdraw their money, because it’s being used to cover the company’s own expenses. It’s an unlikely scenario, but a viable one – and always worth confirming with a company before registering for an account.
Lastly, it’s important to consider the size of the spreads when trading the markets. When choosing a broker, the lowest spreads are generally the most attractive – and it’s even better if they’re fixed.
There are also other criteria which will be unique to each person – bet sizes, margin requirements, and limited risk accounts, for example. But taking all of these factors into account, it should be easy to choose a spread betting provider that will work for each individual.
To learn more, try a one click demo or start trading go to www.CoreSpreads.com.
Financial spread bets are leveraged products, which means you could lose more than you deposit. You should ensure spread betting meets your investment objectives. Full risk warning
Editor's Note: Issued by Dakota Digital. For more information please contact Lauren Carroll. Email: firstname.lastname@example.org or Tel: 01623 428996 ext 2.
Core Spreads Ltd is an appointed representative of Finsa Europe Ltd (a company registered in England and Wales under number 07073413) which is authorised and regulated by the Financial Conduct Authority (under firm reference number 525164). Core Spreads is a trading name of Finsa Europe Ltd.