Will spread betters survive increasing regulation?

Will spread betters survive increasing regulation?

The UK's spread betters are in purgatory at the moment. The Financial Conduct Authority (FCA) has proposed a range of restrictions on companies selling contracts for difference (CFD) to retail clients. The most hard-hitting of the proposals is to limit the amount of leverage these customers can trade with to 50 times the value they have deposited in their account. As such, the investment case for the CFD sector has become a whole lot more uncertain and, unsurprisingly, the three main UK-listed providers - IG Group (IGG), CMC Markets (CMCX) and Plus500 (PLUS) - suffered heavy falls in the value of their shares following the announcement.

To continue reading, register today

to enjoy limited access to the following:

  • Daily trading news
  • Funds coverage
  • Features on big investment themes
  • Comprehensive companies coverage
  • Economic analysis
Subscribe to Investors Chronicle

Related topics

Subscribe today

Full access for just £3.37 a week:

• Tips and recommendations - to beat the market 
• Portfolio clinic & Mr Bearbull - build a well-planned portfolio 
• Expert tools - track and manage investments effortlessly
• Plus free delivery to your home or office

Subscribe Now