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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.

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