Warning Against Non-FSA Spread Betting Brokers

Online, March 20, 2012 (Newswire.com) - Online trading resource site IndependentInvestor.co.uk has warned traders to take care when choosing a broker, and to do business only with spread betting platforms that are FSA regulated and authorised.

The leading financial investment site, which specialises in equipping traders with independent reviews of different spread betting brokers, has warned that dealing with non-FSA registered brokers is riskier, particularly online, and can end up costing traders significant amounts of time, money and hassle to put right.

The FSA regulates financial activities in the UK, establishing a framework for oversight and compliance that brokers must adhere to. This regulation is designed to protect consumers, including traders, from unscrupulous practices, helping ensure traders are treated fairly by their spread betting brokers.

A spokesperson for IndependentInvestor.co.uk suggested that as a financial activity, it was important to ensure that spread betting brokers are regulated by the FSA to give traders peace of mind in the knowledge that their money and personal details are safe.

"Choosing a spread betting broker that is FSA regulated is an essential part of making the right choice, and the pitfalls for traders that stray off this path can be significant. An FSA regulated broker is by definition subject to the regulation and oversight of the FSA, the body responsible for regulating financial activity in the UK. Trading through an FSA-registered broker means you can take confidence that you're trading on real markets with a fair chance, and that your capital deposits are in good hands - none of which can be guaranteed with non-FSA registered financial spread betting brokers."

"As a fundamentally financial activity, spread betting really needs the oversight of an independent regulator like the FSA to ensure everything is being handled above board. At IndependentInvestor.co.uk, we speak to a large number of traders looking to find a suitable broker, and our advice across the board remains the same - an FSA regulated spread betting broker is the safest, most secure route for traders to take."

FSA regulated spread betting brokers are required to comply with strict guidelines and regulations, and as a consequence FSA regulated brokers are considered a safer option for traders concerned about getting a fair deal.

IndependentInvestor.co.uk specialises in providing traders with the tools and resources necessary for successful spread trading, including broker reviews aimed at helping traders choose their preferred trading platform.

About:
IndependentInvestor.co.uk is an online broker comparison site, allowing traders of all levels of experience to compare different brokers and service levels to find the best deal. With coverage of spread betting, futures trading, forex and CFDs amongst others, IndependentInvestor.co.uk is the web's foremost financial broker comparison site, helping thousands of new traders find a permanent home.

In addition to comprehensive broker reviews, IndependentInvestor.co.uk also maintains a training academy, free to use and packed with the latest in financial spread betting know-how and resources.