Opening UK broker account for spread betting - wealth requirements?

kevinsb

Newbie
7 2
Hello, firstly I hope this is the correct forum to post this question to.

I'm a total newbie to this but would like to try spread betting. I opened a demo account with IG and am happy with how that is going so would like to go live.


I had some some posts in various places about having to have a min salary and savings etc, even read about one broker asking for notarised documents. I understand this is a result of new FCA in the last year or so.

I emailed IG and asked them what the requirements were, they said they cannot say.

I'm not comfortable filling in a long application form, and providing lots of personal information about salary and savings etc, without knowing what they will do with it, who they will contact and will they reject my application, and will it hurt my credit rating, or will there be a permanent record somewhere that I wanted to join basically a gambling site.

I'm in the Republic of Ireland, want to do just spread betting, not CFD, and am inexperienced and just earning an average industrial wage. Want to open a retail account. Will they let me open an account? Will they be contacting my employer or bank?

Many thanks!
 

rossored

Senior member
2,085 48
They won't contact your bank or employer. The questions are to qualify you so they can make a decision that complies with FCA regs to make sure they're not going to put you on the street. Given your experience level, they will no doubt give you an account even it's a small low leveraged one (which it will be).

You will inevitably lose some money, make some money, and learn a bit along the way. Trading with real money is not like trading demo accounts, as you will come to see. Answer their questions, deposit your money, and be prepared to kiss it all goodbye.
 
  • Like
Reactions: kevinsb

tomorton

Legendary member
7,306 975
The firm also has to comply with anti-money laundering legislation, which is stringent. Be aware that if you can't satisfy one of these firms at the application stage that the deposited funds are legitimately yours, then you should expect a really tough time when you want to draw the money out again plus profits.

Unfortunately, there are occasional stories about some firms being lax about accepting funds but then getting really sticky about handing them back. Do go for a large and well known firm in a tough regulatory area.
 
  • Like
Reactions: kevinsb

kevinsb

Newbie
7 2
Thanks for the warning.

I went with IG I just had to send a scan of my driving license and utility bill, and select from 2 x drop-downs of my salary range and savings. They rang me and I was approved about 2 hours later. I just have to pass a test now on CFD before I can trade.

I assume with IG I should be safe to get my money back? I'll start with the smallest amount I can trade wwith considering my leverage.
 
  • Like
Reactions: tomorton

Forex-Jedi

Junior member
13 2
I assume with IG I should be safe to get my money back?
IG are a solid, reputable broker. So if you mean “will I be able to make withdrawals without issues” then the answer is yes. I’ve been trading with IG for years and never had any problems.

However, if you mean “if I lose my money spread betting will they refund it if I complain?” Then the answer is no.

You may think that’s hilarious, but you’d be amazed how many clueless newbies do this after losing their money and are shocked to be told “er, no. This is how trading works, you confirmed you understood that.”
 

hatemypips

Well-known member
469 33
Hello, firstly I hope this is the correct forum to post this question to.

I'm a total newbie to this but would like to try spread betting. I opened a demo account with IG and am happy with how that is going so would like to go live.


I had some some posts in various places about having to have a min salary and savings etc, even read about one broker asking for notarised documents. I understand this is a result of new FCA in the last year or so.

I emailed IG and asked them what the requirements were, they said they cannot say.

I'm not comfortable filling in a long application form, and providing lots of personal information about salary and savings etc, without knowing what they will do with it, who they will contact and will they reject my application, and will it hurt my credit rating, or will there be a permanent record somewhere that I wanted to join basically a gambling site.

I'm in the Republic of Ireland, want to do just spread betting, not CFD, and am inexperienced and just earning an average industrial wage. Want to open a retail account. Will they let me open an account? Will they be contacting my employer or bank?

Many thanks!

Nope, it's just for records to protect broker @ss if after account blow-up you will complain to FCA about scam experience. I would recommend you to indicate that you have some previous experience with trading, know which trading instruments exist, what is stop loss, take profit, fundamental and technical analysis. It's not so easy for broker to verify do you really have that qualification so basically its' assumed that you are honest when supplying that information.
 

kevinsb

Newbie
7 2
IG are a solid, reputable broker. So if you mean “will I be able to make withdrawals without issues” then the answer is yes. I’ve been trading with IG for years and never had any problems.
Yes that's what I mean. My winnings, or what's left once I call quits to my losses.
 

kevinsb

Newbie
7 2
Nope, it's just for records to protect broker @ss if after account blow-up you will complain to FCA about scam experience. I would recommend you to indicate that you have some previous experience with trading, know which trading instruments exist, what is stop loss, take profit, fundamental and technical analysis. It's not so easy for broker to verify do you really have that qualification so basically its' assumed that you are honest when supplying that information.
Well I've already opened the account and I answered "no experience" to the experience question.
 
  • Like
Reactions: rossored

hatemypips

Well-known member
469 33
Red tape is so red tape :) but lets hope your performance won't correspond your answers in the questionnaire
 

gand356

Newbie
3 0
Hi - similar to the op - does anyone know what the wealth requirements are for IG or CityIndex in the UK - is it a salary of £ 15,000 ? - savings of £ 5000 ? - do they ask for bank statements to show current savings etc? - anyone applied in the last 2 years or so - thanks
 

Similar threads


AdBlock Detected

We get it, advertisements are annoying!

But it's thanks to our sponsors that access to Trade2Win remains free for all. By viewing our ads you help us pay our bills, so please support the site and disable your AdBlocker.

I've Disabled AdBlock