Potential mass exodus from Spreadbetters.

Sonicscooter

Experienced member
1,811 350
spoze we will have to wait and see the outcome of the esma debate, Roll on Brexit...
Brexit won't make any difference, or that's what IG told me on friday.

EUR/USD..................£611.................£4073
Germany 30...............£660................£6600
Oil – Brent Crude........£1035................£6900
Apple......................£8950................£3 2,800

To be realistic, if one cant stump up the above kind of money to trade then one shouldn't be in the game and it seems obvious why some sort of change is deemed necessary, to point blame one could start with the foolishness of trading the Swissy last year etc.

To consider that to trade the Dax @£5 a point you would need a deposit of £3300 is not out of the question for anyone serious.
 

kalott

Established member
677 57
Not that i mean that trading and gambling is the same thing

But why not do something about gambling if they (EU,UK) are so concerned about people losing money?

"The report by the Gambling Commission estimated that the number of British over-16s deemed to be problem gamblers had grown by a third in three years, suggesting that about 430,000 people suffer from a serious habit.

It also found evidence of an increase in addiction among those playing controversial fixed-odds betting terminals (FOBTs), which have been criticised for allowing betting shop customers to spend up to £100 every 20 seconds."

https://www.theguardian.com/society/2017/aug/24/problem-gamblers-uk-gambling-commission-report
 

Sonicscooter

Experienced member
1,811 350
Simple answer and i'm not wanting to go off topic like most threads on here, so if someone loses £100 in a Bookies on a machine and that several hundred people a week do the same etc, that doesn't hit the news, what does hit the news is one Teacher losing £280,000 spread betting, nice big fat news headline.
 

kalott

Established member
677 57
I maybe should use a tin foil hat :cheesy:

But i think there is more to this than meet the eye?

Maybe it has something to do with next bear market that are close and they dont want traders shorting with high leverage?

I know most of the CFD,SB never hits the real market but if 99% shorting (hedging stocks) someone needs to hedge i think?

The next step would probably be a ban on short shelling (starting in USA)?
 

new_trader

Legendary member
6,207 1,263
ESMA Unfair

¹The FCA Handbook designates contracts for difference, spread bets and certain ‘rolling spot’ FX contracts as types of ‘CFD’, which in turn are a type of derivative.
I suppose that makes it clear. I sent my reply to ESMA saying that SB is an affordable way for people to learn how to trade as many can't afford DMA. I said the proposal is essentially unfair.
 
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Sonicscooter

Experienced member
1,811 350
I suppose that makes it clear. I sent my reply to ESMA saying that SB is an affordable way for people to learn how to trade as many can't afford DMA. I said the proposal is essentially unfair.
Well done Sir.
 

jm1054

Junior member
42 12
I suppose that makes it clear. I sent my reply to ESMA saying that SB is an affordable way for people to learn how to trade as many can't afford DMA. I said the proposal is essentially unfair.
I've just submitted my reply too, said pretty much the same thing.

Ironically, increased margins won't stop someone with a large account losing a fortune, if they're intent on doing so!

I hope this isn't a "and so it begins" moment. I've always felt spread-betting was too good to be true and guessed that it wouldn't always be around in its present form. Let's hope I'm wrong.

Alternatively, there's a pretty good chance that the big companies like IG will come up with an affordable solution, otherwise it'll hit their profits massively!
 

Dowser

Experienced member
1,253 283
Let's see how creative they get in the face of this onerous regulation. What's to stop brokers splitting their businesses up to accommodate retail and professional clients - opening offices up in locations outside the jurisdiction of ESMA and FCA to cater for us small fry.
 
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Kaeso

Established member
836 91
I've just submitted my reply too, said pretty much the same thing.

Ironically, increased margins won't stop someone with a large account losing a fortune, if they're intent on doing so!

I hope this isn't a "and so it begins" moment. I've always felt spread-betting was too good to be true and guessed that it wouldn't always be around in its present form. Let's hope I'm wrong.

Alternatively, there's a pretty good chance that the big companies like IG will come up with an affordable solution, otherwise it'll hit their profits massively!
Hi JM, its interesting that this subject prompted your second post in 8.5 years! :D