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WorldSpreads Aftermath - Where is my money safe?

Whether you are a small-time punter, or a professional Spread bettor, even if you didn't have a WorldSpreads account, their administration has sent shockwaves across the industry. For those still with the stomach to continue spread betting, the incident highlights the importance of the following: 1) do your due diligence, 2) diversify your exposure, 3) don't keep unnecessary amounts in your accounts. Keep checking our Spread betting company comparison to see who are the best for you as consumers, this gets updated regularly so you don't have to keep trawling through all of the sites, and keep an eye out for additional section on Spread betting company - Financials summary, coming soon. If a company you're interested in isn't on there, just email This email address is being protected from spambots. You need JavaScript enabled to view it. . It may be that we don't think it's very good, or it may just be that we haven't got around to completing our analysis.

As already mentioned, the recent WorldSpreads incident, and the performance of the financial services sector in general in recent years has given investors such a torrid time in the last few years, that doing some due diligence when it comes to depositing your money anywhere other than under your bed is now essential.

Two companies quick to attempt to restore investors confidence were LSE listed London Capital Group (parent company of Capital Spreads) and IG group. Both companies stated that neither had any financial exposure to WorldSpreads and that retail client monies are segregated at all times by the companies. The rumours regarding the WorldSpreads client money issue had been circulating all weekend, and the incident is likely to have a big impact on the Spread betting industry with tighter compliance and regulatory regimes that could have a knock on impact onto prices for Spread bettors which is a bit like kicking a man when he is down.

Whilst we cannot advise on the financial stability of Spread Betting companies, Capital Spreads is currently our preferred Spread Betting provider for the mass user, because of its competitive prices, leverage and markets available, and general professionalism of service.

Read more about Capital Spreads

 

For info:

London Capital Group official response to WorldSpreads:

"London Capital Group Holdings plc notes that Worldspreads Limited ("Worldspreads") has appointed Joint Special Administrators following the identification of a material shortfall in client money.

The Company has no financial exposure to Worldspreads and no commercial contracts of any nature with  Worldspreads

LCG does not utilise retail client funds for its own or any other purpose. Retail client funds are fully segregated at all times whether required by regulation or not"


IG Group official response to WorldSpreads:

"IG Group Holdings plc ("IG" or the "Group") notes that Worldspreads Limited ("Worldspreads") has appointed Joint Special Administrators following the identification of a material shortfall in client money.

The Group has no direct financial exposure to Worldspreads.  Worldspreads had a UK market share of approximately 3%, compared to the Group's share of 41%, according to the most recently available market research.  

IG Group fully segregates all individual client funds, even where regulation permits otherwise and does not utilise client money for its own purposes."

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