Does FSCS protect UK forex and CFD trading accounts?
How this answer was verified
- Cross-checked against broker-published fact sheets, regulator licensing databases, and ESMA product intervention notices.
- Reviewed by the FX-Brokers Asia editorial desk (Markets, Platforms, Regulation). Desk structure disclosed at /about/editorial-desks.
- Refreshed quarterly. The most recent verification date is shown above. Read our methodology.
Related
FSCS vs ICF — what compensation do EU and UK forex traders get?
UK clients of FCA-regulated brokers are covered by FSCS up to £85,000 per person, per institution. EU clients of CySEC-regulated brokers are covered by ICF (Investor Compensation Fund) up to EUR 20,000. Both schemes pay out only if the broker becomes insolvent — not on trading losses.
Is spread betting tax-free in the UK?
For most UK retail traders, spread betting profits are free of Capital Gains Tax, Income Tax and Stamp Duty, because HMRC classifies spread bets as gambling wagers rather than investments (manual CG56105). The trade-off is that losses are not tax-deductible. Spread betting is a UK and Ireland product, offered only by FCA-regulated firms. This is general information, not tax advice.
What are the FCA leverage limits for UK retail traders?
The FCA caps leverage for UK retail CFD and spread-betting accounts between 30:1 and 2:1 by asset volatility: 30:1 on major currency pairs, 20:1 on minor pairs and gold, 5:1 on individual shares and 2:1 on cryptocurrencies. In force since August 2019, the rules also require a 50% margin close-out and negative balance protection for retail clients.