Client Money Protection
As a Finspreads client, you can be safe in the knowledge that your money is safe with us.
We operate in strict accordance with the Financial Service Authority's rules on Client Money, which help to ensure that your funds are protected when you trade with us.
Why Trade with Finspreads?
Finspreads is an established brand and has over 13 years’ experience in the UK.
We hold all Client Money in a segregated account. Finspreads is a trading name of City Index Ltd, which is authorised and regulated by the FSA.
We only use our own funds for hedging.
Finspreads – A Safe and Secure Option
At Finspreads, all client funds are kept in a segregated account unless requested otherwise. This means that as a retail client, any Client Money that you have transferred to us will be held by us on trust for you at all times and your money will be segregated from our own money. See our Terms and Policies for more information.
A Trusted Brand
Finspreads is part of the City Index Group of companies. Over the last 29 years City Index has grown to become one of the world’s leading providers of contracts for difference, forex, and, in the UK, spread betting.
As well as Britain, we have offices in the United States, Australia, China, Singapore, Poland, Germany and Israel. Today, the City Index Group consists of City Index, Finspreads, FX Solutions and the IFX Markets brands.
Centrally Cleared Trades
What are Centrally Cleared Trades?
In anticipation of planned changes by the European Union and the G20 to ensure all OTC (Over-The-Counter) derivatives are cleared through central counter parties and in the hope that this will offer you – our clients – better protection, we may designate some markets as being cleared through a clearing house.
For all Centrally Cleared Trades, we may transfer margin we hold as ‘Client Money’ to the clearing house to support your trades. Once transferred to the clearing house they will deal with it in accordance with their own clearing house rules.
However, your money will be held by the clearing house in a segregated client transaction account for our clients that may not be combined with any other account.
The clearing house will have no right to set‐off against the client transaction account any amounts owing to the clearing house on any other account.
Is my Money Protected Through Centrally Cleared Trades?
Your money has always been and will always remain protected with us in full compliance with FSA rules.
City Index will be using the leading global independent clearing house, LCH.Clearnet, which is overseen by the regulator in each jurisdiction in which it operates (including the Financial Services Authority in the UK). LCH.Clearnet provides services to major international exchanges and platforms, as well as a range of OTC markets. By assuming the counterparty risk, LCH.Clearnet underpins many important financial markets, facilitating trading and increasing confidence within the market.
Only your margin will be transferred to the clearing house and they will hold that money in a segregated client transaction account that may not be combined with any other account. The clearing house will have no right to set-off against the client transaction account any amounts owing to the clearing house on any other account.
Irrespective of protections that we put in place under the FSA Rules, contingent risks remain so that in the unlikely event that either the clearing house or we become insolvent you may not receive back all of the monies in which you have a proprietary claim. However, in the event of our insolvency you may be entitled to compensation under the Financial Services Compensation Scheme as explained in our General Terms.
For further information please see our Risk Warning Notice for more information.
