LONDON, April 10, 2012 /PRNewswire/ --
In light of recent events at WorldSpreads, it is important to know that your capital is safe when you are spread betting on financial markets. As a Capital Spreads client you can trade safely and securely in the knowledge that your money is always protected. Capital Spreads is a leader in the financial spread betting market, giving retail customers access to a range of financial products, with low margin requirements and tight spreads.
Client money protection
Capital Spreads (a trading name of London Capital Group) fully complies with the FSA's strict rules on client money so our retail clients can rest assured that their funds are fully segregated and ring fenced. This means that not only funds deposited with us but total net available funds (the net position on any open trades calculated on a mark to market basis plus account balance) are held completely separately from our own. Consequently, any money which we hold for our clients would not be used to satisfy the claims of any creditors should they arise. Even the bank which holds our client money cannot use those funds to offset against debt on any other LCG bank account.
The segregation of client money from the firm's money does not protect the client if the bank that holds the client money goes into administration. However, each individual client could make a claim of up to £85,000 under the Financial Services Compensation Scheme (FSCS).
In the very unlikely event that London Capital Group was to go into liquidation and there was a deficiency in the client money bank accounts, individual accounts are covered by the FSCS up to a £50,000 maximum per client.
London Capital Group conducts daily financial resource calculations to ensure that it has adequate regulatory capital at all times. At the end of each day our segregated funds accounts are rebalanced to ensure that all clients' available funds (balance on their account plus valuation of open positions), as at midnight that day, are fully segregated.
London Capital Group's auditors, Deloitte LLP, undertake thorough regular reviews of all aspects of client money segregation to provide further reassurance that our clients' funds are safe.
Financial stability
London Capital Group Ltd is wholly owned by London Capital Group Holdings plc, which is listed on the London Stock Exchange and an established member of the AIM market.
London Capital Group is a very well capitalised and completely debt free organisation with an exceptionally high tier one capital ratio of well in excess of 100%. This means that the ratio of our core equity capital to our total risk weighted assets is incredibly strong.
Online security
Our websites and platforms are secured by a Thawte verified certificate which is an industry recognised standard of security. All of our websites and trading applications are regularly audited and tested by external security advisers.
Learn more about why you should trade with Capital Spreads.
Spread betting and CFD trading carries a high level of risk to your capital and you can lose more than your initial deposit. These trading products may not be suitable for all investors so seek independent advice.
Capital Spreads is a trading name of London Capital Group, which is authorised and regulated by the Financial Services Authority and a member of the London Stock Exchange. Registered Address: 2nd floor, 6 Devonshire Square, London, EC2M 4AB. Registered Number: 3218125.
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