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Finspreads Review - Is it scam or safe?

Finspreads Review - Is finspreads.com scam or good forex broker?

RATING: 3 / 1 REVIEWS Finspreads
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Trading Accounts

 

Account type   Minimum deposit  Minimum Stake Size Maximum leverage Average Spreads   
Beginners £50 10p 1:100 0.8 pips on EUR/USD
Standard £100  50p 1:100 0.8 pips on EUR/USD

 

Finspreads is a UK spread betting brand of major global brokerage Gain Capital. It offers two account types with tight variable spreads and leverage up to 1:100 on its in-house platforms.

 

As spread betting is a form of leveraged trading, there is the risk that you could lose more than the funds you have in your account (if prices move against you). That is why Finspreads offers a special Limited Risk option for standard accounts. All trades made through this account have a Guaranteed Stop Loss Order* (GSLO) attached, so you cannot lose more than you have invested.

 

The Company. Security of Funds

 

Finspreads was established in 1999. In 2002 it was purchased by IFX group PLC and in 2006 CityIndex acquired IFX, after which it was acquired by GAIN Capital UK Ltd.

 

Gain Capital is a global brokerage and the largest in the US (after FXCM exited the US Market). It offers trading in currency pairs, index & commodities CFDs, precious metals, exchange-traded futures and options (US clients), as well as spread-betting services (in the UK).

 

Company

Country

Regulation

GAIN Capital UK Ltd. 

UK

 FCA

 

For a number of reasons, such as being categorized as online gambling and the absence of tax rules on the proceeds from this sort of financial trade, spread betting is declared illegal in several countries including the US, Japan, and Australia. Fortunately, it is not outlawed in the United Kingdom and a few other European countries and that is why the spread betting market remains concentrated there. A key advantage of spread betting is that due to the fact that it is categorized as a bet, no capital gain tax and stamp duty are charged on this trade.

 

Spread betting is covered by the Financial Services Act and spread betting providers are regulated by the Financial Conduct Authority (FCA). FCA regulation means that companies have to comply with strict rules and must meet a set of requirements. For instance, all FCA-licensed brokerages are required to hold net tangible assets amounting to at least 730 000 EUR and are obliged to adhere to a number of standards and procedures, such as, to hold clients` money in segregated accounts, to send regular reports on trades to the commission, etc.

 

Besides, FCA-regulated companies fall under Financial Services Compensation Scheme (FSCS), which protects consumers up to £50,000 per person.

 

Trading Conditions

 

Minimum Initial Deposit

The minimum initial deposit with Finspreads is £50 and the minimum stake is 10p, which is pretty low and attractive, especially for beginners.

 

Average spreads & Commissions

Finspreads offer commission-free trading and tight spreads, averaged 0.8 pips on EUR/USD. This cost of trading is really low. By comparison, leading CFD and spread-betting provider IG offers average spread amounting to 0.7 pips for this pair.

 

Maximum Leverage

This broker offers a maximum leverage ratio of 1:100, which is considered average or even mediocre. In comparison, IG provides leverage levels of up to 1:200. If you need higher leverage levels, here is a list of brokers offering leverage levels equal to or exceeding 1:500.

 

Keep in mind that higher leverage involves greater risks of losses, which may even exceed your initial deposits.

 

Trading Platform

 

Finspreads offers its in-house platform, available for web browser and also for iOS and Android mobile and tablet apps.

 

The platform is offers most basic functionalities all trading platforms provide, such as customisable charting package, dealing through charts, one-click trading, Margin Calculator, technical analysis indicators, etc. Platform users can monitor historical and current market price actions, draw trend lines, highlight future entry and exit points and, of course place their bets.

 

Finspreads platform, however, doesn’t offer any autotrading options.

 

Methods of Payment

 

The payment methods available to Finspreads` clients are credit/debit card or bank transfer e-wallets Skrill and bacs.

 

Conclusion

 

Finspreads is a UK spread betting brand, owned by major global brokerage Gain Capital, offering attractive trading conditions. However, its platform lacks some advanced features offered by MT4. In a nutshell, here are the advantages and disadvantages with regard to Finspreads:

 

Pros Cons
FCA regulation No choice of trading platforms
Tight spreads No autotrading options
Small bet size  
Part of international Gain Capital group  

 

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Traders` reviews for Finspreads

Spread

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Slippage

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Requotes

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Price feed

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Platform

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Deposit/Withdraw

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Customer service

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Summary

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Stay away

I used this company years ago, they were rubbish, so l decided to give them another chance about 4 years ago, but nothing had changed. Servers down on important and volatile days, can't get tickets open, can't close a trade before it turns into a loser, and on and on the problems are endless.

Ang 02/05/2019
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