It is good to see the Financial Conduct Authority (FCA) taking decisive action to protect investors using financial spread betting.
Contract for difference (CFD) markets are difficult to understand and very high risk. In my opinion, they are no place for most retail investors.
As the name suggests, spread betting is gambling, not investing. It's no surprise to hear the FCA report that 82% of clients using these products have lost money.
Introducing better risk warnings for investors, details of the numbers of winners and losers, capping the amount of money that can be borrowed to gamble with, and banning account opening bonuses should all go some way towards warning consumers of the dangers of these schemes.
There is no such thing as a 'get rich quick' scheme. The only way to true wealth is to get there slowly.
"We have serious concerns that an increasing number of retail clients are trading in CFD products without an adequate understanding of the risks involved, and as a result can incur rapid, large and unexpected losses," said Christopher Woolard, the FCA's executive director of strategy and competition.