fsa protection

[SanMiguel]

If you trade based on compound interest, it is very possible to build your account to a large state.
ie increasing lot / trade sizes as your account grows based on the same percentage risk.
In the UK, the FSA covers you for up to 40k for money held with companies that go bust, banks, etc.
So, if you ever got to the state where you were trading an account larger than 40k, how do you protect your money that sits with the broker?
Presumably, you would have to open multiple accounts with them and/or store your massive finances with many different bank accounts?

 

[top trader]

The UK's level of savings compensation was raised by £15,000 to £50,000 last year by the Financial Services Compensation Scheme (FSCS).
The limit is doubled for joint accounts to £100,000.

Open accounts with different banks IF you have more than 50k/100k to invest.

 

[SanMiguel]

The UK's level of savings compensation was raised by £15,000 to £50,000 last year by the Financial Services Compensation Scheme (FSCS).
The limit is doubled for joint accounts to £100,000.

Open accounts with different banks IF you have more than 50k/100k to invest.

Ok, but principle remains the same.
If you're planning to trade on compound interest then by the time your account reaches that level, you are restricted to a certain lot size in accordance with your risk and margin.
I assume 2 separate accounts at the same broker would not be covered separately?

 

[SanMiguel]

Actually...government backed banks provide 100% protection don't they?