idealing margin account

[cassiopeia]

I am in the process of applying for this account. The terms and conditions state the account will not be segregated and the client would be treated as a creditor in case of insolvency, in other words if idealing went bankrupt you may lose all your deposits.

This is standard for CFD accounts, but I have never encountered this for spread betting before, one of the advantages of the latter is they are usually segregated and you get protection under the FSA. (As far as I know the idealing margin account encompasseses spread betting and CFDs). Does anyone else use idealing for this account or have similar concerns about taking the extra risk with other companies?

idealing are being very evasive with the interest terms as well, anyone know what they currently offer for long and short positions?

 

[Oldun]

cassiopeia,

If you find them evasive and they seek to deny you ordinary protections then why on earth continue to open an account with them?

There are plenty of others in the market place.

 

[bharat]

oldun-

are all spreader's a/c's covered under FSA?

i deal with deal4free and thinking of moving half of my capital somewhere else. any ideas as i do about 200 plus contracts per weeks. any comments/suggestions welcome.

thanks in adv.

 

[Oldun]

bharat,

Sorry, I can't be sure. I think, although I may be wrong, the D4Ffee SB account is segregated but their CFD account isn't.

You need carefully to research the contract and regulatory terms with whichever firm you are considering.

Seems to me that if one's money is not to be separated from the SB/CFD firm's assets/liabilities then one is asking for trouble. Further, as appears the case with cassiopeia, if the firm is evasive about its terms then that seems to me another reason to give it a wide berth.

Only my opinion of course.

 

[oatman]

Agree, be careful about segregation. There was a case a couple of years ago where all "segregated" accounts were held together. That is they were segregated from the company but not from one another. I can't be specific, but I believe one of the segregated accounts went down taking others with it. If you want true segregation you must read the small print, to be sure your account is isolated.
Don't leave too much money up.

 

[ColinRiche]

Idealing - who are they ?

i've never heard of them.

 

[cassiopeia]

Oldun

I am looking for a broker who offers spreadbet FTSE250 companies at market prices, unfortunately idealing are the only ones I know who do this at present.

I am still in the process of application so that is why I asked if anyone had any other experiences of them for spreadbet accounts before I take the plunge. They are probably the best broker around for ISAs and PEPs in my experience so their terms on margin accounts are a bit dissapointing.