Does FSCS protect UK forex and CFD trading accounts?

FSCS vs ICF — what compensation do EU and UK forex traders get?

UK clients of FCA-regulated brokers are covered by FSCS up to £85,000 per person, per institution. EU clients of CySEC-regulated brokers are covered by ICF (Investor Compensation Fund) up to EUR 20,000. Both schemes pay out only if the broker becomes insolvent — not on trading losses.

Is spread betting tax-free in the UK?

For most UK retail traders, spread betting profits are free of Capital Gains Tax, Income Tax and Stamp Duty. HMRC manual BIM22015 confirms betting wins are not taxable as trading income, and CG56105 confirms no chargeable gains arise from spread bets. The trade-off is that losses are not tax-deductible, and HMRC can treat systematic spread betting that forms your main income as a taxable trade (BIM22020). This is general information, not tax advice.

What are the FCA leverage limits for UK retail traders?

The FCA caps leverage for UK retail CFD and spread-betting accounts between 30:1 and 2:1 by asset volatility: 30:1 on major currency pairs, 20:1 on minor pairs and gold, 5:1 on individual shares and 2:1 on cryptocurrencies. In force since August 2019, the rules also require a 50% margin close-out and negative balance protection for retail clients.

Article: ICF, FSCS, SIPC — What Investor Compensation Schemes Cover, and What They Don\u2019t

The €20,000 ICF, the £85,000 FSCS and the $500,000 SIPC headlines hide more than they reveal. The schemes cover broker insolvency, not broker fraud, market loss, or trading-decision regret. Three named historical claims show what each scheme actually pays out — and where the gaps are.