Source of Funds

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verance
Posts: 83
Joined: Wed Nov 11, 2020 10:59 am

Is this a concern in investing? I'm starting to invest in stocks, long-term buy and hold.

Do brokers ask for source of funds? And if so, do they accept gambling winnings?
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MobiusGrey
Posts: 289
Joined: Fri Nov 23, 2018 8:10 pm

I can only answer from my personal experience. I'm with IG Index and have 3 accounts, a share dealing account, a spreadbet account and a CFD account. These all come under the same umbrella and when I opened my account all they asked were a few questions such as source of income, any savings and any relevant trading experience. That was it, they didn't run a credit check or ask for any intrusive details. Despite spreadbetting being seen as gambling it's not governed by the gambling commisson and instead comes under the FCA. A couple of years ago they did a major crackdown on the insanely high leverage some brokers were offering but any changes in the upcoming gambling law reform won't affect trading/investing/spreadbetting.
verance
Posts: 83
Joined: Wed Nov 11, 2020 10:59 am

Thanks MobiusGrey. From reading around elsewhere it doesn't seem to be a major issue (with 0 leverage anyway), might start off small and scale up to see how things go
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MobiusGrey
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Joined: Fri Nov 23, 2018 8:10 pm

verance wrote:
Wed Jan 26, 2022 2:37 pm
Thanks MobiusGrey. From reading around elsewhere it doesn't seem to be a major issue (with 0 leverage anyway), might start off small and scale up to see how things go
Post the sign up process I've never been questioned about any deposits/withdrawals. It's a bit stupid that you can't place a £100 bet on Betfair without having to send payslips, mortgage statements yet I could deposit £10k into a spreadbet account and blow the lot in one day and no one would give a shit.
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ANGELS15
Posts: 844
Joined: Wed Mar 22, 2017 9:57 am

MobiusGrey wrote:
Wed Jan 26, 2022 3:04 pm
verance wrote:
Wed Jan 26, 2022 2:37 pm
Thanks MobiusGrey. From reading around elsewhere it doesn't seem to be a major issue (with 0 leverage anyway), might start off small and scale up to see how things go
Post the sign up process I've never been questioned about any deposits/withdrawals. It's a bit stupid that you can't place a £100 bet on Betfair without having to send payslips, mortgage statements yet I could deposit £10k into a spreadbet account and blow the lot in one day and no one would give a shit.
Do see my recent post below. This process is now reaching the high street.

viewtopic.php?f=15&t=22527
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