Spread betting ‘carries financial risks’

There are risks associated with spread betting as with any other form of trading, according to the chairman of a bet broker and clearing house.

Wayne Lochner, chairman of Betbrokers, said that there will always be people that struggle as a result of spread betting, suggesting debt management problems could arise, but he added that such people are in the minority.

“With any financial industry, with any trading, there are always going to be people that get into difficulty,” Mr Lochner said.

“But by and large, the vast majority of people who get involved with spread betting know exactly what they’re getting into and understand the implications.”

He added that it is in the interests of spread betting companies to check that potential clients are credit worthy and that they have the ability to clear debt before taking them on, as they “don’t want to leave themselves open to bad debts”.

Finally, the chairman referred to spread betting as a “professional’s game” and not for the “man in the street”.

Betbrokers was launched in October 2003 and boasts an ambassador circle that includes Barry McGuigan, John Virgo and Lester Piggott, among others.