Information Letter to the clients of LCG Capital Markets Limited (a.k.a. “FlowBroker”)

LCG Capital Markets Limited (additional trade name “FlowBroker”) is wholly owned by FlowBank SA, a Swiss Regulated entity until June 13, 2024. On that date, the Swiss Financial Market Supervisory Authority (FINMA) opened bankruptcy proceedings against FlowBank SA. FINMA appointed Walder Wyss SA, succursale de Genève, 14 rue du Rhône, P.O Box, 1211 Geneva 3 as bankruptcy liquidators (the Liquidators). The place of jurisdiction for the bankruptcy is FlowBank SA head office in Geneva. This has effectively stopped FlowBank SA operations.

LCG Capital Markets Limited maintains funds with accounts at FlowBank SA. Due to significant agreements between LCG Capital Markets Limited and FlowBank SA, the appointment of the Liquidators has currently made it impossible for LCG Capital Markets Limited to carry out its operations.

We draw reference to section 25 of our Terms and Conditions, which provides as follows:

FORCE MAJEURE EVENTS We may, in our reasonable opinion, determine that an emergency or an exceptional market condition exists which may prevent us from performing any or all of our obligations (a Force Majeure Event). Following the occurrence of a Force Majeure Event, we will inform BHS (ourselves) and take reasonable steps to inform you.

Force Majeure Events includes the following events: (i) any act, event or occurrence (including any strike, riot or civil commotion, industrial action, acts and regulations of any governmental or supra national bodies or authorities) that, in our reasonable opinion, prevents us from maintaining an orderly market in one or more of the indices/markets in respect of which we ordinarily accept transactions;

At the time of this writing, LCG Capital Markets Limited has engaged the Liquidators. We will update you as more information becomes available to us. For any additional inquiries, clients can continue to contact Customer Support at Email:

We sincerely apologize for the inconvenience this has caused.

CFDs and spread bets are complex instruments and come with a high risk of losing money rapidly due to leverage. 71% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

What is Financial Spread Betting?

Financial spread betting is a flexible form of derivatives trading which allows investors to speculate on whether the value of an instrument will rise or fall, without taking ownership of the underlying asset. Profits made from financial spread betting are tax-free* and exempt from stamp duty.

How Spread Betting Works

Financial spread betting works slightly differently to other forms of online trading. Instead of buying or selling lots of currency or a number of shares, traders invest in a specific amount of the instrument they are trading. This is known as a ‘stake’. To calculate profit and loss, investors must multiply their stake by how much the market moved in any given direction.

When financial spread betting, an investor will first select the instrument they wish to trade and decide whether they think its value will rise or fall. Then, they will choose the size of their stake, in other words, how much capital they are willing to invest per point of movement in the market. After employing sound risk management, an investor will then place their trade.

Spread Betting Example #1 – Going Long (Buy)

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An investor decides to spread bet on the GBP/USD currency pair, which is trading at a buy price of 1.32900 and a sell price of 1.32880. Setting a stake of £10 per point of movement, the investor opens a long position on the pair.

GBP/USD then rises to a sell price of 1.32950 and the trader closes the position to lock in the profit earned. As this is financial spread betting, the profit from this trade would then be calculated by multiplying the difference between the opening buy price and the closing sell price (1.32950 – 1.32900 = 0.0005) by the stake (£10). So, the total profit earned from this trade would be £50.

Spread Betting Example #2 – Going Short (Sell)

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In this spread betting example, an investor decides to spread bet on the shares of Facebook, which are trading at a sell price of 187.620 and a buy price of 187.710. Believing the price of Facebook shares will fall, the investor sets a stake of £5 and opens a short position.

Unfortunately, the market moves against the investor on this occasion. The buy price rises to 187.820 and the investor closes their position. The loss from this trade would be calculated by multiplying the difference closing buy price and the opening sell price (187.820 – 187.620 = 0.2) by the stake (£5). The total loss on this trade would be £100.

Financial Spread Betting vs CFD Trading

Both financial spread betting and CFD trading are forms of leveraged derivatives trading that allow investors to speculate on the value of instruments from a range of global markets, without taking ownership of the underlying assets. The main features of each can be seen in the table below:

Financial Spread Betting CFD Trading
How it Works Trade a monetary amount (stake in £) per point of price movement Trade lots of currencies and commodities or a number of shares
Profit & Loss Calculation Multiply stake by how many points the market moves Multiply position size by number of pips lost or gained
Leverage Yes Yes
Tax-Free Profits* Yes No
Exempt from Stamp Duty Yes Yes
Go Long & Go Short Yes Yes
Trade 24/5 Yes Yes
Risk Management (S/L & T/P) Yes Yes

Who is Financial Spread Betting Suitable For?

Financial spread betting is a leveraged product and can potentially be a profitable method of investment, although it does include a certain amount of risk. As such, it may be more suitable for investors who:

  • Have a certain level of experience in the financial markets
  • Are interested in tax-free* profits that are exempt from stamp duty
  • May be looking to diversify their portfolios
  • Are more interested in short-term market opportunities

Why spread bet with LCG

7,000+ instruments
Tax-free* profits
Competitive pricing
Superior execution

*Tax laws depend on individual circumstances