Accounts are usually settled weekly, with either a cheque or bill in the post. Options are available for money to be transferred into and out of bank accounts directly if clients so desire through BACS (Bankers Automated Clearing System). Depending on the firm, interest may be paid on deposit accounts (Spreadex pay a very attractive 6 per cent).
The second and more traditional type of account is a credit account. This requires providing proof of funds to the spread firms in terms of bank and building society statements usually covering three times the required weekly credit limit. So a client wanting £1,000 credit would have to show they have liquid funds to the order of £3,000. This means that cleared funds can be transferred on a weekly basis without the trouble of cheques.
Cantor’s policy is that they will retain any winnings until a client specifically indicates they would like it paid into their account. The firms also offer the opportunity to have weekly statements e-mailed to clients—both for ease and to save on postage. The regulations of the Financial Services Authority, which oversees all spread betting firms, mean that the application process is much stricter than for any other type of betting account.