According to an announcement issued in the beginning of January by the UK Gambling Commission (UKGC) from 14th April onward clients of gambling websites will not be able to fund their bets using credit cards. Following that decision some analysts and experts have stated that it may be high time for the Financial Conduct Authority (FCA) – the UK financial regulator – to do the same, because a lot retail investors are dependent on their credit cards to make deposits to Forex and CFD brokers.
“Debt shouldn’t be creating more debt for the retail consumer”, says Rod Martenstyn, former CEO of GKFX.
While I agree that using a credit card to invest in Forex is not a particularly good idea, I do not think that regulators should police adult individuals’ behavior to such miniscule detail.
Overall it’s probably a good idea as itll prevent the impulsive traders who are still learning to deposit money from a credit card when they shouldnt. It’s not easy to trade borrowed money which you have to pay back monthly. I did it but I took a loan out not via a credit card.
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You’d be surprised how bad adults are at self-discipline. When it comes to trading, many aspiring traders want to dive in to make big bucks. Many have a gambling mindset and if they can make deposits with credit cards, they’ll go broke. When someone is broke to the extend they cannot put food on the table, they get on welfare and are now the government’s problem. This is a very good move.
There are other ways how some one can use credit card and deposit the money for trading.
Their move is one step but to make the idea behind valid they need to do more on tjis topic.
But on the other hand there are people who knows how to deal with the credit. It will be bad for them if they cannot use tool like credit card to fund trading account.