FSCS pays out £5.7m over CfD trader Direct Sharedeal

The Glasgow-based stockbroker entered administration in 2011 after alleged mismanagement of high risk CfD investments, with many investors claiming their accounts were overtraded leading to substantial losses. CfDs are highly-leveraged investments which open investors up to increased speculative gains but also large potential losses. The FSCS scheme - which is paid for by levy payers - began compensating Direct Sharedeal investors in February. So far it has received 453 claims against the firm. A FSCS spokesperson confirmed that the costs related to Direct Sharedeal claims will fal...