Feeds

Caribbean bookies takes on the world's brokers

A real example of Internet empowerment -- for better or worse

  • alert
  • submit to reddit

Internet Security Threat Report 2014

IndexTrade.com is to offer Web users the opportunity to buy and sell from stock market indices usually only available to professional traders, even though the company has nothing more than a gaming licence from the government of Antigua. The service allows investors to bet on whether major indices such as the Dow Jones or FTSE100 index will go up or down during that day or week. As such, it is cutting deeper into the privileged financial options of market insiders and breaking down old-school financial barriers. However, any dealings in derivatives come with a host of warnings, and the site is being investigated by the UK's Financial Services Authority (FSA). Betting on indices is an extremely risky business and not for the uninitiated. The IndexTrade service is only the latest instalment in an ongoing argument over the pros and cons of online trading. Brokers have taken the high ground and warned of ignorant individuals bankrupting themselves and destabilising the economy. On the other hand, traders attack the elitist approach of brokers who have a vested interest in protecting transaction costs. Those investing their own cash are more likely to be careful. Plus, say critics, no Internet user is likely to lose £860 million in one transaction -- as Nick Lesson did when he bet on the Nikkei 225 index rising. It didn't and Barings Bank fell. With one in four stock trades now taking place over the Internet, online services will become increasingly important and are set to outstrip legal constraints. With IndexTrade, the FSA has admitted it has no authority to prevent UK surfers from taking advantage of its service. ® Related Stories Woman walks away from $70k online gambling debt

Top 5 reasons to deploy VMware with Tegile

More from The Register

next story
Bono apologises for iTunes album dump
Megalomania, generosity and FEAR of irrelevance drove group to Apple deal
HBO shocks US pay TV world: We're down with OTT. Netflix says, 'Gee'
This affects every broadcaster, every cable guy
Facebook, Apple: LADIES! Why not FREEZE your EGGS? It's on the company!
No biological clockwatching when you work in Silicon Valley
SCREW YOU, EU: BBC rolls out Right To Remember as Google deletes links
Not even Google can withstand the power of Auntie
Arab States make play for greater government control of the internet
Nerds told to get lost in last-minute power grab bid at UN meeting
Zippy one-liners, broken promises: Doctor Who on the Orient Express
Series finally hits stride, but Clara's U-turn is baffling
Don't bother telling people if you lose their data, say Euro bods
You read that right – with the proviso that it's encrypted
America's super-secret X-37B plane returns to Earth after nearly TWO YEARS aloft
674 days in space for US Air Force's mystery orbital vehicle
10 Top Tips For PRs Considering Whether To Phone The Register
You'll Read These And LOL Even Though They're Serious
prev story

Whitepapers

Forging a new future with identity relationship management
Learn about ForgeRock's next generation IRM platform and how it is designed to empower CEOS's and enterprises to engage with consumers.
Win a year’s supply of chocolate
There is no techie angle to this competition so we're not going to pretend there is, but everyone loves chocolate so who cares.
Why cloud backup?
Combining the latest advancements in disk-based backup with secure, integrated, cloud technologies offer organizations fast and assured recovery of their critical enterprise data.
High Performance for All
While HPC is not new, it has traditionally been seen as a specialist area – is it now geared up to meet more mainstream requirements?
Saudi Petroleum chooses Tegile storage solution
A storage solution that addresses company growth and performance for business-critical applications of caseware archive and search along with other key operational systems.