What Does FI Do With Our Money?



  • So, as more and more money is being invested in FI, I'm starting to wonder what does FI do with the money? Don't get me wrong, I love the platform and benefiting from the increases as much as everyone else, but with the amount of money some investors pump in, its starting to look more like a bank than a betting company. Although, seemingly without any large scale protection or security.

    Large deposits (£1000+) are made frequently, and I wonder:

    1. Does FI invest the money in the real stockmarket and make money from that to keep itself profitable?
    2. Does it use the money for company overheads? Or is this funded from outside investment?
    3. What would happen if everyone (or the majority of users) wanted to take their money out? Sorry to give a negative scenario, but the question does need to be asked.

    To be clear, I believe 100% in the platform and can only see it growing, but sometimes feel slightly uncertain about what could happen? I guess it's just seeing such big increases makes me nervous in a strange sort of way. I understand the advice about only betting what you can afford to lose, but still - I regularly see portfolios of £10k+ and even £100k+ which for most are large amounts of money which people can't really afford to lose.

    Plenty of online games etc where you pay your fees annually and monthly for a service which goes towards the running and a little profit. No problem if it collapses, you just stop subscribing, but FI is totally different - massive deposits with little withdrawals and payouts in comparison.

    Any thoughts?



  • I could be wrong but I believe our money it's ring fenced. Many gambling website have a pop up that says some thing along the line of deposits are ring fenced in a protected account. I could be massively wrong as I don't really read small print :)



  • You can read about it in the Terms & Conditions section 14. They seem to be holding our funds in a separate investment account. In Sweden that would make our funds protected in case of insolvency but I don't know how it is in the UK :)



  • I don't think the segregated accounts help much in the UK because in the case of insolvency, the administrators can take the money. They tend to charge thousands of pounds per hour and take months to complete the administration, which uses up all of the money.

    This government petition was raised on the topic. It mentions the collapse of stock broker platforms but presumably the same applies to any platform that holds client money:

    https://petition.parliament.uk/petitions/222801?mc_cid=f2579cfa64&mc_eid=d2de681922



  • @metropolis

    Deposits are ringfenced and legally protected.



  • @NewUser161299 said in What Does FI Do With Our Money?:

    I don't think the segregated accounts help much in the UK because in the case of insolvency, the administrators can take the money. They tend to charge thousands of pounds per hour and take months to complete the administration, which uses up all of the money.

    This government petition was raised on the topic. It mentions the collapse of stock broker platforms but presumably the same applies to any platform that holds client money:

    https://petition.parliament.uk/petitions/222801?mc_cid=f2579cfa64&mc_eid=d2de681922

    There are tighter rules on gambling deposits (where you're classed as a customer) that on stock market investments (where you're classed as a part owner of the company). A bit weird and counter-intuitive but we're in a safer position than you suggest.



  • @playingcards1 as an online poker vet (very comparable to the way the index works and is regulated) i've looked into this in the past, and this is unfortunately not the case. If the company going into administration, the funds are treated as company assets.

    In practice, if the funds are truly ringfenced then everyone still gets paid (although in the index's case the owed amount would be harder to come to than money sitting in a poker/betting account).


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