I’m trying to understand how common temporary “close-only” trading restrictions are on UK retail broker platforms, especially with the increased focus on Consumer Duty and risk management.
I’ve seen cases where a broker applies a short-term “close-only” mode (no opening new positions, only closing existing ones) when a user’s trading activity is assessed as potentially risky relative to declared income or savings, even when:
• Funds are not borrowed
• Risk warnings have been acknowledged
• No obvious breach of terms or law has occurred
What I’m interested in is the broader picture, not a specific account issue:
• How common are these temporary restrictions in the UK?
• Do they typically expire automatically after the cooling-off period?
• Does updating income/savings information materially reduce the chance of future flags?
• Are students or people without fixed annual salaries more likely to be affected?
• Have people chosen to switch platforms because of how these risk controls are applied? If so are there any platforms you’d recommend?
I understand the intention is customer protection, but I’m curious how these systems work in practice and how transparent they are for users.
Would really appreciate hearing others’ experiences or general insights.