E Financial Spread Betting Brokers And Accounts

With so many spread betting firms available nowadays, what should you look out for when picking out a spread betting broker? It’s worth spending some time to compare spread betting brokers.

Reputation and Credibility of the Company: The first thing I tend to look for is a strong reputation, at least with some history. If you’re going to deposit large amounts of money with your broker such as £1,000+ than you need to be selective with which company you choose to use.

Leverage, Margin and Deposit Requirements: Traders prefer accounts that give them the higher leverage and deposit margins possible. For example, Capital Spreads offers a margin of 10:1 which means that if you deposit £100 you can take up positions worth £1,000 whilst being leveraged against the company. The higher the leverage, the better the financial spread betting broker because this allows you to trade on smaller capital deposits whilst making large profits speculating on movements in the markets.

Tight Spreads: The spread is a measurement of the commission that the company takes in all of your trades. It is the difference between the offer price and the bid price (aka buy and sell price). A tighter spread on markets allows you to make higher profits in your trades. Normally you should look out for 1 point spreads.

Demo Accounts: Most spread betting platforms offer demo accounts that allow you to sign up using your details and practice using the software without depositing any money. Instead, you are given free money to invest (e.g. $50,000 in play money), and you can speculate on the different virtual markets, monitor your trading positions, and use the different stop-loss and limit order features.

Spread Betting Broker — Choosing the Right One

The number of spread betting brokers there are these days just astounds me. Every time I check them out there are more and more. It might be difficult for a beginner to sift through all of these as they don’t know what to look for.

Do you want to do sports betting or financial betting? There are spread betting accounts that do both and then there are those that specialize. You need to be 100% sure of this when you begin and stick to what you have selected for a while.

You want to be interested in keeping the costs of your trades down. Spread betting companies make their profits from the spreads of the trade as they don’t charge a commission, so make sure you compare spreads. This means that you want your broker to offer small spreads.

If you are doing financial trading then it is crucial that you can trade in the instrument of your choice. If you want to trade in gold then it is important that the broker offers commodities. If you want to trade in individual stocks then make sure they don’t restrict you to trading indices.

Have you thought about opening 2 trading accounts? It can be really useful in assessing the quality of the spread betting companies. Don’t worry about this too much when you are a beginner but as you progress then this is definitely an option.

Research Financial Spread Betting Companies and Platforms

When you are researching and comparing brokers and deciding which spread betting company to open an account with, we all know that tight spreads are important, but why are tight spreads so important, and should they be the only thing that you consider when making this decision?

1 2 3 4
View single page >> |

Disclosure: None.

How did you like this article? Let us know so we can better customize your reading experience.


Leave a comment to automatically be entered into our contest to win a free Echo Show.