Trading Spreads

When opening a spread betting account you want to make sure your getting the best software, prices and service on offer. Due to the competitive nature of spread betting, spread betting firms will go along way to get you to use their service. Some of the key things to look out for are:

Markets/Products
When choosing a spread betting firm make sure you find out what products/markets are available. Most spread betting companies offer an extensive range of products but make sure the products you want to trade are available and are competitively priced.

The Spread
The spread is the distance between the sell price and the buy price. This is the spread betting firms margin, the closer the spreads are the lower the risk is and the quicker it will be to turn a profit. Different products have different spreads depending on how volatile they are, make sure you compare between firms, some will offer as low as 1 point spreads. Remember every penny counts when you’re trying to make a profit.

Available extras/software
Check what freebies come with the spread betting companies platform, most will give you access to graphs/charts/news etc, some will even offer real time data for free. Its worth considering a firm that offers these services for free or you could find your self paying for it from a third party.

Multiple Accounts
It’s a good idea to have multiple spread betting accounts at your disposal. Having a number of spread betting accounts will allow you to work out which platform works best for you, which is the most profitable and allow you to easily switch from one account to another should the spreads of one firm suddenly increase.

Minimum account/bet size
If you only want to stake a small amount of money it’s a good idea to find a spread betting company that allows low deposits and low bet sizes. Some spread betting firms only require a deposit of £25-100 while others may have a minimum of £500+. Minimum bet sizes also differ between firms, many now offer betting from as little as £1 per point, although some have been known to offer bets from as little as 1p per point.

Margin
The margin is the amount of money you have exposed in a open position. You will generally need 5-20% available in your account to cover the cost of your trades heading in the wrong direction. Like the spread the margin differs between product and company depending how volatile a product is. Make sure you compare the margin on the products you want to trade between spread betting firms.

Special Offers
Some spread betting companies will offer introductory offers if you sign up, deposit and begin to trade with them. Keep an eye out for these deals, some will cover your net losses for a certain period of time while others will give you a cash bonus once you begin to trade. Latest spread betting promotions

Demo Accounts
If you want to try out spread betting for free some spread betting companies offer free demo accounts. Demo accounts allow users to trade on a spread betting firms trading platform in real time with play money. It’s a great way to test out a spread betting firms platform and get to grips with how everything works before playing for real. Free Demo Accounts