Compare Spread Betting Companies
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The Spread Betting Comparison Chart gives insight into the various providers according to the value added services they bring their clients.
Be it market updates, iPhone App's, customers support, technical tools - they judge the providers according to the effort they have put into their offerings. |
| Is it possible to make money spread betting? |
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| Written by Gary Howes | |
| Thursday, 12 August 2010 15:05 | |
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Be prepared to put in the hard work, there is no such thing as easy money in life, if spread betting offered it then we would all be doing it.
In traditional gambling scenarios the 'house' always wins - simple. In spread betting this is not the case, the house, or the spread betting provider does not control the conditions in which you trade. The price you pay is based on the price set by the market, and not the whim of a bookmaker. Spread betting providers make their money on the difference between the buying and selling price, and of course on your losses. If you lose they take their money, but, I have not spoken to one spread betting executive who has not said that people who close out their accounts are ideal clients. They want you to be a lifelong client who regularly places trades, thereby regularly giving up a small spread, it is these clients who offer long term value. The spread betting provider does of course weigh the dice to their advantage through the spread itself - you start off a trade in the red, meaning you have more distance to make up before booking profit. But it is the market itself which is to blame when things go wrong. The spread betting providers report their best results when markets are choppy and unpredictable as clients end up losing more. Trending markets on the other hand are the spread bettors friend. Therefore I am of the firm belief that a long term and successful spread bettor is one that is able to maintain a cool head, develop a good strategy and take time to understand the markets.
Here is a telling point: WorldSpreads say about 10 - 15% of their clients are successful in the long term, and this has been collaborated by a number of other spread betting providers. The above two facts should be encouraging. There is no such thing as easy money in life, if spread betting offered it then we would all be doing it. So for those looking to get into the sacred 10% bracket of winning spread bettors, be prepared to put in some hard, long term work.
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| Last Updated on Thursday, 12 August 2010 15:22 |
Spread Betting Lessons - Cut out the emotion!
Oh, and also a lesson why the Stop Loss is your Friend !
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Spread betting at a glance
- Spread betting is a financial product that allows retail and professional investors access to the widest possible number and types of exchange traded instruments.
- The spread betting company that you trade through is the market maker, the trader does not actually take ownership of any underlying product. Hence, most jurisdictions do not charge stamp duty on any gains.
- The notion that you don't actually own the product ensures spread betting platforms are able to almost instantaneously execute orders on behalf of their client.
- Spread betting is a leverage product, your money is able to realise you impressive gains as your earnings come in multiples of the actual change in the underlying product that you are trading.
- This is of course where spread betting can also go spectacularly wrong. Losses can be huge, therefore we advise those that are spread betting, or are looking to go into spread betting, to enter each trade with a well thought out strategy. This also means setting a pre-determined stop loss so that losses are cut at a manageable level.
- This website is here to offer more insight into this fascinating trading instrument.