In recent years the financial spread betting market has grown exponentially, becoming saturated with brokers offering a plethora of often unnecessary add-ons. Find a brokerthat does the basics well, such as Core Spreads, and you can focus on your trading.
- Which markets?
Every trader should thoroughly research the markets they are most interested in before choosing a broker. Unless you know the markets that best suit your trading style you won’t be able to make an informed decision on which broker is going to offer you the best service.
- Tight spreads?
Spread price is normally the largest cost of financial spread betting. Unlike CFD trading, you don’t have to pay commission to place a spread bet; the broker makes their money from the difference between the buy and sell price (the spread), that is locked in to every winning or losing trade you make.
One easy way of keeping trading charges down is to choose a broker that offers the tightest spread in the markets you want to trade.
- Which platform?
Modern technology has revolutionised financial trading and most brokers now offer a high standard trading platform. For traders with busy lives a easy-to-use mobile app is essential to executing all your trades on the move. Finding a broker with a reliable platform can help avoid frustration further down the line.
- Customer service?
Should something go wrong, you will want to be able to talk to somebody sympathetic to your situation. Finding a broker that values treating their customers fairly means you can spend your time trading rather than shouting down the phone.
- Regulation and segregated funds?
Checking that your provider is FCA regulated is vital to ensuring that you are treated fairly. When researching brokers look for an FCA firm reference number.
In the UK, firms should also operate under the Financial Services Compensation Scheme (FSCS). This means that your funds are covered up to £50,000 in the event that the broker goes out of business. The more prudent financial spread betting providers will also hold their clients’ funds in a separate bank account from the business, ensuring your money is safe should the firm stop trading.
Financial spread betting and CFDs are leveraged products, which means losses may exceed deposits.
