Financial spread betting allows you to profit on correctly predicting the values of shares and other commodities. Here's how to find the best online spread betting account for the trades you want to make.
Financial spread betting has grown in popularity over recent years and it is now possible to make money from correctly predicting changes in the price of oil or shifts in the value of the FTSE - all from your own home.
You do also need to be aware that you need to exercise caution if you want to minimise your losses, however, there are tools that can be used to do this.
Many spread betting companies now offer an online spread betting account where you can bet in real time on the internet. This is an easy, convenient and cheap way to place a financial spread bet.
However, with dozens of companies to choose from, it’s important that you compare online spread betting companies before you sign up for an account.
How to compare online spread betting platforms
Not all online spread betting companies offer the same facilities and apply the same charges so it’s important that you compare your options before you sign up for an account.
When you're looking for the best online spread betting account there are various factors that you should consider, including:
- The 'spread’. This is the difference between the ‘buy’ and ‘sell’ price for the main financial bets such as the FTSE 100, Wall Street or the GBP/EUR exchange rate. Ideally, you would consider an online spread betting account with smaller point spreads
- Does the company offer a range of ways to trade? For example, as well as spread betting online, do they also offer virtual or mobile trading?
- What markets does the financial spread betting company offer? Make sure the company offers the markets you want to bet on. For example, some companies don’t allow you to bet on house prices, interest rate futures or on individual shares
- What are the minimum and maximum ‘per point’ bets that you can place?
- What the initial margin requirement is (you use this to work out the minimum bet you can place)
- Whether tools like a stop loss facility is available.
If you compare online spread betting platforms onn these criteria you should be able to narrow down your options to just the spread bet accounts that allow you to trade in the way you want to for the lowest cost.
It's then important to compare the application criteria for opening the online spread betting account you're most interested in, check the tools they provide to facilitate trading, and find out about any special offers that are available such as cashback or bonus credit for new account holders.
Once you have this information you'll be able to make an informed decision about which online spread betting account is going to work best for you and apply.
