Financial spread betting can be risky. Stock markets, commodity prices and exchange rates can all change quickly and so it’s easy for a profit to turn into a loss in a matter of minutes.
So, if you’re looking to profit from betting on financial markets, it can take time to develop your strategy and your skills.
Of course, doing this with your own cash can result in losses so many companies now let you set up virtual spread betting accounts. These are a good way of helping you to improve your betting skills before you start using money.
What are virtual spread betting accounts?
Many spread betting companies now offer a ‘spread betting demo account’ when you sign up to their service.
Virtual spread betting accounts offer you the opportunity to practice financial spread betting without using any of your own cash. You can undertake the same ‘buy’ and ‘sell’ trades on shares, currency and commodities but the losses are all virtual.
A spread betting practice account lets you understand the market, learn how spread betting works and test various strategies before you take the plunge with real money. It’s an excellent way for you to get used to the dealing process and to understand the risks involved when financial spread betting.
Finding the best virtual spread betting accounts
Not all financial spread betting companies offer a virtual trading service. So, if you’re looking to practice or get used to the process before you start betting your own money, it’s important that you undertake a spread betting comparison to find the right firm for you.
There is a lot of competition between financial spread betting companies so if you search you will find a competitive deal.
Primarily they compete on the basis of their small spreads (the difference between their ‘buy’ and ‘sell’ price) whilst offering a range of ways for you to place bets such as online or on your mobile phone. Many also tempt you with financial spread betting offers such as cashback or bonus credit when you sign up.
However, if you want to get used to financial spread betting and learn tips and strategies before betting your own money, finding a service with a spread betting practice account is crucial.
You can use our virtual spread betting account comparison to find and compare companies that offer virtual financial spread betting accounts where you can hone your skills.
You should then look at each account in more detail to discover which offers you the best deal once you are ready to start trading.
Remember to check what the margin requirement is for the type of trade you want to place, and whether a guaranteed stop loss facility is available.
