A comparison of some of the leading spread betting companies covering the services offered, the spread betting markets offered, individual spread betting company reviews and trading offers.
Spread Betting Company Services:
Spread Betting Company Review
New Account Offer?
Trading Charts?
24 Hour Spread Betting?
Stop Losses Available?
Guaranteed Stop Available?
Demo Account?
Regulated by?
Spread betting services may also be available from other companies. Notes.
Spread Betting Companies - European Index Markets:
FTSE 100
FTSE 250
DAX 30
CAC 40
Other European Indices
European Stock Market Index spread betting markets may also be available through other companies. Notes.
Spread Betting Companies - US Index Markets:
Dow Jones (Wall St)
S+P 500
NASDAQ 100
Other US Indices?
US Stock Market Index spread betting markets may also be available through other companies. Notes.
Spread Betting Companies - World Index Markets:
Nikkei 225
China
Hong Kong
Indian Nifty 50
Other World Indices Markets?
World Stock Market Index spread betting markets may also be available through other companies. Notes.
Softs spread betting markets may also be available through other companies. Notes.
Spread Betting Companies - European Shares:
FTSE 100 Shares
FTSE 250 Shares
DAX 30 Shares
CAC 40 Shares
Irish Shares
Other European Shares
Spread betting markets on European Shares may also be available through other companies. Notes.
Spread Betting Companies - US Shares:
Wall Street Shares
S+P 500 Shares
Nasdaq 100 Shares
Spread betting markets on US Shares may also be available through other companies. Notes.
Spread Betting Companies - World Shares:
Australian Shares
Indian Shares
South African Shares
Other World Shares?
Spread betting markets on World Shares may also be available through other companies. Notes.
Spread Betting Companies - Bonds Markets:
BOBL
Bund
Gilt
Schatz
US T Bond 10 Year?
Other Bonds Markets?
Bonds spread betting markets may also be available through other companies. Notes.
Spread Betting Companies - Interest Rate Markets:
Euribor
Eurodollar
Short Sterling
Other STIRs?
Interest Rate spread betting markets may also be available through other companies. Notes.
Spread Betting Companies
Spread betting offers a range of benefits over traditional share trading such as the fact that it is tax free* and the ability to trade quickly as well as being able to trade some markets 24 hours a day.
However, if you decide to spread bet, you should know the risks, and you should also take some time to consider which spread betting company is right for you.
No Tax*, Commissions or Brokers’ Fees
Unlike trading stocks and shares, when you place a spread bet on a financial market, you are not actually buying or selling assets; you are merely speculating on the whether a market will move up or down. As a result, spread betting is tax free*. It is important to note, however, that UK tax laws could change in the future.
Another benefit of online spread betting over traditional share trading is that there are no commissions or brokers’ fees in financial spread betting.
Spread Betting Companies offer a Range of Markets
The vast range of financial markets on which you can trade makes spread betting an investment option worth considering.
Spread betting companies tend to offer thousands of markets such as UK and US Equities, Indices such as the FTSE 100 or the Dow Jones Industrial Average, Commodities such as Oil and Gold as well as a range of FX pairs such as the Dollar/Yen or the Euro/Pound exchange rates.
Close or Part-Close Your Trade
When you have placed a spread bet, you can close a winning trade and bank a profit, however you can also close a losing trade in order to limit your loss.
Being able to part-close a bet also offers an interesting angle. Part closing a spread bet essentially means that you close one portion of your trade, and keep the rest of it open. This can be used to help lock in profits and restrict losses.
Spread Bet on Financial Markets to go Down as well as Up
Unlike traditional share trading, you can speculate on a financial market to go both up and down; spread betting lets you trade in both directions. If you think a forex pair such as the Sterling/Dollar exchange rate will rally, you can spread bet on it to go up. If you think the price of a commodity such as Gold, Oil or Copper will drop, you can bet on it to go down.
Spread Bets Often Accepted Instantly
With financial spread betting you do not actually buy or sell any assets. You are only speculating on the future price or level of a financial market. The result is that spread trades are often accepted by the spread betting companies automatically or, at least, in a matter of seconds. This is an important benefit in fast moving markets.
Some Spread Betting Companies Offer 24 Hour Trading
Certain firms have started to provide genuine 24 hour trading. The main London Stock Exchange may close at 4.30pm but with spread betting companies like Financial Spreads you can still trade the FTSE 100, DAX, the key FX markets, gold, crude oil and a range of other markets throughout the night.
Know the Risks of Spread Betting
Any form of speculative investment does have its risks, but there are several steps you can take to reduce this.
Keeping your stake size small is a useful risk management technique. Also, a number spread betting companies allow you to place a Guaranteed Stop Loss on your trade, which can help to reduce the risks. Placing a Guaranteed Stop Loss allows you to limit the amount of money you can lose.
A Guaranteed Stop Loss in as automatic order to close a trade if the market moves against you. Once the market reaches your Guaranteed Stop Loss level, your trade will be closed. So, whilst you will have lost money on the trade, you won't lose any further funds even if the market continues to move against your original bet.
Free Information on Financial Markets
A number of spreads companies offer free financial information to help their clients. Some spread betting companies such as Financial Spreads offer free technical analysis as well as Heat Maps which show the stocks that are going up and down. Webinars, seminars and video tutorials are also offered by certain trading firms.
Note - Spread Betting carries a high level of risk to your capital and you can lose more than your initial investment, it may not be suitable for all investors. Ensure you only speculate with money that you can afford to lose and that you fully understand the risks involved and seek independent financial advice where necessary.
'Spread Betting Companies', review by D. Jones, last update: 3-Feb-12
Related articles:
Spread Betting Companies, 3-Feb-12,
Spread Betting Companies - a comparison of some of the leading spread betting companies covering the spread betting markets offered, individual spread betting company reviews, the services offered, where to trade, trading offers and...see: Spread Betting Companies
Why Day Trade and Spread Bet?, 2-Feb-12,
In part 1, Spread Betting and the Downside to Day Trading, we discussed some of the negatives and pitfalls of day trading and spread betting. But what about the positives? What are the benefits for the day traders who like the...see: Why Day Trade and Spread Bet?
Day Trading and Spread Betting, 7-Aug-09,
Day Trading and Spread Betting, the perfect match or the regulators nightmare? Amongst other things, regulators like the Financial Services Authority are supposed to protect the retail investor (that's you and me). However, Day Trading and Spread Betting combine to provide...see: Day Trading and Spread Betting
Spread Betting on the Housing Market, 16-Oct-08,
Spread Betting on the Housing Market: If you are considering trading UK house prices then it is worth noting that if you spread bet on house prices you can gain a simple exposure to fluctuations in ...see: Spread Betting on the Housing Market
Spread Bets on Retail Sector Shares, 16-Oct-08,
Spread Bets on Retail Sector Shares: Long term share based Investors and short term spread betting investors will be looking to focus on those whose underlying costs are below the norm and the biggest differential must be on the ownership of the...see: Spread Bets on Retail Sector Shares
Spread Trading the Banking Sector, 19-Sep-08,
Spread Trading the Banking Sector: Unfortunately if a bank lends you money it, not unreasonably, wants to make a profit on the deal. If they can only get hold of funds at 6% then they...see: Spread Trading the Banking Sector
Spread Trading Directory, 3-Feb-12,
Spread Trading Directory: A list of trading resources from spread betting companies to trading tips as well as useful external links...see: Spread Trading Directory
Looking to improve your trading results? Get free trading tips and trading analysis as well as the latest trading offers »
Trading News.
2,000+ Markets: Forex, Shares, Indices & Commodities
Risk Warning - Spread betting carries a high level of risk to your capital & you may lose more than your initial investment. Only speculate with money that you can afford to lose. Please ensure you fully understand the risks involved, seek financial advice where necessary & make sure spread betting meets your investment objectives.
The above information is correct at time of writing. The spreads quoted are for Rolling Daily markets and may vary out of hours. † Tax Law can change.
FinancialSpreads.com is a trading name of London Capital Group Ltd which is authorised & regulated by the Financial Services Authority (FSA). Registered address: is 4th Floor, 12 Appold Street, London EC2A 2AW. All information correct at time of publication.
Risk Warning:
Spread Betting carries a high level of risk
to your capital and you can lose more than your initial investment,
it may not be suitable for all investors. Ensure you only
speculate with money that you can afford to lose and that you fully
understand the risks involved and seek independent financial advice where necessary.
Disclaimer:
Online-Spread-Betting.com does not endorse the information and
analysis available on this site. It is provided purely for information
purposes and is delivered as a personal view of the writer. Under no circumstances
is the information hereon to be used or considered as, an offer to sell, or a
solicitation of any offer to buy. The website content does not constitute investment
advice and neither the individual contributor nor Online-Spread-Betting.com accepts any
responsibility for any use that may be made of the content.
* Tax Free Trading:
Tax law is subject to change. It may also differ if you pay tax in a jurisdiction outside the UK.