SPREAD BETTING - COMPARE SPREAD BETTING FIRMS (EURO)
Financial Spread Betting involves speculating on whether the value of a market or a company's share price will rise or fall. An individual is not buying any shares, but betting on their movement, so spread betting traders can actually make money when prices drop. Profit or loss is decided by the placed stake multiplied by each point that the market has moved - so the amount you lose or gain is decided by the level of market movement. Before you start trading make sure you know the facts and that you fully understand the risks involved.
A spread betting company will offer you a spread. That means they are quoting you a buy and sell price on a share. You then decide an amount you wish to bet on - this can be as low as £1 but can be a much larger amount. You bet on which direction the movement of the spread price - so whether the market will rise or fall. Therefore, if your bet is incorrect, your loss can increase significantly if the markets move against you - ie if it does the opposite of what you bet. Financial spread betting is closely regulated by the FSA in the UK.
If you are planning to start spread betting then it is really important that you are aware of the risks involved. The main risk is that you can lose a lot of money very quickly. Unfortunately, in some cases you will be required to pay more funds in order to cover your loss. It is necessary to learn as much about the industry as you can before you start spread betting. Some companies offer demo accounts so you can have a go before doing it for real. It is important that you take the time to research the market. You can compare financial spread betting firms below.
| PROVIDER | ESTESTCompany established | SPREAD TYPESPREAD TYPEFixed / Variable | SPREADSPREADSpread betting is a derivatives product that allows you to trade on the price movements of thousands of financial markets including indices, shares, currencies etc | DEPOSIT MARGINDEPOSIT MARGINMoney offered upfront for the security of the spread bet | O/N INTEREST (LONG)O/N INTEREST (LONG)Long Overnight interest charges | O/N INTEREST (SHORT)O/N INTEREST (SHORT)Short Overnight interest charges | TRADE MINTRADE MINMinimum trade | BINARY BETTINGBINARY BETTINGBinary betting available | ACCOUNT MINACCOUNT MINMinimum account | ACCOUNT MAXACCOUNT MAXMaximum account | MORE INFO |
Capital Spreads | UK 1996 (FSA) | Fixed / Variable | 1 pip From 1 pip Indices, 2 pip FX, 0.1% equities | 3-15% Depending on contract | +2% RFR (Relevant Funding Rate) | -2% RFR (Relevant Funding Rate) | 100p per point |  | £0 | Unlimited |  |
| Capital Spreads is a division of London Capital Group Holdings plc, an AIM listed Financial Services organisation. Capital Spreads' is one of the UK's leading financial spread betting companies offering great value for money and an unrivalled customer service to our clients. The main cost to financial spread betting clients is the spread (the difference between the sell and buy price). The wider the spread, the more costly it is for you to trade. Capital Spreads offers some of the tightest spreads available compared to the competition. DETAIL INFORMATION >> | Markets Covered Products Available 9 Base Currencies Demo Account | ||||||||||
ETX Capital | UK 2002 (FSA) | Fixed / Variable | 1-4 pips From 1 pip Indices, 2 pips FX, 0.1% equities | 1-50% Depending on contract. | +2.5% LIBOR or equivalent | +2.5% LIBOR or equivalent | 50p per point |  | £100 | Unlimited | |
| ETX Capital is a spread betting company based in the City of London. In addition to offering CFDs and Spread Bets on thousands of markets covering the world’s major indices, equities (share prices), commodities, options and FX markets. Our recently launched spread betting trading platform gives you access to the world's markets with minimum bet levels of 50 pence per point to maximum bet levels of £500 per point or more depending on the markets and type of service. ETX additionally offers free advanced charting packages, webinars and seminars. DETAIL INFORMATION >> | Markets Covered Products Available 5 Base Currencies No Demo Account | ||||||||||
Gekko Global Markets | UK 2007 (FSA) | Fixed / Variable | From 0.001% Depends on product | 5-15% Depends on product | BOE rate +2% | BOE rate -2% | 20p per point | | £50 | Unlimited | |
| 25% Cash Bonus on initial deposit, up to £500 (T&C apply)! Gekko Global Markets Ltd. is a dedicated service provider for spread betting, CFD and FX trading. The company was founded in 2007 and has already established a presence throughout Europe. Gekko’s proprietary trading platform is designed by a team of experienced traders. The platform’s user-friendliness and execution speed have gained trust from both new and sophisticated traders and spread betting enthusiasts. Please read the terms and conditions carefully before investing. DETAIL INFORMATION >> | Markets Covered Products Available 4 Base Currencies Demo Account | ||||||||||
City Index | UK 1983 (FSA) | Fixed | From 1 pip Depending on product. | From 1% Depending on product. | +2.5% LIBOR or equivalent | -2.5% LIBOR or equivalent | 50p per point | | £0 | Unlimited | |
| City Index is one of the World's leading providers of Contracts for Difference, foreign exchange, options and financial spread betting services. With over 25 years in the market, we are committed to providing fair and transparent prices, innovative technology and great customer support. Open a spread betting account in minutes. Remember that most people spread betting are wiped out in the first month so if you are not a professional it is worth using a simulated trading platform to practice. Please make sure that you read the terms and conditions. DETAIL INFORMATION >> | Markets Covered Products Available 3 Base Currencies Demo Account | ||||||||||
Spreadex | UK 1999 (FSA) | Fixed | Spread on each market See site for details | From 5% See detail info | +3% LIBOR or equivalent | -3% LIBOR or equivalent | 100p per point | | £100 | Unlimited | |
| Formed in 1999, Spreadex is one of the longest-established financial spread betting firms in the industry and the only company to offer financial spread trading, sports spread betting and sports fixed odds betting from the convenience of one account. Spreadex was formed by former City dealer Jonathan Hufford, who was hooked on the sheer fun offered by spread betting. He decided to set up his own company but to make spread betting much more user-friendly. Since its inception, Spreadex has developed a reputation for great customer service. DETAIL INFORMATION >> | Markets Covered Products Available 2 Base Currencies No Demo Account | ||||||||||
Cantor Index | UK 1998 (FSA) | Fixed / Variable | From 1 pip 1 tick FX, 2 tick indices,0.3% equities | 2.5%-70% Depending on contract | Currently between LIBOR +1.75 and 2.5% | Currently between LIBOR +1.75 and 2.5% | 100p per point | | £0 | Unlimited | |
| Cantor Index is a leading financial spread betting company, established in 2000, offering spread bets on a wide range of global markets including indices, equities, foreign exchange and commodities. Spread betting is margin trading on financial products allowing clients to profit from both rising and falling markets. At Cantor Index we are dedicated to offering our clients value spread betting. As a result on our Daily Rolling Spot FX we offer 1 tick spreads on 2 of our major currency pairs. Read the terms and conditions before investing. DETAIL INFORMATION >> | Markets Covered Products Available 3 Base Currencies No Demo Account | ||||||||||
ProSpreads | Gibraltar 2005 (FSC) | Fixed | 0.25–0.5 point Fixed around underlying | 5–15% Exchange margin x 5 | No interest charges | No interest charges | 300p per point | | £1,000 | Unlimited | |
| ProSpreads is unique in that it provides users with the same functionality that is available from a Direct Market Access broker. As a result attracts the serious speculator who is looking for that extra edge. ProSpreads references its spread betting price directly from the underlying market price. This means that whatever the underlying price is the spread bet equivalent will be reflected. So you cannot be re-quoted and the price cannot be moved to extremes away from the underlying price. Professional spread betting for the serious player. DETAIL INFORMATION >> | Markets Covered Products Available 3 Base Currencies Demo Account | ||||||||||
Compare Spread Bettings Companies
What is Financial Spread Betting?
Financial spread betting is sometimes compared to CFD trading. The trader predicts whether market or share value will go up or down. The trader doesn’t actually own the share and profits are made through the margin.
When spread betting the trader does not need to pay any commission. This is because the financial spread betting firms do not charge commission in the usual way. Spread betting companies charge a wider bid offer spread above the actual market price. Financial spread betting is not subject to capital gains tax.
Financial spread betting positions are usually closed at the end of each day so there are fewer financial charges in comparison to say CFDs which can carry over a long period of time.
How does Financial Spread Betting Work?
The investor is given a spread on a live underlying market price on a chosen stock or share. He or she then speculates on whether this market price will increase or decrease. Financial spread betting always uses one currency so investors are saved the extra cost of foreign exchange rate fees.
How do you make a profit or sustain a loss?
If the investor bets correctly, and the market moves in the way they have speculated, they make a profit of their stake multiplied by each point the market moves in their favour. However, if the market moves against the trader, then they will endure the loss of their stake times by each point the market moves against them.
How is Spead Betting Regulated?
Financial spread betting is closely regulated by the Financial Services Authority in the UK. Whilst many compare financial spread betting and regular gambling, spread betting is in fact a financial derivative product and therefore companies offering trading tools must abide by strict guidelines, rules and regulations. However, like gambling the profits made from financial spread betting are not taxed.
The advantages and disadvantages of spread betting
The advantages of financial spread betting include tax and commission free trading. There can also be a good benefit in being able to speculate on versatile markets. You also can profit whether markets rise or fall. You do not need a huge amount of capital to start spread betting.
There are disadvantages to spread betting which it is important to consider before you start. Financial spread betting is a high risk activity and a large proportion of spread betting accounts are wiped out within the first six months. It is possible to make substantial losses through spread betting and some of the markets are extremely volatile which increases the risk even further. It is worth researching spread betting in detail before you start.
What Are the Spread Betting Risks?
If you are planning to start spread betting then it is really important to be aware of the risks before commencing. It may also be worth seeking independent financial advice. Financial spread betting is not really suitable for beginners. You can lose a lot of money very quickly and more than your original deposit. It is possible that you will be required to pay more funds in order to cover your loss.
If you do not know about spread betting you should try a 'demo account', which most financial spread betting companies offer online. That way, you can learn to spread bet and see if it is the right course for you. Some services even provide an automatic stop loss action on each position.
Spread Betting Gallery
Cantor Index Spread Betting
Capital Spreads Spread Betting
City Index Spread Betting
ETX Capital Spread Betting
Finotec Spread Betting Spread Betting
Gekko Global Markets Spread Betting
IG Index Spread Betting Spread Betting
MF Global Spreads Spread Betting
ProSpreads Spread Betting
SpreadCo Spread Betting Spread Betting
Spreadex Spread Betting
WorldSpreads Spread Betting
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