Compare Trading Brokers And Spread Betting Firms
Finding the right broker is not always a straightforward task, you should know that, if you are a beginner in spread betting. There is a big chance that you get tricked by the superficialities like being attracted to brokers that offer spread betting bonuses, trading offers instead of one that offers good execution, if you lack the proper experience and ambition sometimes. You need to pay attention and compare spread trading brokers before actually deciding to work with one as there is a very high competition in this field. .You need to take into consideration the spread you might pay for every trade first. Since it is already part of the spread, making the comparison process very difficult, especially as the sizes of the bid-offer spreads differ for every market, a broker will never charge you per commission. Considering the margin requirement which can range from 5% to some 75% for some markets meaning that you only have to come up with a percentage of the whole value for each trade is needed. Remember that at the end of the day more margin equals more borrowing and you don’t really want to gear yourself to the maximum, though you want to have good margins. Not only for each market but varies greatly from one broker to another, if the percentage deposit margins different is more.
Somewhere between 3 and 30 percent, it should be normally. Most providers will offer all the major markets like the US, UK, Europe, Japan equity markets but few will quote small or AIM listed companies or even companies in emerging markets, you may compare trading brokers by the number of markets they deal with as well. If you intend to hold trades overnight, in such cases a financing interest fee is payable which can range from just 2% to 4% over Libor at some trading houses, another variable is considered. As it will greatly affect the costs of trading for holding longer term positions, consider it. Last and probably most important, check out the spread betting reviews for the brokers you are interested to. People are more biased to exposing unpleasant and unprofessional providers than posting good reviews, though they share their experiences.
You know what criteria to look after before opening an account at a spread betting provider, let’s see a few top trading brokers and people’s view. ETX Capital is one of the better spread betting providers in the world, It is not a big spread betting company but it quotes all the major markets and provides a decent all-round service. For the less experienced ones who are afraid to involve themselves with small, unknown markets, it is a good starting place. It covers more markets and offers competitive spreads and margins. In the past in City Index another good provider, the trading platform was somewhat unstable and used to time-out or result in screen freezes – however they have now released a new version of their trading platform that has solved most of these issues. Though IG Index is the oldest, grand-daddy of spread betting and quotes all the markets doesn’t excel on a particular field precisely, but it just has a little of everything, decent platform, with good graphs, not too simple and not too advanced either. The customer service is decent, fast and reliable., anyway, these four names are among the dozens out there.
Spread betting might not be suitable for all traders and investors, you need to be aware of the risks of margin trading. Likewise not all spread betting providers are created equal and you should never throw your money off the window for the first broker you encounter, compare trading brokers and their spread betting reviews in order to be able to reach a better informed decision. After all, it is an investment you make and for some people, this may be considered a business.
Author is an expert writer on compare trading brokers and spread betting reviews.
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