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Spread betting is one of several methods to profit from financial markets. To explain how it works, spread betting can be defined as making a bet on the price movement of a given security.
What does the procedure of spread betting look like? A spread betting company or a broker quotes two prices, i.e. the ask and the bid price. Your task is to bet whether the price of the original asset will be lesser than the bid or on the other hand higher than the ask. Just like in CFDs trading, in spread betting you do not own the original asset. Instead, you speculate on the price movements of the selected asset. Please note that spread bets are greatly leveraged products. This means that the probability of high returns increases losses as well.
In spread betting, an expert broker can play an important role in your future achievement. This being case, let’s discuss how to find the best financial spread betting companies.
Criteria for Selecting a Spread Betting Company
After reviewing different spread betting providers, we finally came up with some factors that could help a lot when you compare spread betting companies. Whether you are an experienced spread better or just starting out, considering these features is important:
- Positive history and feedback
- Regulation
- Size of the spread
- Minimum deposit and Minimum bet size
- Risk Management
- Capital Protection
- Trading Platform
Now let’s take a closer look at these criteria.
The best spread betting brokers should keep your hard-earned money in a separate account. This means that the brokerage firm has no access to your funds and will not use your money for its personal operations.
The spread betting firm has its personal account. The fees that you pay the broker are going directly to this account, comprising the spreads. If you sign up with a broker that does not separate your funds from the company’s, you may be trapped in an unpleasant situation. The brokerage firm could go through serious financial adversities. As the result, the mainstream of customers can lose confidence in the company and decide to withdraw their money.
Therefore, it might be difficult for the firm to find adequate funds to meet all the withdrawal requests. Though this is rather an exception than the usual case, you can never have too much security.
If you deposit money, you will not actually see any difference between firms that separate funds and those that do not, thus it is better to ask the spread betting broker about this feature before signing up with them.
Recommended Spread Betting Companies at ForexSQ
ForexSQ is one of the best sources of Forex brokers at this time. This is why it is no surprise that we recommend their spread betting services as well. The brokers forex betting platform listed at ForexSQ is appropriate for each type of trading and for all conditions on the spread betting, so they are the best in the marketplace!
The Bottom Line
Spread betting can become a good stratagem to trade financial markets. Maximum brokers permit quite diverse assets available for speculation, i.e. commodities, stocks, metals, indices. Furthermore, you can even find a Forex spread betting company to bet on several currencies. Moreover, with the wide variety of markets accessible, spread betting allows you to go long and short, delivers a lot of leverage and delivers certain tax profits.
Although spread betting itself has lowered the barriers to entry for several retail investors, it is important to find a trustworthy broker to trade at in the long run.
To review and compare spread betting companies and get latest news about spread betting brokers please visit www.ForexSQ.com.
