Selecting Spread Betting Companies

If you are thinking about trading using financial spread betting then you need to think about selecting an account from one of the spread betting companies there are in the market. There are lots of them to choose from and it can seem quite overwhelming when you first start searching.

Is the number of spread betting companies a bad thing? While it does imply they are making profits to attract in further competitors, increased competition has its advantages. You the customer benefit because they are competing with each other to stand out to be selected.

The first check you need to do is make sure they are regulated. The Financial Services Authority should regulate all spread betting companies. Make sure that the one you select is regulated too.

People dismiss dummy accounts as only being there for beginners. I believe that it is essential that beginners use dummy accounts to begin with. While it is not the practicing that benefits the more advanced trader, it does give you a chance to check out a number of spread betting companies to see if you like their accounts.

Should you filter spread betting companies based upon cashback? It is rare to find a company that isn't using cashback as a way of attracting new customers these days. Yes it is great but remember you get it for a reason. They expect to make more money from you in the long run. Feel free to take it but only if you would've selected that account anyway.

The most important thing for me when I am opening an account is the spread size. Spread betting companies don't charge you a commission. They make money through the size of the spread. As already mentioned, they make a lot of money so you need to make sure that this is as low as possible. Each market is different so don't just assume because the spreads are low in one they will be a low in others.