If you are interested in trying your luck with spread betting, it is crucial that you choose a good broker to help you increase your chances of making money rather than money. It is worth mentioning that you should aim to have more than one spread better account, 2 or 3 at least. This way you have the best chance of making the most money by diversifying your investment choices. To help you pinpoint those good 2 or 3 that you should trust with your investments, we have put together what we believe are the five key tips you need to bear in mind.
Always Choose FCA Regulated Brokers Based In The UK
The ways FCA protects you as an investor are too numerous to mention here. Without any doubt, the most important way is that if a broker is regulated by the FCA it gives you some level of protection for your funds via FSCS. This essentially means that if your broker ever goes bust, you have the assurance that the UK government will recoup some or all you lose because of the bankruptcy.
Although the FCA often faces criticism, they have some of the strictest criteria in the world for brokers to follow. This criteria includes things like anti-money laundering, compliance and a wide selection of rules about treating their clients properly.
Ensure Any Broker You Consider Is Financially Sound
The easiest way to check if a broker you are interested in is financially sound is to ensure that they are listed on London Stock Exchange. In order to be listed on the stock exchange they have to submit to regular capital and income reports.
Take Advantage Of Welcome Bonuses
As spread betting becomes more popular and the industry becomes more competitive you will find that brokers will rebate some of the trading costs by offering a welcome bonus. This generally means that you can withdraw a bonus based on the initial amount you deposited after you have made a particular number of trades. It is one of the ways brokers reward their loyal customers.
Watch Broker Spreads Carefully
The whole inception of spread betting was because the market spreads on market prices widened to include trading costs and commission. The spread that brokers offer you the client has increased as the underlying trading and market volumes have increased.
Look At The Added Value They Offer
The truth is that all spread betting brokers offer exactly the same thing – they allow you to bet on financial markets. Therefore, in order to work out which are the best to do business with is by working what else they offer on top of this. Some for example, will offer their clients extra research, account management tools. The important thing is to ask them before you sign any contracts.
Hopefully, along with checking out the best spread betting guide in the UK, the above tips will help you find the best spread betting brokers that will make your investments go far.