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Compare Spread Betting Companies

February 25, 2012 | Comments: 0 | Views: 169

When you are researching brokers and deciding which company to open an account with, we all know that tight spreads are important, but why are tight spreads so important and should they be the only thing that you consider when making this decision?

The main cost to financial spread bettors is the spread, the difference between the offer and the bid, which is why the closer the spread the better the investment. Therefore it goes without saying, the wider the spread the more costly the investment to you, the investor. Finding a company that offers you the tightest spreads allows you to recover your investment quicker, unfortunately the way the spread works you always start by making a loss and need to wait for prices to move outside the spread in order to move into gain. So if you compare companies, the spreads that they offer should be the first thing that you consider.

Margin requirements are another important factor to consider when doing a spread betting comparison. Margin is the amount of money you need in your trading account in order to make a trade. A low margin requirement means that you are only required to deposit a small portion of the value before you can open a trade. As discussed, margin requirement and tight spreads are clearly not the only thing that you should be looking at when you compare companies. Remember that spread betting allows the trader to take a geared position so you can always lose more than your initial deposit. It is therefore important to consider how to minimise your risk by taking advantage of the various tools many brokers make available to you. This is an important consideration when researching spread betting companies as many companies offer a vast array of education and learning tools to help their traders minimise risk - which you should be looking to take advantage of. See below a selection of tools which you should consider when you are deciding which spread betting company to open an account with.

Services and tools that spread trading companies offer to minimise risk include; new account offers, 24 hour trading hours, automatic stop losses, guaranteed stop losses and trailing stops are other points that you should compare when looking at spread betting companies. Many spread betting companies also offer a wide selection of learning tools which you must take advantage of. Nobody expects you to jump into spread betting without any helps so always open a FREE demonstration account. Demo accounts allow you to trade with virtual money and receive access to a range of markets. Demo accounts allow you to familiarise yourself with the different trading platforms on offer without risking your own funds. Becoming familiar with trading platforms is vital when you start to trade with a new spread betting company as you will minimise the risk of making elementary mistakes which can be easily avoided. Finally, it is always advisable to stay "in the know" and attend some FREE seminars that the superior spread betting companies have on offer, if you can't physically get to them then try to log-on to an online seminar that let you to keep your trading knowledge up to date in the comfort of your own home or office.

Betting-Bible is a spread betting comparison website that compares all the top spread betting and CFD companies such as IG Index, Capital Spread and InterTrader for the aspects you should be interested in such as who has the tightest margins and who has the best account opening offers

Source: EzineArticles
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