Traders use spread betting brokers to speculate on price movements of shares, indices, commodities, currencies and cryptocurrencies without owning the underlying assets. It is promoted as a tax-free way to gain exposure to markets and can be used in both bull and bear markets. Choosing the right spread betting broker will depend on your trading style and budget. This comparison table aims to make it easier to find the right fit.
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The best spread betting brokers offer a wide range of trading assets and have robust trading platforms. They also offer low spreads and transparent trading costs, which can significantly reduce your overall cost of trading. The best spread betting brokers will provide a free demo account so you can try out your strategies without risking your own money. They will also have a clean and user-friendly layout that will allow you to access the features you need quickly.
Spread betting brokers earn their profits through the spread, which is the difference between an underlying asset’s buy (bid) and sell (ask) prices. This is different from traditional stockbrokers, which charge commission on each trade. However, spread betting is typically a more expensive form of trading than forex and should only be undertaken by traders with sufficient knowledge and experience. It’s important to remember that spread betting is not a reliable investment and you could lose more than your initial capital. For this reason, beginners should choose small bet sizes to minimize their potential losses.