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How to Compare Spread Betting Platforms

A spread betting platform offers traders the ability to speculate on thousands of global financial markets. These include indices, shares, forex, commodities and bonds. The trader simply places a bet on whether they think the market will rise or fall, and the size of their bet dictates how much they can profit from a successful outcome.

When comparing spread betting platforms it is important to consider the legitimacy of the providers. This is achieved by checking if the company is FCA (Financial Conduct Authority) approved, and also by examining online reviews.

It is also worth ensuring that the provider has a good range of educational resources and trading guides for new traders, to help them get started in this type of trading. The more a trader understands the fundamentals of the markets, the better they can manage their risk and develop winning trading strategies.

Choosing the Right Account: Which Trading 212 Account Should You Open

The choice of markets available for spread betting is another key factor to consider when comparing brokers. Some providers offer a wide selection of markets, whilst others may only offer a handful of the most popular assets. It is generally a good idea to sign up with a provider that offers a large number of trading assets, as this will enable traders to speculate on both rises and falls in price.

Most spread betting platforms offer the option to trade with leverage, allowing traders to speculate on higher-value trades than they would be able to open without it. This feature can be beneficial for experienced traders, but it is important to note that leverage can also magnify losses. Therefore, it is always recommended that beginners use the lowest amount of leverage possible when opening a position.