In the last two to three years, there has been a considerable increase in interest in retail trading. More and more new traders are opening accounts and actively trading financial markets because of the simplicity of use of certain new mobile platforms, such as Robinhood, and the reputation of the reddit wallstreetbets group. Another asset that has boosted the appeal of brokers and trading platforms is cryptocurrencies. UK based speculators tend to opt for spread betting providers due to the more attractive tax incentives. Traders and investors have a variety of spread betting brokers and platforms to pick from, but how do you choose the broker and platform that best meet your needs?
Regulation and Experience for Spread Betting Brokers
When it comes to Spread Betting brokers, mainly FCA-regulated brokers offer this service, with a few exceptions. FCA-regulated brokers keep client funds separate from the firm’s finances. If a broker falls insolvent, the FSCS is in place to provide protection for customers.
Consider also how long the broker has been in business and their reputation within the trading community.
Markets and Platforms
Think about the markets and symbols you’ll be trading. Not all brokers offer access to all markets. Typically, the biggest spread betting providers offer FX, Indices, Commodities, Stocks, Fixed Income and Crypto. Mid and smaller size firms may offer just some of these markets. Decide on what you are going to be trading before making a choice.
In terms of platforms, most brokers offer Metatrader 4 and Metatrader 5. The more established providers might have developed their own trading platforms. Consider whether you will be trading from your computer or a mobile device. Most platforms have both mobile and desktop versions, but double-checking might save you some time.
Funding Options
It’s time to decide how you will fund your account. Most brokers offer credit/debit card and bank wire transfer as funding options. Alternative deposit methods such as Paypal, Skrill or Neteller and cryptocurrency might be offered by just some of the spread betting brokers. Make sure you check the availability of these in case you want to use them for funding.
Finding a spread betting brokerage that meets your trading requirements can be difficult. As we’ve seen, there are several aspects to consider, ranging from regulation, reputation, markets, and platforms to funding options available. There are solutions available that can assist you in achieving this aim in a more efficient and timely manner.
