Spread Betting Companies

Spread betting is a method used to make money depending on the direction a stock will move through a financial market, as opposed to purchasing actual stock. The idea is to purchase points of a spread on a particular stock at the upper end of the spread and sell said points when it reaches the lower end of the spread. Those who choose to spread bet utilize one or more of several different spread betting companies who specialize in this particular type of trading.

Some of the companies who provide spread betting services in the UK include, IGIndex, CMCMarkets, City Index, Capital Spreads, Fin spreads, Sporting Index and Saxon Spreads. Anyone outside of the United States can utilize these companies, along with a dozen or more other companies, to dabble in the financial market by spread betting. 

There are people in the world who should absolutely stay away from spread betting. Those looking for a get rich quick scheme, those who do not have disposable income to gamble and those who plan on using money dedicated to the mortgage or household bills should not consider spread betting as an alternative to gainful employment. As recent survey indicated, the majority of the currently active spread betters in the UK are financially stable, middle aged professional men with disposable incomes.

In general, spread betting companies will offer a guide to spread betting for beginners. This guide should educate the new financial investor regarding systems and software used to track the stock market and how much of an initial investment is required. The initial investment is generally calculated on the high end of the spread, multiplied by the number of points purchased and the amount of the commission charged by the spread betting company.

Spread betting is a profitable financial move for those who can understand the way stocks fluctuate and can bet with some risk of losing money. Most companies advise spread betters will profit on four to five bets out of ten purchased. To some this may sound like bad odds, but they are absorb able losses when one considers the four or five profitable bets will well compensate for the bets that lose money. Remembering to fully investigate the legitimacy of a spread betting company will go a ways toward mitigating any possible risks of investing.

Spread Betting Software

Spread betting is an intriguing way to get involved with buying and selling stocks without ever buying or selling a stock. Spread betting investors win when they bet correctly on whether the price of the underlying stock is lower than the bid or higher than the offer price. 

The process is very new for many people, even though it has been an established form of trading for decades. The most confusing point seems to be that the person does not own the underlying stock. The stock is only used as a reference point. In many ways, it may be easier to trade in this way. If you are someone who likes to look at trends and patterns this could be the way to trade for you.

People who use spread betting software give themselves an advantage over other players in the market. Spread betting is a complex technique involving complex strategies. Successful bettors juggle a great many factors in the process of choosing which stocks will rise and which will fall. Software helps to manage the information. 

Gather information from several sources to guide yourself in making bets. You will put yourself in a good position if you cull information from reputable firms such as igindex, cmcmarkets or saxo spreads. Look for established companies that have quick and easy access to the markets.

Financial companies, such as city index, capital spreads and finspreads provide services geared towards people interested in this special form of trading. Take advantage of all they have to offer in order to succeed with your individual spread betting goals. If you have a unique interest in sports betting, seek out firms, such as, sporting index, which will have information exclusive to sporting events. 

Get to know the leading financial companies. Seek out the ones that are able to provide technical analysis. Choose places that have intuitive software which will help you to make your bets in a timely and secure manner. 

Check any restrictions which may make it difficult for you to match their systems with your browser. This is particularly true if you like to use a less popular browser. Experienced traders know that it is important to be able to communicate with your chosen company to get information or to make a trade wherever you are. Mobile users should make sure that they have access which can be loaded onto devices such as the blackberry, iPhone or other such PDA devices. Investigate your options before plunging into spread betting. It is something that can be mastered if you put in some work. Reduce your risks by educating yourself with the online services available at the major companies.

FTSE Spread Betting: An Alternative to Traditional Investment

Spread betting allows investors to bet on the future direction of the FTSE without having to purchase shares in individual FTSE stocks or index funds. Instead of buying a FTSE 100 index contract at a predetermined, fixed price, the investor can decide how much to risk, just as he would if he were placing an opening bet in a game of poker. FTSE spread betting is a form of investment that comes very close in structure and execution to traditional gambling. For instance, an investor could "bet" 2 pounds per point that the FTSE would rise. If the FTSE rose 50 points after the investor placed the bet, then he would have "won" or gained 100 pounds, 2 pounds for each point of the FTSE's gain. If, on the other hand, the FTSE dropped 50 points immediately after the investor placed his bed, the investor would lose 100 pounds. Spread betting can be an effective way to make money in both up and down markets. For instance, investors who place bets on the direction of the FTSE can just as easily bet that the index will go down as that it will go up. Thus, the investor in the example above could also bet 2 pounds per point that the FTSE would drop. In that case, he would lose 100 pounds if the FTSE rose 50 points and gain 100 pounds if it went down 50 points.

The Advantages of Spread Betting:

FTSE spread betting offers many advantages over traditional trading. It is not for every investor, but those who do engage in it enjoy many rewards, financial and otherwise. Among the most obvious benefits of spread betting is the avoidance of capital gain tax, income tax, and stamp duty on investment profits. In addition, investors need not put up as much cash to place a spread bet as they do to purchase traditional market shares. Investors can engage in spread betting with very little capital. Some spread betting companies allow investors to place bets with as little as 100 pounds in their accounts and to bet as little as a one pence per point. Spread bets are commission free. This is because companies that offer spread betting build the costs associated with placing a bet into the bid-offer spread that they advertise to potential investors. Thus, while it would be wrong to say that investors are able to place spread bets at no cost, they are better able to gauge and absorb the costs because the costs are announced up front rather than taken piecemeal from investment accounts with the commission of each transaction. The upfront, one-time only assessment of investment fees allows the investor to perform what is known as a "phased exit" without incurring additional costs as a result. That is, a spread bettor can unwind the bet little by little in several transactions without being charged an extra commission fee with each sale. Spread betting also has psychological rewards. It enables investors to make their own decisions and take direct control of their investment activities. It also introduces to the usually stodgy activities of investment the sense of excitement and fun associated with gambling.

Disadvantages of Spread Betting:

However, spread betting truly is a form of gambling, and, as such, it can be a risky activity. Because a spread bet is a highly leveraged form of financial speculation, an investor stands to either realize great gains or incur great losses. While there is the potential to win big profits through this unique form of investment, there is the possibility of losing big as well. Also, because a spread bettor does not own shares in the underlying investment instrument, he also does not enjoy the benefits that come with ownership, such as receiving regular dividends and having a voice in the governance of the corporation or corporations in which shares are owned It is true that investors are not required to pay capital gains when they make substantial profits through spread bets. Conversely, though, when they lose big, they are precluded from claiming a capital loss that could potentially offset taxes assessed against gains from traditional investments at tax filing time. Spread betting is generally best viewed as a short-term investment strategy that allows individual investors to take advantage of short-term fluctuations in market indices. Thus, it is not an investment vehicle suited to "parking" one's money for an extended period of time. Spread betting requires vigilant monitoring and active involvement on the part of the investor.

How to Minimize the Risk of Loss When Engaging in FTSE Spread Betting

Fortunately, spread betting differs from traditional gambling in that it is possible for an investor to minimize his exposure to potential loss while still maximizing his potential gain. Losses can be limited most effectively by placing a stop-loss limit order, which allows an investor to determine the maximum amount of any loss he will incur before placing the bet. A savvy investor will structure the bet so that he automatically exits the bet once the underlying instrument that he is betting on reaches a predetermined price. Exiting the bet at this point limits the losses that the investor may incur if the index moves in the direction opposite to his expectations.

How to Choose a Spread Betting Company:

Spread betting originated in the United Kingdom in the mid 1970s and remains a popular form of financial investment and speculation in the British marketplace. Many firms offer spread betting services to investors. There are many factors to consider when choosing when deciding which spread betting company to trade with. One of factors to consider is the range of the bid-offer spread offered by different spread betting firms. The tighter the spread the better. Depending on how much money an investor has on hand and is willing to bet, the minimum amount needed to place a bet and the minimum price per point may be key to choosing the right spread betting firm. Some firms allow investors to open credit accounts and place bets on margin, while others do not. Newcomers to the field of spread betting may wish to open an account with a firm that offers a free demo or trial account with simulated trading systems. Such newcomers will also want to examine the training and educational materials that each company offers in order to guide new investors through the process of spread betting. A critically important consideration is the ease of using the software systems and trading platforms through which a spread betting firm provides investor information and through which investors execute trades and enter bets. A firm's trading platform should perform seamlessly and process orders efficiently and instantly, even during times of heavy traffic and hectic trading and betting activity. Some of the better known and regarded spread betting firms include, IGIndex, City Index, Finspreads, Capital Spreads, CMCMarkets, Sporting Index, and Saxo Spreads.

How do you make money in a down market?

During tough economic times, an investor must be wiser to be able to make money. Experienced traders have developed professional financial spread betting techniques to make money in any market - whether prices increase or decrease. 

The experienced investor knows that "prices are not set in stone"; there is usually a gap between the buy/sell price, which is called the "spread". Spread betting makes money from knowledge of how spreads change over time. 

Follow basic spread betting tips to ensure that you can profit in any market.

Spread betting allows traders to make money in any market

Calculate future spread movements, then place a short (sell) or long (buy) on stocks, commodities or indices; this is called spread betting. Volatile markets are constantly changing, spread betting makes money by anticipating the changes. Spread betting is especially attractive because experienced investors can make money in any market.

Spread Betting Tips

Develop a plan which includes how much money you will invest (only risk what you can lose), a strategy and the time-frame therefore. Knowledge is power. Be realistic about what you know and what you do not know. Understand the underlying differences between commodities, stock and indices. Test yourself on paper or with virtual accounts; ensure that your theories, models and systems are likely to bear fruit. Develop a winning strategy, improve it and modify it gradually to make it perfect.

Don't bite off more than you can chew.

It is difficult to track multiple company prices, around-the-world daily. Know the difference between "gambling" versus "trading". Are you simply wagering on "hunches" or making rational calculations? All traders must have a good computer, printer, Internet connection, cell phone, capital to lose and quick live reliable market information. The more advanced spread betting trader uses training, algorithms, computer calculations and special software programs for assistance. Many spread betting companies can assist with these helpful tools, acting as a guide for better options. Trading is about managing risk and reward, manage your risk through financial instruments like the "Stop Loss" or "Limit Order" selections. Learn from your mistakes, improve your spread betting strategy.

Compare the myriad of spread betting options before you.

Some companies are proven experts like igindex. Or turn to cmcmarkets, which is a global leader in spread betting on shares, indices, commodities, treasuries and foreign exchange. A more affordable option is city index. More trading options are available with capital spreads. Access the financial markets to your fingertips with finspreads. Sporting fans can use the sporting index. Different experience levels are served by saxo spreads.

Spread Betting Account

A spread betting account allows investors to bet on the outcome of a particular financial product or market. Investors bet on the “spread,” the range of possible outcomes rather than simply a win-lose outcome. A bet is placed on how one thinks the financial product or market will change in value over a given time period. You win or lose depending on how accurately you predict the movement in price.

Investors do not actually buy any stocks or other financial products in financial spread betting. A spread betting account is a type of financial derivative trading and not an actual investment in any product or market. The money is placed in a betting system rather than in companies.

High risk

Spread betting is quite risky so you should only use money that you can afford to lose for such investments. Most people use specific systems to guide them in knowing when and where to place bets. There are a number of software systems that can help investors make crucial decisions based on real-time or near real-time information. The more important spread betting software solutions include IgIndex, CmcMarkets, City index, Capital spreads, Finspreads, Sporting index, and Saxo Spreads.

Choosing the right solution

There are a number of factors to consider in choosing the right brand for your investment purposes. Some solutions provide trading platforms together with analytical tools, while others only provide the latter. IgIndex comes with guides and online seminars to help users learn the game of spread betting, and provides quotes on thousands of possible financial investments. CmcMarkets is another popular award-winning brand that allows you to trade on global markets. A comprehensive training programme is included along with around the clock customer service and support.

Placing bets

There are two types of bets that you can place in the financial markets. The long spread bet is used when you think that a price will rise in value. A short trade is used when you think that the price will fall. You can, for example, place a minimum bet of £1 per point on any investment. So, if you bet long you will make £1 for every point increase in the share price. If the price falls instead then you lose £1 per point. If the market is going against you can close your position to cut your losses or to reap your gains. 

The decision on whether to bet long or short depends on a number of factors related to the financial product or market. For example, if a company is releases a report showing worse than expected performance, the shares may drop in value. The investor must know how to carefully analyse all possible variables in price fluctuations.

How do you create a "Futures Spread"?

Futures spread betting is a natural extension of futures trading, whereby an investor purchases one or more offsetting futures contracts. This can be accomplished by buying a variety of different futures contracts for commodities or securities that have some sort of relationship to one another. A combination of owning a futures contract for long (buy) and short (sell) - for a financial investment that is related - can create an intermarket, intramarket or inter-exchange spread. 

A "Futures Spread" is created by owning multiple related offsetting financial instruments.

Certain futures financial instruments naturally go together and can create a spread when owned by the same investing party. As futures near maturity, the buy and sell contract prices may both change, but if the spread changes at a different rate, the professional trader can turn a profit. Spreads usually trend in one direction. Expert traders are able to use their knowledge as a guide, recognizing how seasonal factors can affect spreads.

How do you profit from Futures Spread Trading?

Large companies sometimes use futures contracts to hedge a position in order to lock in a guaranteed price, for conservative trading protection in case circumstances change dramatically. Futures spreads tend to be a more conservative form of trading since many financial investments allow for a more controlled profit base. Complicated software systems can help professional traders measure price changes, velocity and acceleration of financial investments over time, permitting rapid calculation of profit. Futures spread trading permits experienced traders the opportunity to make money in volatile markets that go up or down rapidly. There are fewer futures terms to learn. Spreads are more precise than other comparable trading vehicles. It is easier for busy traders to track trends by simply by using end-of-day data for measuring spreads.

There are many futures spread trading firms to choose from. For example, igindex has been in the business for more than three decades. Choose a global leader, like cmcmarkets, for more broad trading options. There is a worldwide access to prices with city index. Experienced traders have more selections with capital spreads. More mobile options are available with finspreads. Fans of sporting events can choose sporting index. If you want more tools for trading, then check out saxo spreads.

How to Choose Forex Spread Betting Companies

Why should you consider forex spread betting?

Forex trading is quickly becoming a very good way to make high returns with small investments. However, one of the major drawbacks of trading in forex is that there are hidden charges, especially rollover interest rates that your broker may ignore tell you about. 

Spread betting is a great trading alternative to forex trading. Every forex quote has a “spread”. That is the difference between the price you buy the currency or the sell price. 

If you wish to trade the US dollar, you get a quote of 1.3025/1.3030. The spread is the difference between 1.3030 and 1.3025 that is 5 points. You can then bet on what direction the market is moving.

There are many advantages in trading in forex spreads. These include:

1. You have the ability to go long or short, 

2. Leverage enables you to use relatively lower deposits, 

3. Immediate dealing at fair prices, 

4. Very competitive spreads, and 

5. Tax free profits

If you know how to trade forex, then forex spread betting should be more profitable. The issue is figuring out which companies to use.

What are the Qualities of Good Spread Betting Companies?

Since there are many companies dealing in spread betting, you should pick one based on the benefits you accrue from them. Some of the things that one can consider include ease of using their platforms, tight spreads, customer care and knowledge of the business. 

One of the considerations is tight spreads, software and systems. An example is igindex that boasts of spreads as low as one pip as well as a browser-based platform known as PureDeal Technology. Capital Spreads also offers very tight spreads. 

A good trading guide is essential especially if you are new in trading these types of markets. That is how finspreads caught my eye. Customer care and support is important when it comes to choosing the best company. Companies such as city index and sporting index laid claim to having the best customer service.

Even with all the benefits of trading with the financial institutions above, age or experience in this market was my biggest consideration. That is why I was attracted to saxo spreads and cmcmarkets. These have been there for a very long time and I felt that my fund were in safer hands. 

Because you will be investing a fair amount of money, it is not easy to decide on the company to use. There is nothing wrong with seeking other trader’s opinions or doing further research. Trading in spreads is risky and the prudent thing to do is choose a good forex spread betting broker.

Financial Spread Trading

Financial spread trading embraces all the excitement of uncertainty with the thrill of finely honed market acumen. By speculating on the likely upward or downward performance of a commodity, index, currency or share, you will profit depending on how accurate your prediction is. 

There are three principal types of spreads based on time; daily, rolling, and contract month. A daily bet is simple, and is based on a particular day’s performance. A rolling bet can be extended from day to day, while a contract month spread trade will occur 3 months from the date it is initiated. 

The global nature of the market rewards those investors who are able to visualize the incredibly complex interactions of any given commercial ecosystem. Essentially, the investor who has a comprehensive view of their particular market or commodity will be able to predict the movements of that entity with remarkable accuracy, and be rewarded handsomely with tax free profit for his or her effort.

How to Make Wise Investments

Although there is no particular official system to financial spread trading, establishing a relationship with a brokerage firm is highly recommended, simply because one can pool one’s knowledge with top industry professionals. One must invest in the companies that one has a special knowledge of, and predict their performance based on solid factors and one’s experience of those particular enterprises. There are, however, several websites and brokers which specialize in placing these speculative trades, including Igindex, CMCMarkets, City index, Capital spreads, Finspreads, the Sporting Index, and Saxo spreads. 

Some of these firms, such as Finspreads, offer education courses for their clientele. Other firms, like CMCMarkets, actively recruit established and potential brokers to keep their knowledge of the market sharp and competitive. Many of these companies utilize internet based content management software and systems to keep their data on global markets as up to date as possible. 

Regardless of the particular advantages of each firm, all of the listed firms excel in helping one locate the best opportunities for trade, and can guide an investor in the proper direction when placing an initial investment. The experienced brokers who staff these firms have worked in the market long enough to have witnessed every contingency, and will be able to offer highly pertinent advice.

What is Spread Betting?

Spread betting is a new form of speculation which involves placing a bet on the price movements of certain financial securities, such as stocks, bonds, and commodities. Instead of buying or selling the stocks or commodities, investors simply bet against these companies on whether the closing price of the underlying security will be lower or higher than a specific quoted price that the company determines. Financial spread betting is simply speculation on the price fluctuations of investment instruments. The concept is simple, and just like trading stocks, you buy and sell based on predictions about the movements the security will make. There are many of spread betting systems and companies across the globe, and there are many websites that not only take spread bets, they also provide their members with software to analyze securities and place bets quickly and easily.

An Example of Spread Betting

If a spread betting company quotes a bid of $400 and an offer of $404 for stock BAC. If the user believes that the price for BAC will be lower than $400, they can bet any amount per tick that BAC stock will go below $400. Say the user "bets" $5 for every tick that BAC goes below $400. If the stock then moves below $400, the bet is a winning bet and the company will owe the user $5 for every tick lower that the BAC stock moved under $400. If the BAC stock moves over $400, the user will owe the site $5 for every tick higher that the BAC stock moves.

Major Spread Betting Companies

Spread betting has become a popular way to avoid the tax responsibilities that come with owning and selling real stocks on the stock exchanges. Each different company has a guide that will explain their policies and procedures related to taking and paying out bets. Here are a few of the more popular spread betting companies. 

The longest-running spread betting company is igindex. They are based out of the UK and provide users with easy access. Another great company is saxo spreads. They are an arm of Saxo Bank, which is a leader in global financial markets. Offering quick and easy access to the world's markets through online and mobile trading platforms, finspreads is a leading financial spread betting firm based in the UK. 

With a capital spreads account, traders gain access to various financial products. The site also accepts several major currencies. They pride themselves on creating amazing value for money and unmatched customer service to clients, capital spreads is one of the UK's leading spread betting companies. Having captured 60% of the UK's sports spread betting market, sporting index is the world leader in its field. City Index offers around-the-clock access to equity, index, currency and commodity markets all over the world through our innovative trading platform. Another global leader in online CFD and spread betting services is cmcmarkets.

Understanding Financial Planning

The definition of financial planning is pretty simple to understand as it mainly 

explains it to be a definite process wherein people settle on target specific future 

financial objectives after a thorough assessment of their resources and assets so as 

to keep the targets realistic. Financial planning involves estimating one’s future 

financial needs and then making provisions or setting plans in progress in order to 

achieve these set monetary goals. Various factors such as estimating one’s insurance 

needs, managing one’s investments and managing daily cash flows are a part and 

parcel of this activity. Financial planning also involves numerous elements, such as 

asset allocation, risk management, retirement planning, tax planning and estate 

planning. Financial planning in essence is nothing but strategy generation to reach 

at a tailor-made solution for all your future financial needs and concerns with the 

additional benefit of future financial safety.

For people who want to get the most benefits from every dollar they earn, financial 

planning is a useful tool to achieve that objective. Careful financial planning can 

help individuals as well as couples to set themselves realistic priorities with 

regards to long-term financial goals and then get to work with the objective of 

achieving them. Financial planning also helps set aside some funds for contingencies 

and emergencies such as any income loss, injuries or illnesses.

Though financial planning is a structured activity, no two individuals look at it 

the same way, simply because most individuals have different objectives and 

different ideas for achieving them. While some individuals think of financial 

planning as way to selecting the right investments for post retirement security, 

others look at it as a means to finding investments that will help them generate 

enough savings to meet a future expense such as a child’s higher education expenses, 

etc.

Though financial planning as a definition may seem like a fairly easy task, it is 

not a job for everyone, especially people who lack financial market-related 

knowledge. Financial planning is also fairly complex as it is multi-disciplinary and 

hence is not a task for any layman. The best way to go about financial planning is 

to hire the services of a professional financial advisor or a financial planner. 

Financial planners are experts in their fields and they offer the right financial 

guidance and also give good advice when you are stuck on some financial planning 

issues. Also, with the advice of a financial planner, your financial planning task 

becomes fairly simple and there is no need to devote long hours from your already 

hectic lives, to study the market trends and follow new market instruments. A 

financial planner is a skilled expert who looks not only at all your future 

financial needs and objectives but also your current financial situation before 

giving out any advice. The advice or financial plan thus reached is best suited for 

the client’s present as well as future needs.

A detailed financial plan may include important aspects such as your investments 

portfolio, your retirement plan contributions, current living expenses budgeting and 

projected growth in savings. The problem with most people is that they delay their 

financial planning for too long, as they are busy juggling their current financial 

situations. This delay in preparing for the future is often a big blunder as 

irrespective of a person’s present income, financial planning can help in achieving 

future goals successfully. With the assistance of a financial planner you can get a 

reasonable financial plan that will require a little discipline but will help you 

with future success. As financial plans are not rigid or written in stone, a 

financial planner can easily accommodate any changes in your circumstances, such as 

the birth of child, and help you change your financial plan accordingly.