Financial spread betting can, in many ways, be more complex than actively buying and selling assets. You are essentially placing money on where you believe the markets will travel, and this is going to mean a lot of insight and, of course, a fair amount of risk.
While risk in trading and betting is unavoidable, there are a few things you can do to ensure that you’re not blindly throwing your money away. It is, for example, an excellent idea to research leading brokers and what they have to offer. You could look into a guide to the best spread betting platform for beginners over at AskTraders, for example.
If you really want to make your fortune from spread betting, you have to know what to look for in top brokers available online. Here are a few points you should consider.
Weigh up commission
It stands to reason that any professional spread betting broker will want a cut of your profits. It’s tempting to opt for the lowest bidder to begin with, but you’re going to need to drill deep into the commission terms to find out how much a broker will cost you in the long run. This means that you’re going to have to do a few calculations vis-à-vis the spread. Looking for low spreads means that you are effectively off-setting broker fees. This means crunching a few numbers between your offers and bids. Don’t worry – this really does get easier as it goes along.
Check out brokerage form
Just as you wouldn’t invest in a new car unless you had faith in the make, model and proprietor, you certainly shouldn’t invest time and money in a broker unless you’ve looked carefully at its history and experience. The fact is that any broker worth its salt and its commission will be open and honest about its previous claims to success. How long has it been in the spread betting game? Does it have strong reviews from other traders? Be prepared to compare and contrast.
In the modern age, a brokerage that doesn’t have a user-friendly app or platform is going to price itself out of the market. Always be sure to check that your prospective broker has tools and software you can comfortably use from day to day.
Perhaps, most importantly, you should check that any brokerage or spread betting broker you partner with is fully regulated. Illegal services will, of course, only ever do you harm – meaning that you must make sure that it has clear indications that it is operating in line with local fiscal laws.
Other points to consider
Of course, this is only scratching the surface. Further considerations such as customer care and asset availability are also extremely important. However, if you want to fund your luxury travel this way, the absolute best thing you can build up is trust. Make sure to consider your options carefully. There’s absolutely no reason why you should ever go with the first broker you find – be careful and you could line up a lucrative partnership for years to come.
Disclaimer: Investing money carries risk, do so at your own risk and we advise people to never invest more money than they can afford to lose and to seek professional advice before doing so.