The Ultimate Guide to
Choosing a Broker
For 50p Per Point
Not sure which broker is right for you?
Don’t worry - we’ve got you covered. In this guide, you’ll learn:
- Why scored high for 50p per point (Jump to section)
- Who is (and isn’t) suitable for (Jump to section)
- An in-depth feature comparison of the top #3 brokers (Jump to section)
- An overview on 50p per point (Jump to section)
What is the Best Trading Platform
for 50p Per Point?
The following brokers allow 50p per point on their platform:
Here are some areas where scored highly in:
- + years in business
- Offers + instruments
- A range of platform inc.
- 24/7 customer service
- Tight spreads from pips
- Used by 0+ traders
- Offers demo account
- 0 languages
- Leverage up to
offers one way to trade: . If you wanted to trade EURUSD through copy trading or other means, skip to part two.
The two most important categories in our rating system are the cost of trading and the broker’s trust score. To calculate a broker’s trust score, we take into account a range of factors, including their regulation history, years in business, liquidity provider etc.
have a trust score, which is . This is largely down to them being regulated by , segregating client funds, being established for over years, and much more. For comparison:
Trust Score comparsion
|Uses tier 1 banks|
|Segregates client funds|
The second thing we look for is the competitiveness of the spreads, and what fees they charge. We've compared these in detail in part three of this guide.
Who is (& Isn’t)
- Spread Betting
- CFD Trading
- Forex Trading
- Social Trading
To trade with , you'll need a minimum deposit of $. offers a range of different account types for different traders including a .
offer a wide range of instruments to trade including and many other asset classes. In the following section we’ve listed ’s spreads for a range of popular instruments. You can also see a more detailed breakdown of how ’s spreads compare in this review
Finally, isn't available in the following countries: . They do not offer islamic accounts either.
A Comparison of vs. vs.
Want to see how stacks up against and ? We've compared their spreads, features, and key information below.
Spread & fee comparsionThe spreads below are illustrative. For more accurate pricing information, click on the names of the brokers at the top of the table to open their websites in a new tab.
|FTSE 100 Spread|
Comparison of account & trading features
50p per Point: Why Micro Stakes Are Perfect for Spread Betting Beginners
Spread betting offers leveraged trading on financial markets such as forex, commodities, equities, and indices. It is very similar to CFDs trading and the differences are mainly technical. A strength of spread betting over CFDs trading is that spread betting gains are not subject to capital gains tax or stamp duty, though losses cannot be offset against gains for tax purposes as with CFDs trading.
How Does Spread Betting Work?
The term spread betting comes from the ‘spread’ between the buying and selling price of a financial instrument. This is basically the same as the buy and sell prices for currencies at a foreign exchange bureau and is how the broker makes their income.
When a spread betting trader thinks the price of a financial instrument, for example, the FTSE 100 index, will rise, they will place a ‘buy’ bet. If they think it will fall, they will place a ‘sell’ bet. These are also often respectively referred to as ‘going long’ or ‘going short’. The spread better then gets or loses money for every ‘point’ the price of the financial instrument rises or falls, depending upon whether it moves in or against the direction predicted. What a ‘point’ movement is varies between instruments. It could be a penny or cent change in price or it could be a fraction of a percent of an index.
The spread better also chooses the stake they wish to ‘bet’ per point movement. If that stake is, for example, £10, and the instrument moves 10 points in the predicted direction before the position is closed, the trader would get £100. If it were to move 5 points in the opposite direction to that predicted the trader would lose £50.
Micro Stakes and 50p per Point
While most brokers offer demo accounts where newcomers can practice trading without risking real money until they feel confident enough to do so, this approach misses out on the key psychological influence of having real money at stake. A significant element of trading is maintaining the right psychology and being able to stick to a strategy under potentially trying market conditions. Trading a demo account without risking real money, while useful, lacks the unique psychological influence of having actual money at stake.
This is where the micro stakes offered by some brokers are perfect. Being able to place a spread bet at 50p per point, with some brokers offering stakes as low as 10p per point, means beginners can gain experience trading real money without it costing them a great deal when they make mistakes. 50p per point trading means modest initial funding to a trading account can be spread across enough trades to spread risk thinly, build experience and give the trader more of a chance to learn how to improve their skills.
Learning the Ropes & Risk Management
Gaining the knowledge, psychological approach and experience to trade financial markets takes time and effort. Getting a handle on technical and fundamental analysis presents a large challenge for beginner traders.
However, while learning how to trade is certainly not easy, it is also something realistically achievable for most people. The reason why many beginner traders fail is that they do not take the right approach to risk management. They expose too much capital to individual trading positions and quickly burn through their account’s balance.
Traders need to understand that it is inevitable that they will be exposed to losing positions and this requires a strong approach to risk management and diversification of exposure.
It is easier than ever before to begin trading, and this means that more traders are signing up for trading accounts with smaller deposits. This is why the 50p per point, and even lower stakes, are useful for ensuring that initial deposits can go further while a trader learns the ropes.
Regulated Brokers Who Offer 50p per Point
Some of the top regulated brokers who offer a 50p per point option include City Index, who offer spreads from 0.1% and margins from 4%; and CMC Markets, who offer 50p per point on indices, commodities and FX, and as low as 10p per point on some US shares.
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