Archive for the ‘Spread Betting’ Category

ETX Capital MT4 Platform

ETX Capital MT4 Platform Review

ETX Capital offer three different platforms for traders, and the MetaTrader 4 is one of them. MT4 is one of the leading online trading platforms and is a popular choice for online forex trading. When ETX Capital acquired Alpari in March 2015, they sought to provide a familiar trading environment for Alpari clients and that is why they installed the same MT4 servers. With the ETX Capital MT4 platform you can trade a wide variety financial markets including the indices, commodities, equities and currency markets.

Is ETX Capital MT4 Platform Right For You.

The platform is popular choice for:

  • Forex, Spread betting & CFD traders
  • Traders who want to use automated Expert Advisors (EAs)
  • Trading micro lots
  • Traders who want to use hedging
  • leveraged trading
  • Visit the ETX Capital MT4 page and find our more.

    Trading

    For traders who prefer automated trading, this is the platform that provides it. ETX Capital has an AutoTrader platform that facilitates the use of automated Expert Advisors (EAs). Traders using EAs can set parameters for their trades and then wait for the automated responses. The advantage that traders get with this option is that one does not have to be in front of a computer to open or close trades. With MT4 automated trades, ETX Capital is responsible for the hosting while the traders provide the Expert Advisors.

    On The MT4 trading platform, ETX Capital has made sure that traders can take advantage of the all the opportunities available. The one click trading feature is what makes this possible.

    Another trading advantage that the ETX Capital MT4 platform offers is the ability to support multiple charts. Information is very crucial when trading and that is what charts provide. With multiple ones, traders get real-time data that they can use for decision making. The environment in different markets keeps changing, and it is essential to monitor them when trading. Real-time data shows all the fluctuations that may be taking place.

    The ETX Capital MT4 platform has a watch list feature. As the name suggests, this lists enables a trader to keep an eye on specific markets. With the drop and drag function on the platform, traders can add particular markets to the list.

    Trading on the MT4 platform offers traders favourable leverage rates of up to 400:1. Such margins increase the potential returns that a trader can get. Traders can also use micro lots, meaning that it is possible to trade smaller.

    MT4 on Mobile

    ETX Capital has a mobile app for the MT4 platform. Even with automated trading, traders still appreciate mobile apps. Traders can download the app on Android devices and iPhones and iPads from Google Play Store and iTunes. A trader can also get the app on Windows Mobile. Mobile apps are available in multiple languages.

    Visuals and Speeds

    Like other ETX Capital platforms, the MT4 is black in colour. Its tools are in red and blue buttons, so they are pretty easy to see against the black background. The layout does not have any complexities, making trading uncomplicated.

    When it comes to speed, ETX Capital has fast platforms. Traders can log into their accounts without experiencing lags.

    Signing Up

    The sign-up process on the MT4 platform is straightforward. ETX Capital provides a secure page where traders submit their details for sign up. There is also a registration bonus on sign up, and a trader has to tick a box to accept. The broker also offers a first deposit bonus that is dependent on several terms and conditions.

    The MT4 platform may seem a bit complex for some people, but ETX Capital offers educational resources that a trader can use. To find out more about what this top brokerage offers read our ETX Capital review.

    EXT Capital Trading Apps Review (2016)

    ETX Capital Mobile Trading Apps

    ETX Capital is a popular choice for traders looking to open a trading account with a trusted and reputable broker. The broker is a member of the London Stock Exchange and has authorisation from the Financial Conduct Authority in the UK. Traders get access to numerous FX pairs and derivatives from different markets. It has three trading platforms that suit different needs which are the ETX Trader pro, ETX MT4 and ETX Binary platforms. Mobile devices and computers have changed trading practices in modern days. Traders now look at how convenient it is to trade with a certain broker before making a decision. Offering a mobile trading platform is one of these conveniences. ETX Capital is fulfilling this need with its various mobile apps across different platforms such as Android and iOS.

    ETX Capital Mobile Trading

    The mobile trading platform that ETX Capital provides for traders allows access to an account with the same login details as on a desktop. Traders can carry out a lot of trading activities on the mobile platform. If you want to deposit or withdraw from the account, the mobile platform allows it. Transferring money in and out becomes less of a hassle. The app provides secure encryption, so traders don’t have to worry about the security of transactions. Traders can also open and close trades on their mobile devices. It means that you can trade from anywhere as long as you have a mobile device close by.

    The popularity of ETX Capital among traders extends to different countries. To cater to these various traders, the ETX mobile trading app has multiple language features. Traders can use the app in Chinese, Portuguese, Hungarian, Turkish, Greek, Irish, and French, just to mention a few. With the mobile app, a trader can set alerts for price levels. It also provides access to monitoring tools that make it possible to keep up with the markets.

    Some ETX Capital services are not available when using the mobile trading platform, though. For instance, if a trader wants to get education resources, they would have to log into the PC version. The same goes for checking all the assets and derivatives that ETX offers for trading.

    Compatible Devices

    To ensure that a majority of traders get the app on their devices, ETX Capital has different versions. Traders can get the app on Android devices (smartphones and tablets), iPad and iPhone. These apps can be downloaded from Google Play Store and iTunes.

    The look of the ETX Capital mobile app simplifies trading significantly. Traders using the app can switch from one trading platform to another. On Android and IOS, the app offers clear icons that users have to tap to operate.

    GO for iPad

    ETX Capital has a new iPad app called GO which is “developed by traders for traders.” With this particular app, traders can customise the screen layout to make it easier to monitor trades. Users can trade directly from the chart, and there is also a drop and drag feature.

    A lot of people use their mobile devices (smartphones and tablets) for a lot of things. Mobile trading makes it possible to play the market without being tied down to a desktop computer. With ETX Capital mobile apps, trading is on the go. In cases of problems with the mobile trading apps, the broker has customer care services that a trader can turn to. There is also demo account that a trader can start with before registering for a real account.

    If you are interested in finding out more about this broker, you can read our ETX Capital review.

    ETX Capital Demo Account Review (Updated 2016)

    ETX Capital Demo Account Sign Up Screen

    In this ETX Capital demo account review we uncover everything you need to know about the ETX platform from the sign up process to placing your first trade.

    Our initial thoughts on the ETX Capital demo account is.

    • Quick and simple sign up
    • Easy to use modern platform
    • Simple to customise to suit your own preferences
    • Instantly access relevant charting information

    To start practicing and trading with the ETX Capital demo account simply click here: ETX Capital demo account. Alternatively if you want to know more about ETX Capital, take a look at our full review of ETX Capital which also includes a video overview of the broker.

    Overview of the ETX Capital Demo Account

    It is popular option for traders to utilise a demonstration account before committing to a specific platform. ETX Capital offers this opportunity; a great choice for those who may be unfamiliar with how their platform functions.

    Sign Up
    The registration process is simple and some basic information is first required. These fields must be addressed:

  • First and last name.
  • Valid phone number (for future contact).
  • Functional email address.
  • Once these details are provided, the applicant will be immediately taken to the main demonstration account page. Please note that Adobe Flash Player needs to be installed in order to display all information correctly. Important to note that the demo account works on both Mac and PC.

    Page Layout

    One of the advantages of the platform offered by ETX Capital is that it is extremely intuitive and clean. From the default layout here are several features worth mentioning here. First, a drop-down menu of the most popular assets are listed on the left-hand side of the main page. These include:

    Commodities
    Indices
    Equities
    Forex positions
    Bonds and interest rates

    ETX Capital Demo Account - Popular Markets

    There is also a watch list which enables the trader to follow specific instruments the trader is currently involved in or potentially would like to trade. Cash balances, open/closed positions, reserved margins and available trading funds are all displayed along the top of this screen as well.

    The bottom portion of the main screen displays all currently open positions in a top-down fashion. Alerts, balances, transactions, trade history and open positions are clearly illustrated here and with the click of a button, each can be examined in more detail. These can be opened up in a separate window for streamlined interfacing.

    Platforms Available

    We should note here that with a demonstration account, the client only has access to the TraderPro software offered by ETX Capital. This is a proprietary framework which is preferred by many individuals. However, there is also the possibility of upgrading to the popular Meta Trader 4 system or a binary options alternative. Both of these will require the deposit of funds. Although the amount of money deposited will vary, the trader still has the advantage of enjoying a first-time bonus as well as a registration bonus (explained within the website).

    Assets and Allotted Demonstration Funds

    When a demonstration account is first opened with ETX Capital, the trader will be provided with €10,000 euros (or the monetary equivalent) of funds. These can then be used to immediately open positions within the aforementioned sectors. There are numerous unique assets to choose from. While these can be broken down into areas such as commodities, indices and equities, a drop-down menu within each category provides further options. Examples here can include major or minor European indices, country-specific equities, commodities such as metals or energy, short-term bond interest rates and CFD positions. With any of these options, the bid and the ask prices are displayed in real time. There is also a search bar which enables the user to quickly pull up a specific asset or trading position.

    Funds can always be added to this demonstration account and once the initially allotted funds have been exhausted, it is necessary for the client to upgrade to a live position in order to continue trading.

    Open a demo account with ETX Capital today.

    The Top 5 Spread Betting Apps for Trading on the Go

    Spread betting is quickly gaining popularity in the financial world. With the many spread betting accounts offering these services, the market is quite competitive. Due to this competition, many spread betting brokers have developed mobile trading platforms. Here are a few pointers on how to download the best apps for online spread betting.
    First, ensure you choose a good broker to trade with. Always go with a broker that is regulated by a trusted authority like the Financial Conduct Authority in the UK.
    Second, choose the app that suits your needs. to effectively know which to go for, you could do a test of each platform before downloading the app of your choice. What is important is your comfort when using the account.

    In addition to having some of the best apps on the market, the brokers listed below are also regulated and highly rated spread betting firms around today.

    best spread betting apps

    Top 5 Spread Betting Apps

    1. ETX Capital

    The company has a substantial amount of experience in the market as it was founded in 2003. The company is passionate and serious with its clients as shown by the heavy investment in the trading platform and infrastructure.
    The key features of this platform are the tight spreads they offer. A great welcome bonus of £100 for a deposit less than £1,000 and a 10% top up bonus up to £10,000 for larger deposits. A commission rebate scheme capped at £1,000 per month is also a key feature of the platform.
    ETX Capital has a wide range of markets with around 3000 items to trade. There are also additional products which you can access on request. There are also a lot of bonuses on offer.
    ETX Capital is one of the best trading platforms in the UK and it also powers most of the biggest spread betting brands. It has mobile apps for Windows, Blackberry, Apple and Android devices.

    2. Spread Co

    Also one of the reputable spread betting platforms, Spread Co has a great platform with native apps that make it easy to use. You can easily navigate the platform with great risk management features such as stop loss/limit order functions. If you are a high volume trader, you will fall in love with their low margins, low financing costs, tight spreads and great useablitiy. The platform has a professional charting with powerful tools and what is more; the platform is quite innovative therefore very intriguing.
    The platform has apps for Android, iPad and iPhone.

    3. Core Spreads
    Core Spreads is yet another top online spread betting platform. It has tight, fixed spreads so that you can trade for less. The platform is quite straight forward; you will feel quite at home trading on it.Being quite a straight forward platform, there is no clutter, just what is essential for you to use. On top of providing one of the most user friendly platforms available today, they are regulated by the Financial Conduct Authority in the UK.

    4. Easy Forex

    Designed by an award-winning designer, Easy Forex is reputable for its intuitiveness at all levels. A unique feature of the platform is its ‘freeze’ functionality which enables you to freeze acceptance rates for up to 3 seconds. The functionality serves to reduce the spread and enable the trader to enter and exit superior trades at the point they accept.
    You can ably be long and short at the same time while spread betting. Registration on the platform is easy and quick thereby saving on time. On registration, you obtain access to the trading platform which has numerous benefits.
    Some of the benefits of Easy Forex is that you will have accessibility to over 300 markets globally from which you can do your spread betting. The more the markets, the more the options you have. The platform also provides fixed spreads and the implication of this is that the risk decreases tremendously thus you can invest boldly.
    The trading platforms it runs on are; Web Trading, Trade Desk, MetaTrader4 and iPhone apps. The platform is also compatible with Windows OS making it accessible to users of Microsoft apps. The platform languages are multilingual therefore you can trade in a language you are most comfortable in. the platform has trade alerts which give you a sneak peak of the current trades that you might be interested in. In case, you do not have sufficient time to carry out all the manual procedures involved with spread betting, the platform’s automated trading will come in handy.

    5. IG

    Founded in 1974, the platform is a forerunner in product development offering its clients some of the most innovative tools and markets. IG has an estimated value of £3bn and it is a listed company on the London Stock Exchange.
    The key features are; large balance sheets, an excellent platform, great data and sentiment tools and they also have a provision for use of stock as a collateral. Their spread width is 0.8 points for trades transacted in Euros.

    Pure Deal, the platform it runs on, is secure and fast. The platform is web based and thus, you are not required to download it. It is quite an easy to use and a straight-forward platform. If you are an experienced trader you will fall in love with this platforms customisable features, providing options for the addition of trading extras like DMA prices, multiple deal tickets and buffer limits.
    IG has mobile apps for Windows, Blackberry, Apple and Android devices

    image credit:Eduardo García Cruz

    Spread Betting vs Share Dealing: What’s the Difference?

    spread betting vs share dealing

    Differences between spread betting vs share dealing and the pros and cons of each.

    The most significant difference between them is that in share trading you will actually buy and own the asset, share or stock that you are trading in. With share trading you have the ability to then sell them for a profit or loss at a later date depending on the movement in value. With financial spread betting, you never actually own the share or commodity in any way, nor have any right to ownership over it. It is a form of market speculation, where the trader will speculate on the movement of the asset, as to whether the value will increase or decrease.

    What is traditional share trading?

    As previously discussed, in traditional stock trading, the trader actually owns the stock. For example, if a new company was formed, for example Company XY, then the trader could invest in the company by buying shares. The shares in the company are purchased, meaning that you hold stock and therefore partial ownership in that company.

    When dealing in shares, you will buy the stock and wait for an increase in share value, when it reaches a higher value and you wish to then cash in on the profit, you will then sell at a higher rate than you bought the stock. This is how the profit is acquired. Consequently if the value of the stock decreased in value you would make a loss.

    When you buy shares, if buying in the UK, you usually are required to pay a tax or duty of 0.5% on any transaction related to holding shares. This tax applies to buying shares whether they are done electronically or not. When you sell on shares or make a profit from them, for example dividends, you are also required to pay Capital Gains tax.

    The pros of traditional share trading
    -You own the share or commodity.
    -It is easier to assess the market, and to gauge when to sell you shares to gain profit.
    -In general, share trading is seen as a long term investment strategy.

    The cons of share trading
    -You have to pay both Capital Gains tax and Stamp Duty Reserve Tax on any shares transactions / deals.
    -Shares rise and fall in value and it can take a long time to make a profit, so are not always suitable as a short term investment strategy.
    -There is the risk of potentially losing your money should the company fail. Any investment you made in the company would be lost.

    If you would like a list of top share trading companies, read our comparison of share trading brokers.

    What is spread betting?

    The first thing to note, unlike traditional share dealing, as detailed above you do not own the actual share, nor have any right to ownership on the commodity being dealt in. This means you do not own any stock in the company you are spread betting on.

    The 4 Steps to spread betting

  • 1. Find a reputable and regulated spread betting broker like ETX Capital.
  • 2. Select the financial instrument you wish to spread bet on, for example Facebook stock.
  • 3. Look up the price of Facebook stock with ETX Capital. They will provide a buy price and sell price.
  • 4. Decide which way you think the Facebook will go, if up in value buy if down in value sell.
  • 5. Decide your stake, how much money you want to put down. The stake relates to the amount of money you could potentially gain or lose per point of movement when compared to the value of the share.
  • The pros of spread betting
    -If you implement a guaranteed stop loss / limit order you know how much your profit or loss could be, if you make a profit then there is no UK tax.
    -You can close the trade at any time, without being dependent on if you are making a profit or a loss.
    -You can trade on margin which means you only have to pay a fraction of the actual cost of trades.

    The cons of spread betting
    -You have to pay an initial deposit to cover any potential losses.
    -If you predict the rise or fall incorrectly, you losses can exceed you deposits.
    -Spread betting is not suitable for long term investment

    The following are top rated and regulated brokers that offer spread betting: ETX Capital , Core Spreads and Spread Co.

    If you would like to see our full list of the top spread betting providers, read our comparison of regulated spread betting brokers here.

    As with any investment, your capital is at risk and there is the possibility you could lose money.

    image credit:Rafael Matsunaga

    Spread Betting vs Forex Trading: What’s the Difference?

    spread betting vs forex

    What is the difference between spread betting and forex trading?

    Foreign exchange is a vital part of today’s interconnected global economy. Companies require foreign exchange for paying for goods in another currency and dealing with international employees. People require it whenever they are travelling abroad, paying for their child’s education or paying mortgage for real estate overseas. This guide is designed to help investors and individuals understand the basic differences between spread betting and forex.

    Understanding Forex Trading

    Traditional forex trading in simple terms is selling a particular currency and getting another currency in exchange, as per the existing exchange rate between those two currencies. For example, a trader will sell GBP£ 100 to get approximately US$ 140 at a rate of 1GBP=1.4USD. If the price of the held currency rises, in this case USD, the trader can make a profit by selling the USD. The difference between the buying and selling rate is the trader’s profit. There is no universal exchange, so most of the transactions are made over the counter, where individual buy and sell transactions are matched. Once a deal is finalised, known as a spot deal, there is an exchange of the currencies between the two parties.

    Understanding Financial Spread Betting

    Spread betting is different from the traditional forex trading in various ways. In spread betting, there is no actual exchange of the currency or purchase of the financial instrument that is being traded. Spread betting involves taking a position based on anticipating whether the price of a financial instrument will increase or decrease in the future. This form of betting means an investor will win or lose money based on the marginal variation of a particular outcome and the expected value spread quoted by the spread betting brokerage. Besides foreign exchange, spread betting can be conducted on a wide range of financial instruments, including interest rates, individual share prices, indices, price of commodities etc. Depending on how a trader expects the market to move, he/she can either put in a ‘Long Buy’ (anticipating a rise in price) or a ‘Short Sell’ (anticipating a fall in price). Spread betting is further illustrated by these examples:

    Case 1: The trader expects the price of the financial product to rise. The trader assumes that the GBP to USD exchange rate will increase, assuming the exchange rate is 1GBP=1.14USD. The trader places a bet of £20 for every 0.1-point rise in the exchange rate. (long position). With this, there will be two possible outcomes:

    • If the exchange rate increases from $1.14 to 1.70 (a 0.56-point rise), then the trader’s profit will be 56 X 20, which is £1120.
    • If the exchange rate fell from $1.14 to 1.02 (a 0.12-point fall), then the trader’s loss would be 12 X 20, which is £240.

    Case 2: The trader expects the price of the financial product to fall. The trader assumes that the GBP to USD exchange rate will decrease, assuming the exchange rate is 1GBP=1.14USD. The trader places a bet for £20 for every 0.1-point fall in the exchange rate. (short position). There will be two possible outcomes:

    • If the exchange rate increases from $1.14 to 1.70 (a 0.56-point rise), then the trader’s loss would be 56 X 20, which is £1120.
    • If the exchange rate fell from $1.14 to 1.02 (a 0.12-point fall), then the trader’s profit would be 12 X 20, which is £240.

    The profit or the loss with respect to spread betting depends on two things.

    • The stake size, which is the amount an investor bets for every point increase.
    • The points drop or gain of the underlying financial product, which the investor has put his/her money in.

    What Are The Pros And Cons Of Both Investments?

    Investors should be aware of the pros and cons of both investments before making any financial decisions:

    • The biggest advantage of spread betting is that none of the profits are taxed. Forex trading is not tax-free, as you have to pay capital gains tax, as well as stamp duty.
    • In spread betting, you need to put in only a fraction of the money you trade. This is known as margin trading. This means traders can trade in high value since they have to put down only a fraction of this price as the initial stake, if the price moves in the way desired by the trader the profit can be much more that in forex trading. However, the inverse is also true. The loss can be significantly higher as opposed to forex trading, if the movement in price is opposite to what is desired by the traders. In traditional forex trading, the trader has to put down the entire amount of the trade, so the profit or loss is limited to the amount the trader has put down in the trade
    • Forex trading being a long established industry is regulated to a higher extent, as compared to spread betting. Traditional forex trading is provided by more established brokerages or financial institutions such as banks that provide accounts in multiple currencies. Because of this it is always best practice when choosing a spread betting provider to always consider going with a regulated brokerage.It is important to note that because spread betting involves high leverage the potential of losses from spread betting can be enlarged.

    Best Forex And Spread Betting Providers

    Traders and individuals that want to trade forex, binary options and spread betting will benefit from working with a long established and trusted broker like ETX Capital. If you would like more information on ETX Capital, read our full review of ETX Capital here.

    If you would like to see the best spread brokers available, read our comparison of spread betting brokers.

    Other key firms dealing with binary options, spread betting and forex include ZuluTrade, AxiTrader and Spread Co.

    Traders and individuals should keep in mind that their capital is at risk when they make any investments.

    image credit:Ken Teegardin

    Spread Betting vs CFD Trading: What’s the Difference?

    spread betting vs cfd trading

    Spread Betting Or CFD Trading – Which Is Right For You?

    Very often in the financial world, people trade on assets that they do not actually own. These financial instruments have exploded in popularity in recent decades, thanks in part to the rise of the internet and the increasing ease with which individuals can get involved in trading. Two of the most popular means of doing this are spread betting and CFD trading. There are pros and cons to each of these two methods, which will be covered in this article.

    What is Spread Betting?

    Spread betting involves essentially betting on whether the value of a particular stock, share, indices or commodity will go long or short. You don’t own the asset, so there are no taxes to pay on gains but neither can you offset losses against gains elsewhere. Most spread betting is leveraged, which means that you put down a small deposit but trade for a much larger value. It’s important to understand the risk involved in this, because it means that if your trade does not go the way you expect it to, you could end up losing a lot more money than you put down. It’s not unique to spread betting but it’s important to be aware of it. On the positive side of things, it does also allow you to multiply your gains quickly with some well placed trades.

    What is CFD Trading?

    CFD trading meanwhile stands for Contract For Difference, which means that two parties will agree to exchange the difference in the opening and closing price of a contract. You can once again go short or long on your trades, so for example if you decide to go short on a trade and the closing price ends up being lower than when you placed the trade, you can profit on the difference. Much like spread betting, you never actually own the underlying asset you are trading on but you buy CFD units instead. This allows for greater flexibility than traditional share ownership, because your trades are self contained and you are not stuck with unfavourable shares from bad trades.

    Since you don’t actually own the underlying asset in either spread betting or CFD trading, you do not have to pay stamp duty on your trades. However, you do have to pay capital gains tax for CFD trading whereas you don’t for spread betting, so in terms of tax efficiency spread betting has the slight edge. The other major difference between the two is that spread betting has a fixed expiry date, whereas you can hold on to CFDs indefinitely except in some specific circumstances. Thus spread betting is more suitable for short term trades, whereas CFDs are better suited for longer term investments.

    The advantages of spread betting.

    1) Shorter trade duration, so your profits or losses are realised sooner
    2) No stamp duty or capital gains tax
    3) Easy to control your stake

    The disadvantages of spread betting.

    1) You own no underlying assets so your portfolio cannot appreciate in value
    2) Losses can easily be magnified with leveraged trading
    3) You cannot offset losses against other gains

    Visit our spread betting comparison page to find the best spread betting broker for you.

    The advantages of CFD trading.

    1) CFDs mirror those of the underlying asset, so if dividends are paid out on the underlying asset, you will get paid dividends on your CFD
    2) No expiry date, so you can hold on to CFDs for as long as you feel necessary
    3) You can offset losses against other gains

    The disadvantages of CFD trading.

    1) Since you don’t actually own the underlying asset, you don’t receive any voting rights associated with the underlying stock
    2) Interest is often charged on margin, so holding onto CFDs for too long can be expensive
    3) You are charged capital gains tax on profits

    Visit our CFD broker comparison page to find the best CFD broker for you.

    Regulated Brokers for Spread Betting and CFD Trading

    There are plenty of brokers for both Spread Betting and CFD Trading, so if you are interested in getting started you will be spoilt for choice. It can be hard to know who to go with when you’re just starting out, so below are some brokers for both spread betting and CFD trading.

    1. ETX Capital

    Trusted by more than 51,000 traders since entering the spread betting market over a decade ago, ETX Capital is one of the oldest and most trusted online brokers around today. They are regulated by the Financial Conduct Authority in the UK and provide one of the widest range of instruments at the lowest spreads available. They offer spread betting, CFD and binary option platforms to suit any trader. ETX Capital offer a customisable platform to show as much or as little technical information you want in a platform and currently offer a great £20 no deposit bonus sign up bonus.

    If you want to find out more about ETX Capital, read our in-depth review of ETX Capital here.

    2. eToro

    eToro is a broker which sets itself apart from the competition by billing itself as a “social trading network”. This means that you can follow other people and copy their trades. This is somewhat like spread betting on a larger level, where you judge a person on their previous trades and decide whether their trades will be successful in the future or not. eToro is generally more of a passive means of investment, where you select certain investors to copy and let them make the trades. While you can become a Popular Investor yourself, which is what they call investors who get copied, it’s a slightly different means of trading than most brokers.

    3. London Capital Group

    London Capital Group is a broker with several trading platforms to choose from, which allows them to support a wide range of platforms from Mac and PC, to mobile and tablet as well as web based trading platforms. This allows you to make trades from wherever you are and on almost any device you might have access to. This is very important, particularly for shorter term trades like spread betting. LCG is a UK regulated broker and have a strong reputation for both CFD and Spread betting.

    4. CMC Markets

    CMC Markets is a broker with a pedigree name, supports both spread betting and CFD trading and allows you to trade across thousands of markets. It’s one of the biggest and best brokers available on the internet and is a great all around choice for online trading. It’s more traditional than eToro when it comes to investing, but if you trust your own trades above those of others then it’s a great choice.

    Spread betting and CFD trading offer similar means of trading on underlying assets without owning them, but there are some significant differences between the two which you should consider carefully before starting any trades. Always be aware that your capital is at risk and losses can exceed deposits, never invest more than you are willing to loose.

    image credit:Salvatore Gerace

    Spread betting vs Binary Options: What’s the Difference?

    The Differences Between Spread Betting and Binary Options Trading.

    Unsure which is right for you spread betting or Binary options?, we break down what are the pros and cons of each so you can make an informed decision to which is right for you.

    spread betting vs binary options

    What Is Spread Betting?

    Spread Betting, often referred to as a form of financial derivatives trading, is an efficient way of doing speculation on the price movement of a wide variety of global financial products which include shares, indices, currency pairs, treasuries and commodities.
    With this form of trading, unlike the normal way of doing trade, you neither buy nor sell the underlying asset instead you place a bet on the basis on whether the price of the product is expected to increase or decrease in value. For instance, if you expect the value of a commodity to increase, you buy a share while if you expect the value of the commodity to decrease, you sell the share.

    An important terminology when talking about spread betting is stake. When you spread bet, you either buy or sell a commodity in accordance with the movement of the commodity, for instance, £6 per point. The implication of this is that for every point of the price of the commodity that moves in your favour, you gain multiples of your stake X the number of points the share price moves in your favour. Alternatively, you lose multiples of your stake size for each point the share moves against you. Something noteworthy in spread betting is that losses can sometimes exceed the deposits you make.
    The spread is another important terminology in spread betting. A spread is a difference in the buying price and the selling price of a commodity. A tight spread implies that the spread you pay is less and the implication is that the cost of trading is lower.

    Margin and leverage is important to understanding when choosing to spread bet. Spread betting being a financially leveraged commodity means that all you need to do is deposit a smaller percentage of the total value of a spread to open a position, the amount is determined by the broker – often called a trade on margin. Leveraged trading enables you to magnify your returns but it can also magnify your losses because the margins are based on the full value of the position of the spread and therefore, you could lose more than your deposit.

    Spread Betting Pros

    One might wonder why to engage in spread betting on the financial market. Well, spread betting has a couple of advantages.
    • You have the ability to sell or buy a commodity. If you suppose the value of a product will increase over the coming days, you can buy the product. On the other hand, if you think the value of a product will decrease, you can sell the product. Therefore, you can protect yourself from incurring losses.
    • You have the ability to trade on a leverage. The implication of this is that you deposit a small percentage of the total value of the trade to ably open your position in the market. Therefore, it is cost effective as often the returns exceed the deposits- that is if you make a good prediction.
    • Another benefit is that you can do trade on varied platforms; global share markets, currency pairs, indices and commodities.

    Spread Betting Cons

    As much as spread betting has a lot of pros, there are also disadvantages involved in this form of trade.
    • When trading with leverage, profits can be maximised however the downside is that losses will also be magnified.
    • Because profits made with spread betting are tax-free in the UK, losses are not tax deductible.
    • You do not own the assets that you are betting on thus you do not benefit as much from them.

    Top Spread Betting Brokers

    1. ETX Capital

    ETX Capital have a wide choice of platform available that are designed specifically for traders. ETX Capital are one of the longest established spread betting providers in the UK and with their experience they provide access to an extensive library of trading resources and tools. ETX offer some of the tightest spreads available and a large variety of instruments to trade from currencies, stocks, indices, commodities, options and more.

    For more information on ETX Capital, read our full review of ETX here.

    2. Core Spreads

    With two great platforms which give access to a variety of markets, you can carry out trades easily with Core Spreads and their user friendly spread betting platform.

    3. CMC Markets

    With this trading platform, you have access to a variety of markets with competitive prices.

    Visit our spread betting comparison page to compare the top spread betting brokers.

    What is Binary Options trading?

    Binary options refer to a type of contract where the payout is dependent on the result of a proposition entered into. The payout has only two possible outcomes; a fixed monetary amount of a predefined unit of an asset or nothing at all. The binary option contrasts with the other financial options which the payoff has a continuous spectrum.

    The main types of a binary option are either the asset or nothing binary option or the cash or nothing binary option. As an option holder, once you acquire a binary option you have no further decision as pertains the outcome of the option because they exercise automatically. In addition, a binary option limits the holder from selling or purchasing an asset. On expiry of a binary option, the holder will receive a predefined amount of money or nothing at all depending on the outcome of the option.
    If you are looking into investing in binary options, you need to confirm that the offer and sale of the asset on binary options platform is registered. With the registration, you will have access to vital information about the terms of the commodity on offer.

    Binary Options Pros

    • Binary options platforms are online trading platforms thus providing traders with the option of doing trade anywhere in the world as all one needs is a PC or a mobile phone.
    • There are a wide variety of binary options on the market therefore, you can adapt your strategy to suit the market conditions.
    • With binary options, you know the amount of risk to expect if your option does not go as you foresaw – losses do not exceed your deposits.

    Binary Options Cons

    However, binary options like all rewarding investments, also have some disadvantages;
    • Binary options have a high turnover. With the fast paced environment the potential for profit and losses is high. This means that binary options is better suited for those with bigger deposits to trade in binary options.
    • Binary options is a short term trading strategy as the positions on trades can close within 60 seconds and last up to 30 days.
    • Binary options, being new in the trading industry, suffers from the fewer assets to trade in compared to spread betting.

    Top Binary Options Platforms.

    1. ETX Capital – Binary

    With ETX Capital, you get the trust and security that comes with a long established and Financial Conduct Regulated broker. ETX Capital are not only a top rated spread betting broker, but also a popular choice for Binary options. They have a good variety of binary options from high/low, one touch, short term and longer term trading options.

    2. 10Trade

    Established in 2014, 10Trade is a relative new comer to the binary options industry and are quickly becoming a top choice platform with their high payouts and user friendly interface.

    3. 24Option

    24Options are one of the most popular binary options platform available today, they also have a user friendly interface and offer a variety of different trading options to suit most traders.

    image credit:kenteegardin

    Top 5 Spread Betting and Forex Broker for Traders in Switzerland

    Spread betting is a method that involves profiting from the price movements of different markets. A trader speculates on whether the price of a certain product will rise or fall. As a trader, you do not own the assets that you are betting on so you don’t have the restrictions that come with ownership.
    Switzerland
    Understanding the concept of spread betting is just one element of successful trading. Finding a broker that you can work with should also be a priority, but there are also other elements you must keep in mind.

    Here is a list of five brokers regulated by the Financial Conduct Authority in the UK that accept spread betting traders in Switzerland.

    1. Core Spreads

    Core Spreads is a registered company based in England. Its prime focus is on spread betting, which is a plus for serious traders. The Core Spreads platform is free of the clutter that characterises other platforms and allowing for a better user experience. It gives you the opportunity to concentrate on whats important to traders, trading. All funds are kept in segregated accounts, for added security of your funds when trading with Core Spreads.. Opening a new account with Core Spreads comes with a 50% rebate on the first month’s trades.

    With Core Spreads, you get a demo account that you can try out. Some of the instruments that traders have access to include: GBP-USD Spot, 30 Cash, Germany 30 Cash, UK 100 Cash, and US Tech 100 Cash with some of the tightest spreads in the industry.

    2. ETX Capital

    ETX Capital is a member of the London Stock Exchange and owned by Monecor Limited in London. After acquiring Alpari UK in 2015, ETX Capital made the MT4 trading platform available to its traders. The ETX Binary platform is a recent addition as well. A trader gets the advantage of having market commentary that is up to date.

    There is insurance for traders’ funds of up to £50,000 from the FSCS. ETX offers one account option that a trader can open with a minimum balance of $100. Traders can opt to have variable or fixed spreads.

    If you are interested in ETX Capital, you can read out full review here.

    3. Spread Co

    Spread Co boast a proprietary trading software, Saturn Trader. The trading programme that the broker offers traders is one of its biggest advantages. Spread Co traders can download the software or use it in the cloud. You have two account choices; the Limited Risk Account and the Standard Account. The Standard Account is cheap, but the Limited Account offers the option of automated stop loss orders. The Limited Account is choice amongst less experienced traders. You can also create a demo account and see if they are the right fit for you.

    4. City Index

    Perhaps the most popular broker in the UK, City Index has been providing its services for over three decades. One of the biggest merits of using the broker is that it covers over 12,000 global instruments. You have numerous choices when trading. The trading costs and margin requirements are low. Traders can get the Advantage Trader platform on their mobile devices

    Another benefit that the trader offers is its resource-filled website. Traders get all sorts of materials to help them learn about spread betting. There is also the Trading Academy that awards winners and a rebate of £250 for an initial deposit of £1000

    5. Capital Spreads

    Capital Spreads is part of the London Capital Group Holdings plc and is well-known for offering tight spreads. The broker offers over 2,500 markets to trade on; from indices to metals to bonds. Some resources like webinars and tutorials are available on the website. As a Capital Spreads< trader, you get access to event calendars, and you can use that to prepare in case of market movements. As part of the resources, there is an expert team that relays relevant information on a daily basis to traders. For a beginner, you can take advantage of the glossary list to learn about the terms people use in spread betting. The broker offers CFDs and Forex trading as well. You can go online to access your account or use the mobile platform available. There is also the choice of opening a demo account. Image credit:sdh_zh

    Risk warning
    You should educate yourself adequately before entering the field of spread betting. It is not advisable to start betting on spreads haphazardly before you learn about the aspects that influence its operations.There are no guarantees when trading and you have to know that there is a chance that you will lose money.

    7 Regulated Forex Brokers with Tight Spreads in 2017

    When you trade in Forex you are not buying and selling currencies, but are making wagers upon whether currencies will rise or fall in value. You always opt for paired currencies to trade, in expectation your chosen currency will rise against falling prices of the paired currency. One of the best ways to assist learning Forex trading is to trade in the currency of your own country at first. You are more likely to recognise developments and news releases that will affect the price of your own currency, so profits may well be higher. When you have developed a confident trading manner, move on to trading global currencies.

    Most brokers provide demo accounts, allowing new customers the ability to find out more about Forex trading before depositing capital. You can also source a good deal of free information, learning, education and seminars or webinars from good brokers, if you want to learn to trade successfully and with confidence.

    If you’re searching around for trusted and regulated forex brokers offering the best tight spreads for 2017, check out the following listing:

    1. Core Spreads

    Core Spreads provides a good welcome bonus of up to 50 percent on the first month’s spreads, and offers traders some of the tightest spreads available in the industry, starting at 0.7 pts. The CorePoints loyalty programme is a good way to earn cash rebates, based on trading activities throughout the month and provides up to 25 percent in bonuses.

    2. ETX Capital

    ETX Capital is an award-winning British broker providing a variety of platforms to clients. The forex trading platform provides very tight spreads on popular currencies, from 0.7 for EUR/US$ to 0.9 for EUR/YEN and AU$/US$. ETX Capital is fast establishing itself as one of the most popular and trusted forex trading brokers in the market.

    3. Spread Co

    This broker provides tight spreads across various currency pairs, for example EUR/US$ and offers new traders opportunities to learn about spread betting on Forex via a useful demo account. If you’re new to trading Forex take as much time as needed to learn tricks of the trade via the dummy account. Spread Co is a British company and regulated by the Financial Conduct Authority in the UK, one great aspect of this provider is that low cost trading gives clients chances to trade for just £1 per point.

    4. CMC Markets

    This is a popular choice amoung new traders, with access to a great free demo account with excellent charting. CMC Markets has tight spreads which start at 0.7 pts and with 330 currency pairs to choose from, there’s sure to be a pairing to suit any trader. Clients who trade regularly each month may qualify for the CMC Rewards programme which provides cash rebates on all qualifying trades.

    5. 3D Markets

    This company also gives frequent traders cash back at the end of each month. The rewards system pays up to 10 percent of the total monthly spread straight back to customers. With 3D Markets traders can trade forex as a spread bet or CFD, with more than 35 currency pairs to choose from. 3DMarkets spreads are fixed during market hours and start at 0.8 pts. This broker provides a demo account to new customers with £25,000 in virtual cash to trade.

    6. Markets.com

    New customers can sign up for a £100,000 practice account with Markets.com to learn to trade forex online. The broker gives a £25 welcome bonus and has tight, competitive spreads. Clients can trade a variety of currency pairs, including exotics and virtual Bitcoin.

    7. DF Markets/a>

    DF Markets is a UK-based forex trading provider, giving tight spreads at low rates of commission. Leverage up to 200 times the cash deposit is available, so clients may only need to deposit £100 but will have ability to trade up to £20,000.

    Trading Forex
    When you’re selecting Forex brokers to handle your trades, don’t be swayed by the best welcome bonus deals alone. Insist that the brokers are registered and regulated by a trusted body such as the Financial Conduct Authority in the UK or CySEC in Cyprus, these authorities provide customers with the best protection against unscrupulous brokers. All Forex traders must be over the age of 18 and need to be fully aware that dealing in currencies via brokers can be a risky investment. Don’t to trade more than you can afford to lose.