Compare Spreads for the GPB/USD

By mosesbet · Filed Under Uncategorized Comments Off on Compare Spreads for the GPB/USD 

Spread Betting on the GBP/USD

Many individuals would like to explore the opportunities of trading the currency markets but are of the belief that to do so an account needs to be opened with a specialist forex broker and a large deposit needs to be placed with them.

This is not the case, because the forex markets can be traded using one of the spread betting companies.  Due to the leverage that goes hand in hand with financial spread betting, there is no need at all to have to place a large deposit to be able to place a bet.

One of the most popular markets of this type to trade on is the GBP/USD, or cable as it is commonly known ( the reason it is known as cable is from the time a cable was run under the Atlantic Ocean which relayed the currency prices between the UK and the US)

Best Spread Betting Company For Trading The GBP/USD

When choosing a financial spread betting company to bet on the GBP/USD, it is important that the individual take several different factors on board. For instance, if trading on the move then any mobile app needs to be robust and stable, if new to spread betting or the forex markets in particular then a broker who offers first class training and advice should be the one that is opted for.

When it comes to the spreads that are offered, that is obviously something to take into consideration, but in popular markets such as the GBP/USD, all of the brokers offer very tight spreads so it is not really a deal breaker when choosing which is the best broker for this kind of trading.

If push comes to shove, the number one company for trading the GBP/USD would have to be IG Index, but that is just personal choice because they are first class in every aspect of their operation.  Many experienced spread bettors would argue that they would be the number one choice for spread betting on any market.

Comparison Of Different Spreads For The  GBP/USD

The spreads on all forex markets can vary depending on those that are offered by the banking institutions to the spread betting companies but a guide to the spreads cab be viewed below.

Igindex.co.uk – minimum spread 0.8 points

CapitalSpreads.co.uk – 1 point

CityIndex.co.uk – 0.8 points

WorldSpreads.co.uk – zero points

Etxcapital.co.uk – .002 points

Tips For Trading GBP/USD

The forex market as a whole is especially sensitive to any economical data and what may seem like a pretty mundane announcement can see the GBP/USD make a very large upwards or downwards move.

For individuals who are spread betting on the GBP/USD, one of the best times is between 8am and lunch time UK time. The reason for this is that there is plenty of liquidity in the market and there will be no untoward announcement from then US due to the time difference.

Unless you are an experienced trader, it would be advisable to stay out of the market on the first Friday of every month when the non farm payroll’s are announced. This can send the GBP/USD into something of a frenzy and many experienced traders as well as those just staring out have found themselves experiencing the pleasure or the pain of such dramatic market moves.

Trading the GBP/USD requires strict money management procedure; it is totally different to spread betting on the equity markets and has often been described to being similar to a game of poker so the correct mindset is also another requirement for forex bettors.

 

 

 

Be Sociable, Share!