Financial Spread Betting Sees Growth in the UK of 88,000 New Accounts per Year

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In the past twelve months, close to 100,000 investors in the UK have used financial spread bets. However, most of the investors were not keen on going for short position options in equities through the retail derivatives.

Spread Betting Client Figures Improve from Last Year

Based on a report published this year by Investment Trends, a research firm, 7,000 people created accounts and carried out their first trading activities or spread bed in the 12 months leading to July. This year, the number of customers opting for spread betting went up to 88,000. It is an increase from the customer numbers – 83,000 – of October last year. Along side, there was a rise in the figures of people who opted for contracts for difference (CFDs), from last year to this year. It increased from 25,000 to 26,000.

Previous Conversion Rates Suggest that 20,000 People May Enter Spread Betting

In a nine month window, the total number of traders who have been active in both CFDs and financial spread betting has increased. It has moved from being 91,000 to 98,000. approximately 20,000 people can be expected to enter spread betting in the coming 12 months. Around 10,000 are likely to try their hand at CFDs. This is based on previously recorded conversion rates and a survey that was conducted on the intentions of investors.

When compared to the period from September 2009 to October 2010, there has been an increase in interest in CFDs and spread bets. This has happened at a time when market volatility has increased. It has been accompanied by a rise in the scope for using CFDs and spread bets, while short-selling individual indices and shares. There is quite a lot of confidence in shorting among those trading equity index bets.

Long Moves Preferred by Spread Betting Clients

One of the key reasons for this is the availability of information about the geopolitical status currently. However, those who opt for short-selling are staying with it only for small periods. Based on market analysts’ views on trends among people, especially in the UK, those who prefer spread betting generally opt for long moves. These are sometimes interspersed with short adjustments that are corrective and sharp.


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