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Choosing a Company with the Tightest Spreads

There is nothing at all wrong with choosing a financial spread betting company with the tightest spreads, after all, profit is most definitely the name of the game and using a company with the tightest of spreads will effectively mean more pounds in your pocket.

But,it is extremely important, especially in this day and age, to look at the bigger picture.

Spread Betting Markets Compared:

Our team at Spreads.org.uk have compared the tightest spreads offered by different brokers below.  Click the links below to find the tightest spreads for the most popular UK markets.

Choosing a company to do business with based entirely on the size of the spreads could be a mistake and nowhere was this more evident than with WorldSpreads.co.uk, who offered a mouth watering zero spread on some of the leading markets.

Unfortunately, the term, ‘if it looks to good to be true then it probably is’ certainly applied here as this company has been forced to shut down due to an alleged fraud. It should be noted that it is extremely rare when something like this happens but it just goes to show that you need to be aware and don’t be seduced by various marketing ploys which are designed to obtain your business.

How to Choose Brokers Based on their Quoted Spread Size

When looking at the spreads that the spread betting brokers offer, you should be careful with the wording of the spread descriptions, descriptions such as spreads ‘from’ 1 point are common, as are different size spreads for different times of the day but one company which offers spreads of only 1 point without any catches is the highly reputable broker, capitalspreads.co.uk. This company has really progressed over the past couple of years and their offer of 1 point spreads over a wide range of popular markets most certainly takes some beating.

For example, the UK 100 and Wall Street rolling daily bets are only 1 point as are all of the other popular markets. When you add to the fact that capitalspreads.co.uk have a highly robust trading platform in place it is not at all difficult to understand why they are considered as something of a  threat to the likes of IG Index.

One aspect of the size of the spread that you should be aware of though is that if you choose to implement a guaranteed stop loss you will have to a pay a premium (in the form of a slightly larger spread or an additional cost),, which is implemented in the form of an extra charge. This is the case with all of the major financial spread betting brokers so even though it may be seen as a slight inconvenience it really is a level playing field and at this point of time, no particular broker can lay claim to not operating in this way.

When choosing which broker or broker you are going to do business with be sure to take the time to carry out a little research regarding the spreads. Make a note of which markets you usually trade and compare what the firms can do for you, as already mentioned, it is unwise to base your decision on the size of the spreads alone but instead take other aspects into account such as the charting package which is included, the standard of the educational resources if that is what you require or even the mobile trading platform if you are someone who likes to trade on the move.

So, even though you can see that the size of the spreads are of importance, there are many other aspects which you should take into consideration to ensure that you are getting the best possible all round deal from your broker but it would be hard to beat the all round package that capitalspreads.co.uk is able to offer the discerning financial spread bettor.

 

 

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