Where can you trade in financial spread betting?

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Where Can You Trade Financial Spread Bets?

Trading in financial spread betting, or financial spread bets can seem rather daunting at first. Namely because the skills needed to effectively trade them, is based 99% on trading the methods, information, training and techniques required, than actual any skill or judgment that maybe needed in betting/gambling. Knowing the differences between say a bookie, that you would say use for gambling or betting on horses and that of a financial spread betting company, will go a long way in your understand of why financial spreads are unique, the companies involved in them and why you can, in some countries, depending on tax laws related to gambling, actually walk away with out paying any tax on your profits.

A Brief History In Time

Financial spread betting began, in a basic form from an idea had by a then stockbroker Stuart Wheeler, as a means of speculating on gold, without any need on the purchase of gold. In fact, at the time, in the early to mid 70’s, private individuals were not allowed to speculate on the price of gold directly, like you can today and in fact the price of gold was fixed by a consortium. I have written another article, that does explain in greater detail the history of financial spread betting and the story of Stuart Wheeler. Stuart Wheeler provided this service to fellow friends and other stock brokers, partly as some fun and then realized, that this was becoming more profitable and later developed a means of taking profit from the difference of the prices set for the buying price and the selling price, which was and still is known as the spread.  Wheeler went on to later found IG Index (Investors Gold Index).

During the 80’s, with the rise and boom of the UK economy and the interest in trading with retail traders becoming more prevalent, further financial spread betting firms appeared, but were, predominantly offering the service to professional traders, but this gradually changed to be more widespread to the retail market in the 90’s. The main reason why this was, was partly due to the rise of the ‘dot com’ boom. Both the rise and fall of it so it happens. As many realized, that there was a way of profiting, quickly, by gambling on the stock going short (down in value), which many Internet companies were doing back then, from relatively quick IPO’s.

This spawned a massive amount of interest. More so, in 2003, I personally launched the first online trader training course in technical analysis, that provided video, training, personal support and direction in trading in financial spread betting and Forex. At that time, financial spread betting was still, in terms of the general public, seen as somewhat suspicious. Most of these misconceptions held, were based on not understanding how trading works and that, as I have said previously, betting/gambling on financial spread betting, has more to do with trading than gambling/betting. Yet, gambling in most western cultures has a negative association with it.

Things Have Changed …. For The Better

Thankfully, in the last 13 plus years, we have seen dramatic changes, in the public perception with financial spread betting. The market, has taken a long time to mature, but mature it has. Now financial spread betting is used as a means by professional traders, to have a means of trading, for the sake of perhaps an extra cost associated with the trades made because of the spread paid (please see my other article on financial spread betting to understand how the spread is calculated), is relatively small compared the tax savings made on profits made not being taxable. In fact, this is one the aspects I would ask any trader, say in Forex and so on to understand. That if you are trading using a FX broker, the profits that you make on those trades are taxable, yet it maybe worth your while to spend more on the spread and on making your trades, certainly if you are profitable, to trade them using spread betting, as the tax you pay on your profits will be zero, which will outweigh the cost associated with cost of the spreads.

As an aside here, I offer any established profitable traders a service, that is free, where we calculate the benefits of them trading in financial spread betting, as opposed to trading in the current method they use. I am convinced that the savings made against any profits, outweigh the additional cost of the spreads made when trading. Please contact me at assistance@besmartlimited.com – with regards to this.

You Are Spoilt For Choice

Today, there are many brokers, and I still prefer to call them brokers, as opposed to financial spread betting companies. Many are in fact owned by brokerages now, simply because they have the resources, the known how and the market knowledge to back up these companies and services provided online. Nearly all the financial spreads companies offer an all inclusive online trading toolset, which consist of charting, quoting, account management and more. Unless you are a professional trader, chances are the tools provided by many brokers these days, mostly for free, will enable you to make the good part of your trading decisions.

Financial spread betting has matured, become a widely accepted method of trading the markets and give anyone, regardless of experience, the ability to trade in the fast and sometimes furious, but never dull financial markets. Do not forget, that trading in any financial instrument requires a good degree of knowledge, skill and understanding. You cannot do this without that knowledge. Thankfully, we do provide a free course in technical analysis and trading, which will enable you to learn to trade and what’s required. You can register absolutely free, there is not charge, simply by entering your name and email in the box on the top right.


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