If you are thinking about trading using financial spread betting then you need to think about selecting an account from one of the spread betting companies there are in the market. There are lots of them to choose from and it can seem quite overwhelming when you first start searching.
It is important not to panic and realise that this competition between companies is actually a good thing. It means that you as a trader get a better deal. You must also realise that there are all these firms because they make a lot of money so think about that when you are selecting.
Most, if not all, spread betting companies are regulated by the financial services authority (FSA). You need to ensure that yours is too. This is a basic check and 99.9% of time not necessary but it is best to be sure.
If you are new to this then you should be looking for spread betting companies that offer dummy accounts. Yes not trading for real more may not sound exciting and will not be exactly the same as the real thing but it is in your interests to do it. This gives you a chance to see what the company and their software are really like.
Lots of companies offer cashback as an incentive to opening an account. This again shows how much money these firms are making from you. While it is nice to receive cashback remember this shouldn’t be the sole reason for opening an account. Maybe you could take advantage of this to open a second account.
The crucial thing about selecting spread betting companies is the size of the spread. This is how they make their money and this is where the majority of your costs go. They don’t charge commission so it feels like you aren’t paying anything. You are paying through the spread. This is one of, may be the most, important things to look out for. This is what the winning traders use to make their selection.