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Choosing the best Spread Betting Broker to suit you

I want to speak a little about choosing a spread betting broker after all its where we need to start before we can trade on any kind of Forex market. With the major brokers finally coming on board like Alpari, there is no reason not to get sign up to start your journey into the Forex trading world. Its no wonder trading the financial market has got so popular, people are getting really fed up with pathetic interest rates they get on their savings, some as low as 0.02%! And with the economy in the worse state it has been since the 1940's more people are looking to learn a new skill and taking action to earn some extra cash. Because of the increasing popularity of spread betting, this means more and more companies are looking for your business, which is good news for us, because it means they are competing and getting the best offers and rates, to give to us, the customer. So I have created a handy checklist to help you choose the right spread betting company to suit you and your trading style.

First things first you need to check if they are regulated or not. Most brokers are regulated, but many aren't, some of these unregulated broker may look like they offer some great deals and fantastic rates and because it can be a bit of a challenge to find a broker that suits your trading needs, it can be very tempting to go with an unregulated broker who appears to have what you are looking for. While an unregulated broker isn't aways going to rip you off, the odds are definitely against you. Bottom line is Always use a regulated provider. All of the top rated brokers in the UK are all registered with the Financial Service Authority (FSA), if based in the US the top rated brokers are registered with the National Futures Association (NFA) or

the Commodities Futures Trading Commission (CFTC) This should be clearly displayed on their webpage so you shouldn't have any problem finding this out.

Next thing we need to check is 'dealing spread' Now you may think that spread betting providers don't charge 'commission', this isn't 100% true. The spread betting companies rely on what we call a 'dealing spread', this is the difference between the bid and ask price, or as it also know as the buy and sell. For example the spread on USD/JPY is normally 2-3 pips. The sell price would be 0.89882 and the buy price 0.89884. So if you were trading at 1 a pip the cost of each trade would be 2. This is how Spread betting companies make their money, so when your looking for a spread betting company, make sure the dealing spreads are low and competitive.

Ok another thing; make sure they offer some kind of demo trading. Most brokers offer you a free demo account to play around with, imagine it as playing with Monopoly money. You can deposit a pretend amount of money and trade it exactly like you would real money, this way you can test your trading and get it up to scratch before taking the plunge and depositing your hard earned cash. I recommend you always start with a demo account if you are new to trading, it is a vital start to your journey, its the perfect way to learn, and remember, always treat your demo account like you would a live account. One more thing... Try and take advantage of bonus offers, there is a few spread betting companies that are now offering great incentives to join. This is great news for us.... But it should never be the main factor in your decision. If you find two or three providers that meet your needs, its wise to look

at the various joining bonus's they provide. If you stick to these basic rules, you should be up and trading with a great broker very soon. Who do I recommend? I obviously have my favourite broker, although like I mentioned before you should make your decision on your own needs and style, some brokers that are great for one person, may be wrong for another, its all playing around with a few free demo accounts Try before you buy! Until next time Chris (admin)