When you look at financial spread betting from a distance there are a number of factors that can make it seem like one of the most lucrative opportunities in the world. Tax free income, limitless potential, and its use as a secondary source of income can all seem overwhelmingly appealing to the uninitiated, and while the opportunities are indeed immense there are a variety of risks associated with financial spread betting that make it in your best interest to educate yourself as much as possible before actually putting any money on the line.
While there is a wealth of information available on the internet, and financial spread betting is becoming more and more popular in the 21st century as more countries and more markets emerge for traders to invest in, it does not necessarily mean you need to spend months or years getting yourself up to speed on how the markets work prior to actually investing. It may vary from individual to individual, however education as it pertains to financial spread betting can be as in-depth or as cursory as a trader chooses, although most professionals will tell you that you the better you know your market and the better the platform you choose to use, the more likely you are of making a profit. As a result, while it is true that education is important, there is no substitute for experience, and until you get your feet wet you will find it impossible to truly gauge the playing field.
Once you have taken the time to research financial spread betting and understand how it works, one of the first steps prior to setting up an actual account is to determine who to set up an account with. The question of who is the best spread betting company or broker is a completely arbitrary one, because just as every individual has a certain bank they choose to use, a certain brand of car they prefer to drive, or a certain grocery store they prefer to shop at, every individual will have a different spread betting firm or broker that they prefer over others. When it comes to choosing your firm, it is important to look at the types of markets they offer, and how competitive their bid-offer spreads are. Finding a company you are comfortable trading with is paramount to your success in the long run, and just as chemistry is important in any other relationship, it is just as important here. Take a look at their online trading platform in relation to the competition, and gauge the size of their minimum bets, because when you first get started your losses need to be kept to a minimum, so the smaller the bets they allow, the better it is for you. Customer service is also important, and how well a firm treats their traders reflects on how important you are to them. And last but not least, you need to be confident that the platform they offer is effective and fast.
The next step on your journey of financial spread betting is to determine how much money you want to start up with. Some spread betting companies, such as ETX Capital, will give you a special offer to entice you to use them. It’s worth checking some of these out as it will mean that you have some initial extra funds to play with and therefore can limit any initial losses while you learn. Always remember that you could end up losing more than you put in though, so the best way to overcome this when you first start is to only put in as much money as you are comfortable losing and to trade small. There is plenty of time later to increase the size of your bets once you are confident in your own abilities, the market research sources you have gathered and the trading platform you are using.
Once you have taken the time to educate yourself on how financial spread betting works and determine how much money you are willing to risk and potentially earn, it simply comes down to picking a broker or firm, opening up an account, and starting your trading. It’s generally an easy online sign up process – although you may need to give some information that guarantees you are who you say you are so have your passport details to hand – and you could have your spread betting account within a matter of minutes. With access to global markets in an age where technology is allowing on the spot market trending, fast and reliable news sources and, over the last couple of years highly volatile markets, there is no time like the present to start earning tax free income, and financial spread betting is one of the best and only ways to do this.