Broker of the month: ETX Capital, read our expert and 30+ client reviews here
If you’re looking for the best spread betting platform for beginners we’ve put together a list of the top 5 brokers and more importantly reasons why they are good.
Spread betting is a highly regulated financial product and profits are free of capital gains tax. However, if you’re new to spread betting here’s what you need to look out for.
First, what are the top five brokers for spread betting beginners:
Here’s a reason why each of these spread betting brokers are good for beginners:
ETX Capital: a good all round broker for online execution. ETX is all about quality and robust technology. ETX’s TraderPro offers a simple interface with access to over 5,000 markets. ETX offer a range of education including webinars, seminars and an advanced education course which are all FREE to ETX Capital account holders. To top it off, ETX won the “Best Education” award at the 2018 Online Personal Wealth Awards. Founded in the 1960’s, ETX is one of the oldest spread betting brokers around.
IG: put simply they are the biggest spread betting and CFD broker in the world. They are listed on the London Stock Exchange and are currently valued at over £3bn. If you plan on becoming a full time professional trader or have a very large amount of money to trade with their platform and staff can cater for your needs as your trading progresses.
Spreadex: nice old school broker. Based in St Albans, just outside of London. Helpful staff, excellent customer service and a simple to use platform. Spreadex also have one of the largest market ranges allowing new traders to experiment with all sorts of trading from small caps, to crypto to fixed income. Plus you can spread bet on the horses and foot ball at the weekend with their sports spread betting offering.
ayondo: these guys offer social trading. Which means you can copy what other traders are doing. If they make money, you make money. But beware, if they lose, so do you. You can also become a trade leader and earn money if people decide to copy your trades.
Core Spreads: as the name suggests they focus on trading, no bells and whistles or add ons. Just a simple to use platform with really tight spreads.
A few things to avoid when starting to spread bet.
- Don’t over trade: which diversification is good, using up all your money in margin and not having an leeway is bad.
- Don’t go with a foreign broker: only trade with FCA regulated UK based brokers
- Don’t trade unprotected: always use a stop loss to minimise your losses
- Don’t run losses: always run your profits and cut your losses early
- Don’t think you know it all: the biggest hedge funds in the world only make a few percent a year.
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Richard started the Good Broker Guide in 2015 and has been a broker for 20 years most recently at Investors Intelligence and previously acting as multi asset derivatives broker at MF Global (Man Financial). Richard started his career working as a private client stockbroker at Walker Crips and Phillip Securities (now King and Shaxson) after interning on the NYMEX oil trading floor in New York and London IPE in 2000.