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How do I Choose the Best Spread Betting Firms?

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  • Written By: Bobby R. Goldsmith
  • Edited By: Susan Barwick
  • Last Modified Date: 06 March 2020
  • Copyright Protected:
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    Conjecture Corporation
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In spread betting, no factor will determine the success or failure of the strategy more completely than the choice of spread betting firm. The brokerage makes or breaks the long-term viability of spread betting for any investor, as the entire process of research, analysis and investing becomes moot without the services provided by spread betting firms. There are five elements that any spread betting investor needs to look for when evaluating spread betting firms. Any respectable spread betting brokerage house needs to offer a wide variety of investments on which to place bets, provide investors with fair spreads, the ability to roll over or parlay winnings, low commissions, and automatic metric-based oversight of an investor's account.

One of the most important factors for an investor to consider when choosing between spread betting firms is the diversity of the available portfolio. The wider range of available options for spread bettors to choose from increases the long-term viability of spread betting as an investment tool. It is best to find a company that tries not to specialize in any one index but to work instead with spread betting firms that work in all global markets. Though most experts advise spread betting investors to work exclusively through one brokerage firm, arbitrage spread bettors operate by playing one broker against the other in order to secure reduced risk wagers.

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Diversity is not limited to which markets the broker allows bets to be placed in. Spread betting firms should offer a wide range of different investment vehicles for investors to wager on, such as stocks, bonds, treasury notes, commodities and currencies. Along with this diversity, useful spread betting firms will be able to automatically roll over winnings from bet to bet in order to maximize profit expediently and conveniently. Avoid spread bet brokers that offer only single-bet transactions, as they offer little in the way of value for serious, long-term investors.

A reputable broker will offer reasonable spreads on a variety of markets. If a broker is offering a spread that is either too generous or too stingy, avoid them. Spread betting firms that charge commissions even for long-term investors with direct deposit accounts should be avoided as well. Reputable brokers will be more interested in keeping your long-term business, and they will waive transaction fees and commissions so long as the bettor opens an account.

Always check to see what other automatic features each of the spread betting firms offers when making your selection. The top flight brokers will be able to offer automatic stop loss analytics that allow investors to set trigger parameters in advance, that will cash out or halt wagers when certain metrics are realized in a particular market. Full-service brokers will also offer automatic wager placement when particular market metrics occur, allowing investors the ability to take quick advantage of short-term opportunities as soon as they occur.

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