2 spread bet or not 2 spread bet

[Cobrien]

Hello all,

I'm fairly New to the trading business, and wanted some opinions on what to do. Living in the UK i have the option to do spread betting, from what I read, heard and seen its pretty much gambling, (sorry if this is not correct), but my question is, as a newbie wanting 2 learn the trading industry am I best to take advantage of being able to use spread betting companies or would I be best going into learn stock trading ie with execution broker only?

Now I know doing spread betting I have the option for leverage so it would be less capital 2 invest. But with all the story's bout company's not playing 2 the rules or should I say bending them so it works in their favour am I best to stay away? Does the prices that come from say the IG INDEX platform do them come from the market or is that the price IG are giving like it or not.

If some of the more experienced traders could share thier insight and clear up I would be very great full and hope 2 start my trading business/hobbie.

 

[alexaherself]

i have the option to do spread betting, from what I read, heard and seen its pretty much gambling, (sorry if this is not correct)

It isn't, really.

Whether it's "gambling" has much more to do with how you trade, and your own attitudes, approaches, position-sizes and degrees of risk. Someone who treats spreadbetting like gambling is equally likely to treat trading the underlying instrument as gambling, in my opinion.

my question is, as a newbie wanting 2 learn the trading industry am I best to take advantage of being able to use spread betting companies or would I be best going into learn stock trading ie with execution broker only?

As a newbie wanting to learn the trading industry, you surely won't be using real money anyway, until you know you have a profitable, robust and consistent method? A demo/practice account is what you need, I think. Plenty of spreadbetting companies will give you one of those.

I don't trade shares, myself, so I can't give chapter and verse on your other question, but IG (if you use them) are effectively market-makers and will be responsible for their own prices.

 

[Cobrien]

Hi alexaherself,

Thank you for your reply. Your correct about I won't be investing capital and going live right away, I have been reading about a few systems, strats etc and just constant reading trying to grasp everything. I know mistakes and looses are going to be made that's the life of this industry.

I have a got a few demo spread betting accounts open to test platforms see which is best for me, but as my original question was, regarding to spread betting am I better to go down this route or go into the stocks/forex through a execution based broker. if it is the case of going the broker route then which would be best for someone based in the UK who wouldst be want to trade the U.S. Markets aswell as the UK and even maybe the forex market.

 

[jkane]

do not trade at spread betting firms

trade at real brokers with real prices

 

[Splitlink]

Hi alexaherself,

Thank you for your reply. Your correct about I won't be investing capital and going live right away, I have been reading about a few systems, strats etc and just constant reading trying to grasp everything. I know mistakes and looses are going to be made that's the life of this industry.

I have a got a few demo spread betting accounts open to test platforms see which is best for me, but as my original question was, regarding to spread betting am I better to go down this route or go into the stocks/forex through a execution based broker. if it is the case of going the broker route then which would be best for someone based in the UK who wouldst be want to trade the U.S. Markets aswell as the UK and even maybe the forex market.

I trade with an SB firm. Today I had 3 trades and took 74 points. I'm nowhere near a good trader, I wish I was much better, but this should show you that it can be done.

Don't be tempted into opening an account with a broker, with a capital requirement of several thousand pounds, where you must trade a contract involving 10 pounds per point. Getting it wrong can be a sickening experience.

Most anti-SB posters have lost money because of their own fault. There is nothing wrong with that but, if they won't face up to it, they won't improve.

SB firms were not the only ones to lose a lot of money over the SNB incident. Large dealerships did, too. Some went bust.

You take care of your money and Good Luck, whatever you decide to do..

 

[Hate2Lose]

Hello all,

I'm fairly New to the trading business, and wanted some opinions on what to do. Living in the UK i have the option to do spread betting, from what I read, heard and seen its pretty much gambling, (sorry if this is not correct), but my question is, as a newbie wanting 2 learn the trading industry am I best to take advantage of being able to use spread betting companies or would I be best going into learn stock trading ie with execution broker only?

Now I know doing spread betting I have the option for leverage so it would be less capital 2 invest. But with all the story's bout company's not playing 2 the rules or should I say bending them so it works in their favour am I best to stay away? Does the prices that come from say the IG INDEX platform do them come from the market or is that the price IG are giving like it or not.

If some of the more experienced traders could share thier insight and clear up I would be very great full and hope 2 start my trading business/hobbie.

I started with SBs. Good for beginners, but once you start taking it seriously it’s better to look for direct market access (DMA). You’re right, spreadbetting companies are like bookies. To a degree, they make their own price.

Look for a CFD provider that gives you DMA. That way, you get the leverage (assuming you want that) and deal direct to the market.

 

[Spread-Bettor]

Financial spread betting is not necessarily gambling... it's what you make of it.
Spread betting is just a tool for you to trade markets tax free and it's entirely up to you what and how you use it...

 

[Splitlink]

For an inexperienced beginner to forex, or any other type of trading, expecially those with a gambling instinct--Beware of direct access with a broker. You need stakes from 50 pence per point. Researxh, regularly, your win to lose ratio. You will lose more trades than you win, that is pretty well accepted by most, but how little do you lose on the losers compared with how much you win on the winners? That is what will make, or break, you.

 

[f2calv]

do not trade at spread betting firms

trade at real brokers with real prices

If you're new to the "trading game" then there is no reason not to start at a spreadbetting firm. You're just as likely to lose money at a broker as you are at a spreadbet firm when you haven't got a clue. And brokers tend to want bigger opening balances on new accounts than a spreadbet firm.

When you're a n00b trader at least the user-friendly/simplistic spreadbet web interfaces/apps will act as a gentler guide in whilst you get a hold of the key concepts.

Once you've got to grips with things then of course move onto a broker.

 

[luckystrike23]

check this channel out https://www.youtube.com/user/ukspreadbetting

Simon Denham (former CEO at LCG) and Dan Moczulski share a lot of interesting insights about the subject...

https://www.youtube.com/playlist?list=PLnSelbHUB6GQ5XPIU6h_Fw1-tk2OJc9Nt
https://www.youtube.com/playlist?list=PLnSelbHUB6GQnnxY4ZRLwHxgI_ulSxAGg

 

[CityTrader]

I haven't bothered to read the other replies, but in a nutshell, it's gambling is as much as you'r betting on the price direction of the underlying asset. The same way in effect buying an individual share is. You're taking a view ( investment/punt/trade/gamble!) on the price direction.

Don't get too hung up on spread betting vs CFD's, vs the underlying -DM if you want further explanation

 

[chillic]

It isn't, really.

Whether it's "gambling" has much more to do with how you trade, and your own attitudes, approaches, position-sizes and degrees of risk. Someone who treats spreadbetting like gambling is equally likely to treat trading the underlying instrument as gambling, in my opinion.

I agree with Alexaherself. If you have a system which itself has an edge and you are applying strong risk and money management techniques then I don't personally believe SB'ing can be classed as gambling at that point.