Regular readers will know that I have spread betting accounts with most providers. This is not only for journalistic reasons (so I can write about them) but also because their slightly different offerings means that they can be useful in different scenarios. One of my all-time favourite spread betting companies is Bux Markets (previously known as Ayondo). Bux Markets is a spread betting, CFDs and social trading platform launched in 2009. The company’s The company’s headquarters are located at Floor 4 Audrey House, 16-20 Ely Place, London EC1N 6SN, in the United Kingdom and Bux Markets is regulated by the Financial Conduct Authority “FCA” in the UK, under registration number 184333.
Here are some of the reasons why I like Bux Markets (previously known as Ayondo), in addition to the usual tight spreads and fast execution.
Nice Platform with a Wide Range of Markets
A few spread betting companies make their platforms so complicated that you spend more time adjusting windows and widgets than you spend planning and executing your trades. Not so with Bux Markets, which has one of the most intuitive and responsive platforms.
Free Guaranteed Stops
Bux Markets offer free guaranteed stops on most of their products except on equities. All they ask is that the minimum distance is upheld and its below a certain size. So for instance on the Dax Index as long as the position is below £25 per point and the stop loss is at least 34 points away the stop will be guaranteed free of charge and automatically by Bux Markets. They are now also insuring accounts up to 500k which goes well over and above the the existing Financial Services Compensation Scheme (FSCS) guaranteed capital threshold.
No Negative Balance Policy
When trading one should bear in mind that spread betting is a leveraged product, and can result in losses that could exceed your initial outlay. The people at Bux Markets realized that some people might not wish this added risk exposure so they’ve setup a special guarantee where they’ve waived the negative balance funding obligation
Favourable Financing Policy
Unlike other providers Bux Markets will only charge you overnight financing on the amount you actually borrow to keep positions open. So if you open a trade for GBP10,000 and put up GBP3,000 as margin to open the position, Bux Markets will charge you interest on the net GBP7,000 (the amount you have effectively borrowed) if you decide to keep the position open overnight.
Award-Winning iPhone and Android Apps
If you prefer to trade on the move via your iPhone or Android mobile phone, rather then being tied to your desktop PC, you can use the Bux Markets iPhone or Android app.
Easy Access to Your Money
Some spread betting companies make it easy enough for you to deposit funds but make you jump through hoops in order to get your money (ideally winnings) back. Bux Markets makes it easy to request a withdrawal on-line and to see the money back in your bank account within just a few days.
Wise Words from Bux Markets
A market analyst at Bux Markets provided the following simple but profound suggestion for spread bettors:
Don’t run your losses!
Allowing a losing position to get worse by moving your stop order further away is a cardinal and common error made by retail clients; one which you would never expect a professional or institutional investor to do. Our psychology as traders and rational human beings drives us to bite our finger nails and hope (or even pray) that a worsening position will come back in our favour; rather than biting the bullet and cutting the loss. If the market does come back, the temptation is to breathe a huge sigh of relief, close the position for a meagre profit, and congratulate ourselves on having done so well to avoid a £1,000 loss and actually realise a £10 profit. It sounds logical, but is not good risk management.
So now you know what I like about Bux Markets — intuitive platform, wide range of markets, free guaranteed stop orders, award-winning mobile trading apps, and easy access to your money.