You Can Never Have Too Many Spread Betting Accounts!

The sensationalist headline “You Can Never Have Too Many Spread Betting Accounts!” is not exactly true, of course, because too many accounts can become unmanageable and time-consuming. But I believe that you do need more than one account, and ideally more than one account provider (because some brands are run by the same provider). Here’s why:

  • I’ve lost count of the number of times I have wanted to trade XYZ plc (not a real company) only to find that it isn’t offered on a particular spread betting platform. Or, it is available, but the minimum stop distance for my preferred guaranteed stop order would be too wide to give a viable risk-reward ratio on my first-choice platform. Or, my first and second choice platforms are mysteriously inoperative the very minute I wish to trade, so I need to go to my third choice. Or, my third choice platform doesn’t have an Android app when I need to trade on-the-move, so I have to trade in my fourth choice account.
  • I was mighty glad not to have placed all of my spread betting eggs in a single basket (i.e. with a single account provider) at the time of the World Spreads collapse. I eventually got my money back from the Financial Services Compensation Scheme (FSCS), but I would have been left impotent — from a trading point of view — if it was the only spread betting account that I held.

Even if you’re happy with your current provider, it may be time to look at opening a second- or third-choice account to reduce your risk and increase your trading flexibility. To help guide your choice, over the past few days I have posted my thoughts on the preferred spread betting providers that I use; and I have also provided this information as fixed mini-review pages for Capital Spreads, IG, InterTrader, ETX Capital, SpreadEx and Spread Co.

Two Steps to Better Spread Betting:

1) Buy the Better Spread Betting Book
2) Sign up with Capital Spreads, IG, ETX Capital, or Spread Co

Disclaimer: this posting is for general education only; it is not trading advice.