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Trading News How does a spread betting account work?
Trading News How does a spread betting account work?
How does a spread betting account work? |
| Written by Trader Hideout Editor | |||
| Tuesday, 02 December 2008 16:05 | |||
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If you want to start spread trading, then the first step is to open an account, which is a pretty straightforward process. You can have an online or telephone account. As an investor, you can hold a ‘credit’ account, where you can deposit funds into your account with your chosen spread betting company and any profit or loss is added or removed from your account. A ‘debit’ account is where you provide credit or debit card details and when you place your spread bet, the maximum potential loss is taken from your card upfront and any profit is later credited back to your debit or credit card. If you have any funds sat in your account, the spread betting firm will pay interest, often monthly, on the account and you will receive regular statements in accordance with the Financial Services Authority (FSA) requirements. The spread betting industry is regulated by the FSA and all accounts are kept separate from the spread betting firms trading accounts. In addition, you are free to open as many spread betting accounts as you wish and accounts may be closed at any time.
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