How to choose a spread betting company (Part One)

Once you have done your research into spread trading and spread betting and have decided it is something that you want to try, the first thing you will need to do is to research your chosen market. You should only invest when you are ready, as spread betting is an investment where you can sometimes lose more than you invest.

When you are ready however, the next question is then which spread betting company to use. Here are a few questions to consider before placing your first spread bet or when switching companies as a professional spread better:

1. Cost is an important factor and some spread betting companies aim to make more than others. Check the size of the bid-offer spread in your chosen market with the company and their financing requirements
2. Ensure the platform is stable. You do not want to try and close a trade, or even open one, and find the site is down
3. If you are sure the platform is stable, check how easy it is to use
4. Customer service – this is especially important if you are a novice as you want someone polite and helpful on the end of the phone so you can ask any questions and be sure what you are doing
5. Company reputation – is the company in good standing? You need to be confident that your funds are safe.