Features Needed From A Spread Betting Account
There are numerous features available in spread betting account platforms. Each broker will be different and although they all provide prices for you to trade, many spreads, order types and other account features may differ. For instance one broker may need you create a ticket for the instrument you wish to trade before executing the position, and another broker may have one click execution.
Stop losses and the automatic placing of them also varies between brokers. There’s a platform I used recently where the stop loss on any position opened is placed at the maximum distance from entry which your account balance allows. This covers them, and you, from having a losing position to go negative and lose more than the original deposit into your spread betting account. This idea (as long as you remember to adjust the initial stop to something less risky) is great for allowing fast trading on prices. There are brokers whose systems will not let you trade until you have typed in a stop loss level on every ticket you open. If you are trading when markets are moving fast this type of order can stop you getting the price you intended to trade at. On the flipside of this, it can be useful to help manage your risk but not allowing you to trade until you have thought about exit levels.
From charting to order types, from online funding to withdrawing a spread betting account needs to have the features which suit your trading style and financial needs. Before opening an account ask yourself , “what do I need from a new spread betting account?”. Then list the main things which would allow you to follow your trading strategy properly. If you need charts add this to your list, if you need fast execution add this to your list also. However you might use a standalone charting platform, so the account may not necessarily need to have charting as a main feature.
Once you have your short list of features needed you can then browse through some of the well known brokers and open some demo accounts. Usually a demo spread betting account will be a fully functional working version of a real account but loaded with a virtual balance to place “demo” trades with. Using a demo will give you an idea if the broker has the correct features you need to follow your trading strategy.
Once you have selected the spread betting broker whose account has the needed features you can usually open a full account without depositing funds. You can then check that the platform is the same before funding and commencing with your trading.