FinancialSpreads Review

1.   About FinancialSpreads.com

FinancialSpreads.com is an UK based spread betting broker that was recently founded by the London Capital Group, which also controls Prospreads and Capital Spreads. Consequently, this broker has benefitted from a parent company that has already established an impressive reputation in the derivatives trading sector. In addition, the trading platform supported by FinancialSpreads utilizes the proprietary price feed and technology designed by the London Capital Group. As this broker has based its spread betting facilities and services in such a way, it has succeeded in developing a strong brand name since its inception.

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2.   Trading Markets

Registered members of FinancialSpreads can execute spreads bets using an extensive list of assets based on multiple markets, such as shares, commodities, Forex, and indices. For example, you can readily open bets using underlying securities, such as the EUR/USD, Gold, FTSE 100 and Oil, etc.

Similar to many of its key rivals, this company claims that it quotes competitive spreads. Although this statement is basically true, you must appreciate that there are other brokers which specialize in offering even tighter spreads. However, a major benefit of this firm is that its advertised spreads are fixed which presents a distinct advantage compared to its rivals.

FinancialSpreads does not explicitly promote the size of spreads that it supports but the following examples will provide you with an idea about what is essentially on offer:

–       Assets, such as the USD/JPY, FTSE, EUR/GBP and EUR/USD, attract 1 point spreads.

–       Securities, such as the GBP/USD and most USA stocks, attract 2 point spreads.

This broker services ‘rolling spread’ and ‘daily cash’ betting contracts but does not offer the standard ‘quarterly’ option. As such, the products supported tend to require significantly lower margins to activate spread bets compared to the quarterly contracts. In addition, the two mechanisms on offer monitor and track the directional movements of their underlying markets more accurately than their quarterly counterpart.

‘Rolling spread’ and ‘daily cash’ betting contracts do pose a problem for traders as you could easily become confused about the exact losses and profits generated. To counter this problem, you will need to inspect your account on a regular basis.

3.   Trading Platforms

As already stated, the browser-based, online platform provided by FinancialSpreads is based on the technology devised and thoroughly tested by its parent company, the London Capital Group. This tool is relatively new as it was only launched recently. One of its main innovative features is called ‘Tear-off’ which enables clients to customize the layout and appearance of the platform to match their specific needs. For example, they can divide their trading charts into sectors portraying each pending or active spread bet. In addition, they can set entry criteria for each position; produce a ticket for each one and then wait until their trades are activated.

The platform boosts another exciting function termed ‘Director Deals’ which is generated by Digital Look. This facility enables you to track whether directors are either bullish or bearish. The information can be displayed using a number of different formats, such as last week, field, etc. Many experts assess that this tool is an attempt by FinancialSpreads to exploit the extensive advantages of social media.

The trading platform also enables you to limit your risk exposure whenever you initiate new spread bets by implementing guaranteed stop-losses. Although this platform may not be as sophisticated as those of other rivals, it is considered to be ideal for novices as they can be trading within a very short time after registering and opening an account with FinancialSpreads. Excellent customer support is provided, which is available around the clock from Monday to Friday.

4.   Bonuses and Key Features

This broker is presently not promoting any incentives or bonuses to attract new custom or reward customer loyalty.

5.   Educational Facilities

FinancialSpreads has only a limited learning center which is restricted to just a downloadable ‘Beginners Guide’ on financial spread betting available on its website. However, this document requires that users must have already amassed a certain level of spread betting knowledge in order to fully comprehend its contents.

6.   Strengths & Weaknesses

6.1        Strengths

The trading platform, technical tools and facilities offered by FinancialSpreads are easy-to-learn and operate. As this broker has the full backing of the powerful London Capital Group, it is predicted to expand its reputation dramatically within the spread betting industry over the next few years. The company is expected to target significant voids in this market sector that its competitors have so far failed to exploit. One of the firm’s primary objectives is to cater for the needs of novices by helping them evolve their skills to match those of professional traders.

Another important plus of FinancialSpreads is its very low deposit of just £30 required to open a new account and commence trading. This amount is one of the lowest in the spread betting market. In addition, you can execute a spread bet by wagering a minimum of just £1 per point, which again is highly competitive. The trading platform supports important tools enabling you to minimize your risk exposure, such as money management strategies and guaranteed stop-losses. This broker also allows you open a free demo account so that you can perfect your spread betting skills by risking no capital of your own. Here is a summary of the main strengths of FinancialSpreads:

–       Supports wide choice of assets in numerous markets

–       Profit on rising and falling markets

–       Imposes no broker fees or commissions.

–       Services totally interactive on-line trading

–       Provides impressive tools capable of suppressing your risk exposure

–       Requires very low initial deposit

–       Open trades by investing a very low amount

–       Provides free high quality research information on a regular basis

6.2        Weaknesses

This broker only enables you to trade during weekdays and weekends. As such, if you prefer to speculate on the financial markets over the weekend then FinancialSpreads may not be your ideal broker as there are many other choices available that permit you to undertake such an activity. The learning center also needs to be enhanced although apparently such improvements are already in the pipeline.

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7.   Summary

This broker focuses on servicing the needs of novice traders by offering contract types that incur minimum margin costs. The trading platform offered is exceptionally user-friendly and boosts a number of impressive and innovative features. FinancialSpreads goes the extra length to appeal to beginners by supporting both a minimum deposit size and a very low stake amount. As this broker is backed by a major parental company, it possesses the resources to not only stay the course but to enhance its status so that it could well become a leading provider of spread betting services in the imminent future.  Consequently, FinancialSpreads is definitely worth your consideration, especially is you are a novice.

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