Is spread betting for me?

Spread betting can be fast-paced, fun and a great way to make money. But opnlyt for a certain type of investor. Tim Bennett points out a few things to consider before deciding if spread betting is your thing or not.

Tempted by spread betting? For the right sort of investor, spread betting can be fast-paced, fun and a great way to make money. However before you take the plunge, ask yourself the following questions. They will help you decide whether it's really for you.

What is your strategy? Spread betting isn't like buying and selling shares as an investor. The time horizon is much shorter it's often minutes or hours for a spread better compared to months - or more likely years - for a share investor. So if you are the kind of person who likes to invest periodically and then sit back and wait for time to generate decent long-term returns, spread betting may not be your bag. It's not just an extension of share trading it's a different way of investing.

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Tim graduated with a history degree from Cambridge University in 1989 and, after a year of travelling, joined the financial services firm Ernst and Young in 1990, qualifying as a chartered accountant in 1994.

He then moved into financial markets training, designing and running a variety of courses at graduate level and beyond for a range of organisations including the Securities and Investment Institute and UBS. He joined MoneyWeek in 2007.