Choice is usually a good thing; but it can become overwhelming. A good example is the fast growing world of spread betting. With so many brokers offering an online trading platform, which one do you choose? Here are three criteria to help you whittle down the list.
Spreads
The truth is there is often not much between the biggest providers on this score the competition for business tends to mean that bid to offer spreads are pretty similar particularly on popular equity or currency positions. So always be wary of bold claims made in adverts that appear to undercut the competition you need to find out exactly what the deal is.
Also, as Jamie Blake of Capital Spreads comments in CityAM, there can be a difference between the price quoted on screen and the price you trade at. Ideally, the two should be the same. So always be on the look out for a purely indicative price and "find out if you're going to be regularly re-quoted". Also find out whether the spread quoted is fixed or variable and what kind of change you can expect to see should the market suddenly turn volatile.
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Access
Most spread betters want to be able to access their spread betting platform from anywhere and on any device. It's also important to be able to trade when you want. Check both with your spread betting provider before signing up.
Tools
Make sure that your provider offers what you want - ideally, free of charge. Decent charting tools, for example, are important and should be simple to use. If you can't work out how to use a tool fairly easily, then there's something wrong with it, not you!
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