If you are looking for a new spread betting company to trade with and would like to take advantage of some free cash when doing so, then we have compiled a list of all the current bonuses on the market.
Although most spread betting companies don’t offer bonuses in the same way that casinos and sports betting companies do, a few of them do offer promotions when clients sign up. Below you will find the most reputable firms that currently have spread betting offers available.
Intertrader is one of the most trusted names in the world of spread betting and is co-owned by Bwin.Party and the experienced trading company, London Capital Group. It’s spreads are very competitive and it also gives clients cashback each and every month, to the tune of 10% of the their spread costs. Intertrader is the only company to do this.
All new clients that sign up with Intertrader, can currently take advantage of its £5000 bonus offer. Simply sign up for an account here, and you will receive a bonus worth 10% of the total amount you deposit within ten days.
Another popular London based company, ETX Capital has been in the spread betting game for many years. It prides itself on offering the best service to its clients along with spreads that are very competitive. The trading platform itself is very slick and you can place bets with just a couple of clicks of a buttons. It also offers clients a demo account so that they can get used to the layout and functionality without risking any money.
The spread betting offer at ETX Capital comes in the form of a safety net – if you lose money after 10 days of opening your account, ETX Capital will refund you up to £500.
What is spread betting?
There are two different types of spread betting: financial spread betting, and sports spread betting. Although they are both similar, there are some distinctions between the two.
To avoid any confusion, this short guide is mainly concerned with financial spread betting.
Financial spread betting allows people to speculate on the future price movements of financial assets. By financial assets, we mean anything from Gold and silver, to share and indices.
If you think the price of BP shares is going down, you can bet on this outcome. The concept is best explained using a quick example:
Spread Betting Example
Mr H thinks the price of BP shares is going to go down from its current level (450p). He places a spread bet worth £10 per point that the price will do so.
The share price does in fact go down, and Mr H closes the bet at 430, which means he has made a profit of £200 (450-430 x £10 per point).
The above example doesn’t take account of the spread betting firm’s spread, but for anyone that is new to trading, it is easier to ignore this, for now
Spread betting is a worthy alternative to purchasing assets, such as company shares outright, as it has a number of benefits associated with it. First of all, any profit you make is treated as money won from gambling, and therefore isn’t subject to capital gains tax – nor will you pay stamp duty when trading. This in itself is one of the main reasons many people spread bet.
Another advantage to spread betting is that you are able to trade on leverage. With most bets you place, you will be given margin, which essentially means you only pay a small deposit to open the bet. This allows spread bettors to win far higher sums of money although, conversely, large losses can also be incurred very quickly.
Another handy feature of spread betting is that you can bet on the price of assets going up, as well as down. Unlike with share dealing, you are therefore able to make money betting on a share price falling (in the event of say, negative company news).