When traders begin to venture into the world of spread betting, there are some key factors to consider before placing any trades with your hard-earned money. Some of these include: markets available for trading, educational services, low trading costs, free market research and charting packages, and attentive customer support.
Here we will look at all of these issues to see why they are important for new traders. They will affect your choice of spread betting provider and your style of trading, and taken together they will help you to conduct a successful approach to trading on a regular basis.
The first important question is the type of market (asset class) you will be monitoring as a trader. There are a wide range of markets available including stocks, indices, hard and soft commodities and currencies. Many traders will trade in multiple categories but, for the most part, a large majority will focus on one or two of these asset areas for their regular trades.
By targeting asset classes that suit your trading style you can gain a deeper understanding of the newest developments and spot trading opportunities as they arise. As a new trader you should ensure your spread betting provider offers reliable access to the markets you want to trade. If this is not the case you may find yourself trading in areas where you lack knowledge and confidence, which can prove costly.
As a new trader you should be looking for the best educational resources. A rounded trading education will include both the technical and fundamental forms of market analysis, an understanding of trading strategies, and a grounding in trade planning and money management.
A good spread betting provider will normally offer a wide range of free educational content in the form of courses and webinars. Take the time to use these resources as this information may prove invaluable for your trading. More: Trader Education from InterTrader.
Trading costs are another critical factor, as spread costs can eat into your long-term profits. Spread betting providers that charge commissions should be avoided and traders should always be looking for tight spreads, even in volatile market conditions.
As technical chart analysis becomes more and more popular, a large number of traders find themselves in need of reliable charting packages equipped for beginners and advanced traders alike. Even if you do not consider yourself to be a chart technician at the moment, you should bear in mind that powerful technical indicators and backtesting routines may help you discern more trading opportunities as you become more experienced. More: advanced trading charts from InterTrader.
Finally, you should make sure that you have access to customer support that is both knowledgeable and attentive. This can prove to be invaluable, say if you find yourself in a trade that requires adjustment or you have an enquiry about your spread betting account activity. Make sure that you can always contact a customer service team with extensive experience in the markets in order to avoid getting incorrect or outdated information.