I have too many spread betting accounts although only trade small positions in all of them. Finspreads was founded in 1999, and was subsequently acquired by IFX Group in 2002, with IFX then acquired itself by City Index in 2006.
UPDATE JANUARY 2015: WE DO NOT PARTICULARLY RECOMMEND FINSPREADS AT THIS TIME. FOR SPREAD BETTING USE ANY OF THE FOLLOWING. ALL THREE OF THEM ARE GOOD PROVIDERS TO DEAL WITH:
History
Finspreads has a long history and has changed hands three times till now. First it was created by Sporting Index in 1999, who later sold it to the IFX Group. City Index then purchased IFX Markets in 2006 which brought Finspreads under their control. City Index Holdings Limited now owns both Finspreads as well as City Index. Finspreads now runs the same systems and processes as City Index, with whom they share all resources including office space.
Finspreads used to get a lot of bad press on forums about platform instabilities but I have to say that their platform does offer a starting ground for newbies.
Finspreads offer an eight week start up period when you can use really small spread betting stakes (like 10p per point). I found this a great way of testing out different approaches without risking anything really. It means you can trade from a business perspective rather than a ‘OMG what happens if I lose my pot’ perspective. In this respect, if you only have very limited funds, Finspreads is probably the best for your capital as their minimum trade is 50p per point, IG and Capital are £1. Also offers a CFD trading service. Having said that if you are betting with just 10p per point, in my opinion, you might want to open a trading account with at least 100 pounds in it, just so that you should be able to give yourself a fair chance of profiting, while covering any adverse movements in the markets.
Background: Finspreads was launched 19th April 1999. In Feb 2001 launched the FIRST fully interactive online spread betting platform. In may 2002 IFX group PLC purchased Finspreads, IFX is fully listed on the LSE and is authorized and regulated by the FSA. In November 2003 launched new look online platform. In November 2004 an advanced order system was launched and in 2006 CityIndex acquired IFX, the parent company of Finspreads.
Tradable markets: Wide range of markets includes top US, UK, European, Asia and international stocks and indices. Currencies, Commodities, Sectors and Bonds and Interest rates. Options also available over the phone.
All FTSE 100 and FTSE 250 companies are quoted plus a number of other liquid UK shares with a market cap exceeding £50m. For USA markets, price are quoted on over 500 USA shares, including Dow Jones, Nasdaq 100 and S&P 500 index constituents. They also quote a number of leading companies quoted Germany, Holland, Italy, Spain, France and Switzerland, plus larger companies from other European markets.
Features of Trading Platform
Finspreads shares the same trading platform with City Index. It’s a web based application that runs on flash. The screen consists of four sections showing the markets and individual items, the total account summary, the trading box and the news and messages area. It’s very easy to drill down to the type of market you want to look at and there are sections for each country as well as alphabet categorization. Opening and closing a spread bet is easy and just takes a few clicks with the intuitive interface. Entering a stop loss order is simple ,as is entering a limit order to lock in your profits.
Seminars on spread betting available: Introduction to spread betting and technical analysis seminars offered regularly in London.
Guides on spread betting available: Finspreads Trading Academy. Comprehensive spread betting guide. You also get to trade from as little as 10p per point if you sign up.
Minimum stake & deposit: Stake sizes starting from 10p per point for an 8-week introduction period while knowledge of financial spread betting and confidence with the Finspreads trading platform is developed. Min stake 50p. Min deposit £100.
Credit spread betting accounts available?: Spread betting credit accounts not currently available.
Limited risk spread betting account available?: Yes. Three different account are offered. A beginners account will allow you to start trading at stakes for just 10p per point although this restricts you on the range of markets you can trade. Experienced traders can open a standard account which allows you to trade from 50p per point on a wider range of markets than what is available on a beginners account. For the risk-averse there are also Limited Risk accounts which come with guaranteed stops on all positions meaning that clients can never lose an amount in excess of the initial deposit.
Another positive thought – the road to riches may be longer if you start with a smaller pot but it means that you build up slowly and therefore risk less capital as you go along – I certainly made some huge mistakes in my first six months (I think most people do) but with a smaller pot you will lose less (very little in fact, if you stick to all the good pointers given by the good folk on this thread) and meanwhile build up your knowledge and confidence, gradually increasing your stake size over time.
“Finspreads is very much suited if you are a beginner because most of their minimum trades are 50p whereas IG’s are £1-£2 and that’s usually far too much. If you want to have any chance of success with the spread betting companies then for the first 6 months ONLY TRADE THE MINIMUM AMOUNT. Finspreads also offers 10p for the first 2 months and that’s perfect. Trade more and you run the real risk of blowing a major proportion of your account while you’re learning so when you sort of know enough you won’t have any cash left, or will need to make in excess of 100% to get back to where you started. There are no minor leagues with trading, you start playing with the big boys on day 1, traders who have taken years to perfect their game. Good luck, play safe and small and you’ve got a chance.”
UPDATE JANUARY 2015: WE DO NOT PARTICULARLY RECOMMEND FINSPREADS AT THIS TIME. FOR SPREAD BETTING USE ANY OF THE FOLLOWING. ALL THREE OF THEM ARE GOOD PROVIDERS TO DEAL WITH: