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Financial Spread Betting

  • 18-04-2007 3:15pm
    #1
    dos30
    Registered Users, Registered Users 2 Posts: 376 ✭✭


    I was planning on investing in Shares and was researching the different brokers when I came across Financial Spread Betting.

    It seems to me to be similar to buying shares except without the excess charges like Annual fees, commission and tax.

    The only thing you pay for is the Spread.

    I have come across 2 Irish companies that do it.

    www.worldspreads.ie and https://www.deltaindex.eu/Home/Web/

    I'm just wondering if anyone has any experience with this kind of trading and with either of these companies.


Comments

  • #2
    jackbhoy
    Registered Users, Registered Users 2 Posts: 1,280 ✭✭✭jackbhoy


    Its not something you should get into lightly, do your research & make sure you calculate and provide for potential losses. Unlike other forms of betting you can actually lose many multiples of you initial stake.


  • #3
    Kristopherus
    Registered Users, Registered Users 2 Posts: 11,907 ✭✭✭✭Kristopherus


    As Jackbhoy says tread very carefully. If you don't know, don't go.


  • #4
    A Random Walk
    Closed Accounts Posts: 346 ✭✭A Random Walk


    Others will disagree, but I don't consider spread betting to be investing. Investing (to me) is a long term activity, you invest in companies (or funds) you want to own a part of and you remain invested in that company long term. Spread betting is akin to gambling, in that you are betting on short term movements of a share price.


  • #5
    PDelux
    Closed Accounts Posts: 296 ✭✭PDelux


    I suppose it depends on terminology but i agree with RandomWalk that investing implies long term, whereas trading would imply short term.
    I see investing, in general, as gambling though because you are betting that the share(or other investment) price will rise, and you have no way of knowing that it will.
    The best way to protect your money and minimise your losses is to have a stop placed at a certain point so it will trigger a sell if the price falls. This way your max loss is a fixed amount(within reason due to gap downs etc.).
    Spread betting is the same because you enter the trade betting that the share price will rise or fall and place a stop at a point where if the movement goes against you, you can bail out. This is standard trading whether you use a stock broker or a spreadbetting firm.

    A bad thing IMO about the Irish financial spreadbetting firms is that they do not have enough shares to bet on.


  • #6
    merc998
    Closed Accounts Posts: 47 ✭merc998


    Im spread betting a while now i fully enjoy it i always set my stop/loss so i never have to worry about losing and profits are really good id recommend any1 to do it!!


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