Know Your Spread Betting Broker Before Trading

Online, April 2, 2012 (Newswire.com) - Online spread betting broker review site IndependentInvestor.co.uk has urged traders to invest more time and energy in researching different brokers, in order to save them more money on an ongoing basis while avoiding the pitfalls of incompetent or rogue brokers.

With the market for spread betting providers now more competitive than ever, IndependentInvestor.co.uk suggested that traders should look increasingly to exploit this situation in return for a better trading experience at a lower cost, and recommended traders get to know their potential broker before trading.

Brokers charge trading costs on financial spread betting in the form of the spread offered between buy and sell prices, which is multiplied by the stake to give the broker's share. By looking for a lower cost broker, traders can save significant multiples of their stake over the long-term, and present less of a handicap to future earnings than more broker-generous spreads.

A spokesperson from IndependentInvestor.co.uk said getting to a stage where you know a broker and their service inside out before signing up was of paramount importance in making the right decision overall.

"Getting to know your broker before you start trading with them is crucially important in making sure you've made the right choice. Traders who don't take the time and energy necessary to research their broker choices before jumping in often live to regret it, and it's hard to emphasise enough the importance of getting the decision right for those that haven't previously had a negative brokerage experience. If you're a trader who is looking to become successful in a legitimate, honest and fairly priced framework, you're going to need to put in the legwork behind the scenes in order to become more familiar with the broker choice you are potentially making."

"To say all brokers are pretty much the same is a gross underestimation of the differences there can be. For example, even a fractional difference in commission or spreads between brokers can result in a huge cost differential over time, and indeed the more you trade, the more you need to deal with every growing marginal costs. That's why it's vitally important that you spend enough time analysing broker reviews and other traders' experiences before making the call for yourself."

IndependentInvestor.co.uk provides broker reviews and comparisons designed to help spread betting traders research and compare different providers before signing up.

About:
IndependentInvestor.co.uk is the Internet's most prominent financial broker review site, compiling in-depth reviews and analysis of the service on offer from a broad cross-section of the market. Covering brokers in spread betting, CFDs, share dealing and beyond, IndependentInvestor.co.uk is amongst the most comprehensive review sites available for traders looking to find the best deal.

To add to broker reviews, IndependentInvestor.co.uk offers free trading resources, blueprints and strategies, aimed at helping supplement the knowledge or new or inexperienced financial traders across different trading disciplines.