Look For Reputation When Choosing A Broker

Online, May 22, 2012 (Newswire.com) - Online broker comparison site IndependentInvestor.co.uk has suggested that traders weight reputation as a more considerable factor in choosing a broker, following the collapse of the spread betting broker Worldspreads following allegations of fraud at the City provider.

With over 15,000 clients trading capital through Worldspreads as it went south, financial investors everywhere are reassessing their broker choice, and considering taking on more independent trading accounts to offset broker risk, according to IndependentInvestor.co.uk.

By spreading capital across accounts with different spread betting brokers, traders can benefit from both diversity of risk and the advantage of competing spreads, helping reduce the costs of trading in the process, thus comparing between the brokers you trade through is of central importance.

A spokesperson for IndependentInvestor.co.uk said that while comparing spread betting accounts for the best deal was of fundamental importance, finding brokers with a solid reputation and a healthy balance sheet should be the first step in designing you trading setup.

"Comparing brokers to find the most competitive deal and the tightest spreads is trading 101, and it's probably the first process most traders go through in accessing the markets for the first time. While a point here or there is still very important, it's even more fundamental to make sure that you look for brokers that have a presence in the market and a reputation for integrity and stability, in order to guard against the broker risk inherent in depositing your capital online. While preventing broker collapse can never be a guarantee, finding providers with a better, established reputation is always the first step to looking after your capital."

"While the Worldspreads case shows no-one is immune, the need for finding reputable brokers remains central to starting any successful trading career. Beyond that, comparing different brokers to find the best value remains of crucial importance, but as a preliminary measure ensuring the reputation of your chosen brokers is sound is an effective way to deliver a better prospect of capital security."

About:
IndependentInvestor.co.uk is an online spread betting broker comparison engine, providing spread traders with a central basis for comparing the prices and markets offered across market leading providers. With numerous different, credible brokers at varying ends of the price spectrum, IndependentInvestor.co.uk reviews the market to make it easier for traders to identify the most cost-effective trading solutions for their markets.

Alongside broker reviews and comparisons, IndependentInvestor.co.uk hosts informative resources aimed at helping CFD traders improve their results in the financial markets. From foundational market knowledge to advanced techniques for maximising profit, IndependentInvestor.co.uk is designed to help traders grow their capital through better returns and more effective trading strategy.