Financial Spreads Review

Losses can exceed deposits


Key Benefits

  • check_boxSimple user-friendly platform
  • check_boxTight fixed spreads
  • check_boxEstablished in 2007
  • check_boxFinancial Conduct Authority regulated (and fairly rare in that they’ve not been fined by the FCA)
  • check_boxGood range of markets – over 1,000 markets
  • check_box24 hour trading on popular markets e.g. FTSE 100, EUR/USD, Wall St and gold
  • check_boxClient Offer(s)
  • check_boxGuaranteed Stop orders fees are only charged if the Stop is used
  • check_boxSpread betting, CFDs and forex from the same account

Financial Spreads Key Negatives

  • cancelNo MT4
  • cancelAs with all spread betting, CFDs and forex, you can lose more than you deposit

User-Friendly Platforms

User-Friendly Platforms


Established 2007… FinancialSpreads is no longer the new kid

However, they have stayed true to their roots and seem to pride themselves on offering tight fixed spreads i.e. giving a lower cost service to their clients.

Spread betting companies all vary in one way or another but Financial Spreads appears to have most of the key areas covered.

The web-platform has been kept simple and user-friendly, that makes a good place for a lot of investors. If you want the MT4 platform you will need to look elsewhere.

Of course, as with all spread betting companies there are a few niggles (see below).


Low Trading Costs: Spreads, Commissions and Charges

  • arrow_forwardThey do not charge a commission to open/close a trade
  • arrow_forwardThey do not charge you for having a dormant account (not using your account)
  • arrow_forwardThe Guaranteed Stop costs are some of the lowest in the industry (see below)
  • arrow_forwardThe spreads are very competitive, tight and fixed (not variable) e.g. 0.7 on EURUSD and 0.8 for USD/JPY, EUR/GBP, AUD/USD, FTSE 100 and CAC 40 (France 40)
  • arrow_forwardTheir overnight financing charges are fairly industry standard and reasonable.

    If you keep a ‘rolling’ spread bet or CFD open overnight then, like any firm, you are charged an overnight financing fee.

    Financial Spreads charge you a nightly interest rate on your open trades @ (base rate + 2.5%) / 365. That’s a pretty fair rate and far better than you can get with most banks.

Client Offers

They run regular spread betting offers for both new and existing clients.

See Financial Spreads for their latest trading offer.


Financial Spreads Apps

Mobile and Tablet Apps

Financial Spreads have spread betting and CFD apps for iPhone, iPad and Android devices.

The apps are OK but like all mobile apps the charts can be fiddly. Having said that, the charts don’t seem to be a slow as the charts on apps with some of the other firms. But they aren’t that fast either.

Updating and creating ‘Watch Lists’ on the app is slow and annoying. However, it’s quick to create them on the web platform, i.e. just set up your Watch Lists on the web platform and they will sync to the web platform.


Charts

The charts are ‘OK’ but could be improved, or switched back to their old charting software, they take a little while to get used to.

Having said that, to help with your technical analysis, the new charts come with a lot more pre-set indictors and overlays.

Financial Spreads Chart


Markets

Financial Spreads offer their clients a good range of products, and as with most spread betting and CFD companies, these include:
  • arrow_forwardStock Market Indices e.g. FTSE 100 (UK 100), US 30 (Dow Jones), Dax 30 (Germany 30) etc.
  • arrow_forwardForex e.g. EUR/USD, EUR/GBP, USD/JPY, GBP/USD etc.
  • arrow_forwardShares e.g. UK and US shares as well as the 50 shares in the Euro Stoxx
  • arrow_forwardCommodities e.g. Brent and US crude oil as well as gold and silver
They no longer offer shares listed in India, Scandinavia or South Africa. Likewise they no longer off bonds and interest rates or the more exotic commodities like Lean Hogs, Cotton and Orange Juice. That’s no real loss for 99% of spread bettors.

It must be tempting to get the bonds and interest rates back because these markets are talked about a lot in the press.

However, you can understand why FinancialSpreads, and a number of other firms, have dropped them.

The data/price feeds are expensive and spread bettors don’t trades treasuries because these markets move so little.

If you are looking for exotic markets, you are better off trying CMC Markets and IG. Although, as with all exotic markets, or even the ‘less popular’ markets, watch out for wide spreads.

Also, with some of these low liquidity markets, markets gaps that ignore your Stop Loss are far more likely. Please be careful.


Free Demo / Practice Account

They offer a useful demo account that closely resemblances their main platform. It looks the same, has the same markets, has same spread betting and trading CFD trading options etc. so far so good.

The minor negative is that all trades will be treated automatically, the gents on the trading floor don’t have time to review any 50/50 demo trades. I.e. you won’t get a good idea of when trades or orders get rejected or passed to a dealer but that’s the same with any Demo account.

Overall the demo account is a free and useful place to give the platform a quick test. It’s also a good place to test any trading orders that you are not used to.

Unusually, they let you have a demo account and a live account concurrently (same login). This is very useful if you are logged in and want to give a particular function a real test but don’t want to risk any real money.


Financial Spreads vs Finspreads

Don’t be confused, these are two different providers and easily found at “Financial Spreads” and “Finspreads”. Both have a simple straightforward offering.


Positive Risk Management

  1. They automatically add Stop Loss orders to all new trades. We think this is a good thing but remember that Stop Loss orders are not guaranteed.

    If you prefer to ‘trade on margin’ like you do with most brokers, i.e. not have Stop Loss orders put on all new trades, just email their Customer Support team to opt-out.

  2. In 2016 they made a big improvement to their Guaranteed Stops (and the rest of the industry should follow suit).

    In short, you can put a Guaranteed Stop on a trade but you are only charged if your Guaranteed Stop is triggered.

    So if you add a Guaranteed Stop to a trade you are not charged if you close your trade, if you remove the Guaranteed Stop, if your trade hits a Limit (take profit) order first etc.

    Note that IG also offer this but IG can be restrictive e.g. you can’t add a Guaranteed Stops to an existing trade etc. (to get around that with IG you could close your trade and open a new one with a Guaranteed Stop).

    The typical Guaranteed Stops fees with Financial Spreads are quite low by industry standards, e.g. 3x your stake for stock indices, most forex and crude oil markets; 5x your stake for metals; and x0.3% for UK and US shares and x0.5% for European shares.

  3. Leverage varies is typically around x100 to x200 depending upon the market.

    E.g. the FTSE 100 and EUR/USD are both x200. The Spain 35 is x133. Some markets might only be x50 e.g. Hong Kong Futures or EUR/HUF.

    Note that you can get more leverage elsewhere but this is not necessary.

    Leverage = high risk. If you get x100 or x200 leverage, that is more than enough.

    I’d be very wary of any where offer trading with x300, x400 or even x500 leverage. Those levels of leverage are asking for trouble.

Good Stake Size Management

  • arrow_forwardThe platform default is a stake of £1/pt (or $1 or €)
  • arrow_forwardYou can trade of £0.50/pt (that’s still too large for US stocks though)
  • arrow_forwardYou can quickly set your own default stake size on a market-by-market basis via the trade tickets

About Financial Spreads

  • arrow_forwardEstablished 2007
  • arrow_forwardRegulated by the Financial Conduct Authority (FCA)
  • arrow_forwardClient funds are ring-fenced from the company’s money
  • arrow_forwardClients funds are covered by the Financial Services Compensation Scheme (up to a max £85k)
  • arrow_forwardFinancial Spreads used to be trading name of London Capital Group, from 2007 to 2015. Since 2015 it’s been a trading name / working with Finsa Europe
  • arrow_forwardThe Financial Spreads brand is a bit rare in that they’ve not been fined by the FCA
Losses can exceed deposits

Contact Financial Spreads

Phone: +44 (0) 203 301 0483

Address:
Financial Spreads
Office 701
Tower Bridge Business Centre
46-48 East Smithfield
London
E1W 1AW
United Kingdom

Financial Spreads is a trading name of Clear Investor Ltd. which is an appointed representative of FINSA Europe Ltd., company no: 07073413. FINSA Europe Ltd. is authorised and regulated by the Financial Conduct Authority, registered number 525164.


Spread betting, CFDs and margined forex trading are leveraged products which carry a high level of risk to your capital. You can lose more than your initial deposit so you should ensure spread betting, CFDs and margined forex meet your investment objectives and, if necessary, seek independent advice.

AuthorAlex Turner

Senior Editor, SpreadBetMagazine

3 thoughts on “Financial Spreads Review

  1. Financial Spreads are known for tight spreads (low cost trading) but as with all firms if you start trading the less popular markets then the spreads quickly widen.

    E.g. euro/dollar has a competitive fixed spread of 0.7pts 24hr/day. Nice.

    However, pound/South African rand has a spread of 20pts during normal market hours and 30pts outside normal market hours.

    Dollar/Hungarian Forint is 20 points (and a whopping 50 points outside normal market hours).

    Then again, does anyone actually trade GBP/ZAR or USD/HUF these markets?

  2. App Watchlist Issue Finally Fixed!

    They’ve finally fixed their annoying issue with ‘Favourites’ on the app and ‘Watchlists’ on the web platform.

    Firstly, it doesn’t matter which company’s mobile app you use, setting up your Favourites or Watchlists, i.e. a list(s) of your favourite markets, is always slower on the app than the web platform.

    Secondly, Financial Spreads somehow separated ‘Favourites’ on the app and ‘Watchlists’ on the web platform, i.e. you had to set up your lists twice and they didn’t synchronise.

    This is very annoying. Or rather, this ‘was’ very annoying.

    There is now just one watchlist and it synchronises on both platforms. It works nicely and makes the app much better.

    Adding markets to the watchlists on the app is still annoying, just set them up via the website which is pretty painless.

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