Losses can exceed deposits
Financial Spreads Key Negatives
Established 2007… FinancialSpreads is no longer the new kidHowever, 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
Client Offers and RebatesThey run regular spread betting offers for both new and existing clients.
See Financial Spreads for their latest trading offer.
Also see Financial Spreads rebates for spread betting, forex and CFDs
Mobile and Tablet AppsFinancial 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.
ChartsThe 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.
MarketsFinancial Spreads offer their clients a good range of products, and as with most spread betting and CFD companies, these include: 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 AccountThey 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 FinspreadsDon’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
- 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.
- 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.
- 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
About Financial Spreads
Losses can exceed deposits
Contact Financial SpreadsPhone: +44 (0) 203 301 0483
Tower Bridge Business Centre
46-48 East Smithfield
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.