Spread betting platforms for students

[Ugas]

I heard that when you want to open a spread betting account on several platforms (IG, City Index) that you need to have a minimum salary of £14.000

Is this true? I have a salary of £0 as I'm a student - the money I do get in is around £6000 (student finance). So should I put that as a replacement of "salary" (if they accept anything under 14.000)

Cheers for your help guys. 🙂

 

[timsk]

I heard that when you want to open a spread betting account on several platforms (IG, City Index) that you need to have a minimum salary of £14.000

Is this true? I have a salary of £0 as I'm a student - the money I do get in is around £6000 (student finance). So should I put that as a replacement of "salary" (if they accept anything under 14.000)

Cheers for your help guys. 🙂

Hi Ugas,
Welcome to T2W.

In answer to your question I've highlighted in blue, the answer is an emphatic no! It's highly likely that you'll lose the money which, presumably, you need for your living expenses. If you open an account, just open a demo account and trade paper money - don't under any circumstances trade real money from the get go. If, and it's a massive if, you make paper money consistently over an extended period of time (this depends on the type of trader you are), then consider depositing the smallest amount you can and trading the smallest size that your broker permits.

Broadly speaking, I'd recommend you steer well clear of any type of trading until long after you've finished your studies. Why? Because to be successful at it will require a mammoth amount of your time and effort. That's time and effort which will impact either your studies, social life, or both. While you're student - stick to doing what students are meant to do: working hard (on your course) and partying hard. Sorry if all this isn't what you want to hear - but it's offered with the best of intentions and with your interests very much at heart.
Tim.

 

[Ugas]

Cheers for the answer and advice. I don't plan on using huge amounts of money and it's more like a potentially new hobby which I can get in.

Just to make sure will these websites allow me to open an account? 🙂

 

[timsk]

. . . Just to make sure will these websites allow me to open an account? 🙂

They ask the questions about income, trading experience and appetite for risk etc. because they are required to do so by the FCA and to be seen to be behaving in a responsible way. It's all about protecting their backsides so that should the day come when you lose everything, including your mind, and stroll into the student bar with a AK47 and do a Mark Barton - the broker has nothing to fear when the police come knocking at their door. They can pull out your application form quicker than a very quick quick thing and claim they crossed every 't' and dotted every 'i' to ensure you were a suitable client.

So, in answer to your question, if you admit to being a penniless student with zero trading experience, then their compliance department will - almost certainly - turn you down. Obviously, I can't advise you to tell porkies in order to get an account opened, but I can tell you that you wouldn't be the first and you certainly won't be the last.

That said, as per my last post, I recommend you forget the whole idea while you're a student. Very few traders make any money at all. Of these, 'hobby' traders are a tiny percentage (depending upon one's definition of 'hobby'). The bottom line is: if you want a hobby that eats up money - there are plenty available that are a whole lot more fun than trading. Whatever you do, don't go into it with the expectation of making money. Only go into it if you understand and accept that you probably won't.

Best of luck with your studies!
😉
Tim.