Spreadbetting or trading

[tomhunter]

Hey

I was just woundering as a beginner would it be best to try spreadbetting first before trading. Using the same tech analysis and then using spreadbetting to place trades.

Spreadbetting strikes me as more of a fad like game than trading is this true?

Best Regards
Tom

 

[Jack o'Clubs]

more of a fad like game than trading

What on earth does that mean?

The main advantage of spreadbetting for beginners is that you can start with much smaller stakes than would be practical through a broker. Otherwise the difference is in the nature of your counterpart in the trade, nothing to do with how much of a 'fad' it is.

 

[neil]

Search Facility

Hey

I was just woundering as a beginner would it be best to try spreadbetting first before trading. Using the same tech analysis and then using spreadbetting to place trades.

Spreadbetting strikes me as more of a fad like game than trading is this true?

Best Regards
Tom

TOM
You really must do your own research because unfounded and blatently unresearched statements such as yours show that you have little interest in trading or cannot be bothered to make the effort.
Meet us all halfway and do some research then come back with specifics.
Once again - the "SEARCH FACILITY" covers the subject in great detail - ie: pro's and cons of spreadbetting. 🙄

"WOUNDERING".....you mean "wondering" or even "thinking."

 

[tomhunter]

Lol

I have ive read lots of articles on it and they suggested it grew in popularity in the last few years, and since its provided by bookmakers i guessed it may be less professional and more of an amateur way to trade. (can't seem to phrase what i mean in a way i can't see getting picked apart)

Thanks

 

[FXSCALPER2]

Lol

I have ive read lots of articles on it and they suggested it grew in popularity in the last few years, and since its provided by bookmakers i guessed it may be less professional and more of an amateur way to trade. (can't seem to phrase what i mean in a way i can't see getting picked apart)

Thanks

Spreadbetting is trading. I trade FX, as you can guess, and the vast majority of the time it makes little difference whether you trade direct or with a SB outfit. Some are better than others for a variety of reasons. Nevertheless, take it from me, you are not going make or lose money because of your broker in most cases. You will find different snags with different brokers, but you should be able to work through that fairly easily.

 

[tomhunter]

Thanks FXscalper,

So you analyse the markets the same for both direct access (this is when you buy the currency right) and for when you place a bet with the spreadbetting company.



In repose to the posts above , I was basically trying to ask for the general concensus towards spreadbetting. whoose it best for? etc

Thanks

 

[tomhunter]

TOM
You really must do your own research because unfounded and blatently unresearched statements such as yours show that you have little interest in trading or cannot be bothered to make the effort.
Meet us all halfway and do some research then come back with specifics.
Once again - the "SEARCH FACILITY" covers the subject in great detail - ie: pro's and cons of spreadbetting. 🙄

"WOUNDERING".....you mean "wondering" or even "thinking."

Sorry ive used search and found exactly the sort of threads i needed. But similar to my thoughts BBB suggests that its less professional than trading through direct access. It seems like apart from being good for beginners its good because it can avoid tax.

Thanks

 

[tomhunter]

"WOUNDERING".....you mean "wondering" or even "thinking."

I do apologise english is my 4th language.

Thanks

 

[the blades]

Sorry ive used search and found exactly the sort of threads i needed. But similar to my thoughts BBB suggests that its less professional than trading through direct access. It seems like apart from being good for beginners its good because it can avoid tax.

Thanks

Hello Tom,

The price you will pay when spreadbetting is that many will view what you do as amateurish.

You'll also find that the more times you fill in your tax return with a 40% saving, the less you'll care about how others view it.

Overall, FXSCALPER sums it up nicely above.

Good luck,
UTB

 

[tomhunter]

What on earth does that mean?

The main advantage of spreadbetting for beginners is that you can start with much smaller stakes than would be practical through a broker. Otherwise the difference is in the nature of your counterpart in the trade, nothing to do with how much of a 'fad' it is.

Lol this sort of argument has came up in the past as i found after using the search, you must understand it was hard for me to convey what I was thinking

 

[Jack o'Clubs]

You'll also find that the more times you fill in your tax return with a 40% saving, the less you'll care about how others view it.

I don't disagree that for a guy like you the 40% is rather important. It does make me smile slightly when newbies focus on the tax saving, when the first hurdle is to make the £8,800 in capital gains to make it a problem in the first place!

 

[the blades]

I don't disagree that for a guy like you the 40% is rather important. It does make me smile slightly when newbies focus on the tax saving, when the first hurdle is to make the £8,800 in capital gains to make it a problem in the first place!

aye, too true JOC

UTB

 

[Atilla]

TOM
You really must do your own research because unfounded and blatently unresearched statements such as yours show that you have little interest in trading or cannot be bothered to make the effort.
Meet us all halfway and do some research then come back with specifics.
Once again - the "SEARCH FACILITY" covers the subject in great detail - ie: pro's and cons of spreadbetting. 🙄

"WOUNDERING".....you mean "wondering" or even "thinking."

You have 50/50 chance of getting it right. Why not just short-circuit thinking and go short. Markets really extended anyway. Pick a nice little index like the Nasdaq and do it... Do it... Do it... Do it... !

Better move fast and open your account.

Investors chronicle have a paper trading system with £1000 prize money.

Proof of the pudding is in the digestion and see what comes out of your £10,000... 😀

 

[jonj]

how n where??!!

TOM
You really must do your own research because unfounded and blatently unresearched statements such as yours show that you have little interest in trading or cannot be bothered to make the effort.
Meet us all halfway and do some research then come back with specifics.
Once again - the "SEARCH FACILITY" covers the subject in great detail - ie: pro's and cons of spreadbetting. 🙄

"WOUNDERING".....you mean "wondering" or even "thinking."

Good point but as a newcomer to this site and a newcomer to forex trading where can i get GOOD info,even my local library has nothing much usefull!

 

[tomhunter]

Good point but as a newcomer to this site and a newcomer to forex trading where can i get GOOD info,even my local library has nothing much usefull!

babypips.com

 

[Priceman]

Good point but as a newcomer to this site and a newcomer to forex trading where can i get GOOD info,even my local library has nothing much usefull!

Do you google?

I'll PM you the sites I use

 

[neil]

Search

Good point but as a newcomer to this site and a newcomer to forex trading where can i get GOOD info,even my local library has nothing much usefull!

Use the "SEARCH" facility at the top of this page as well as the"K.Lab" and "Traderpedia"
And
www.forexfactory.com is a forex only site with lots of threads and systems for you to look at.

http://www.forexfactory.com/showthread.php?p=225581#post225581 and "James'" Pin Bars etc.

Good luck 😉

 

[PurplePerson]

In answer to the original question (which didn't identify forex as the field of interest - and which is an area I don't do) - I would say that for a beginner, spreadbetting is an unsafe route. Familiarising onesself with the market behaviour of the product (be it forex, stocks, whatever) is surely best done without throwing in the drama that leverage can create.

For the non-beginner, ie someone already familiar with the product and how it behaves, then yes - spreadbetting has advantages over plain dealing.

I am now into my 10th year of trading shares for a living (UK only. Mainly mid-caps). I began with conventional share trading and still do some, mainly within PEP and ISA accounts. But nowadays the bulk of my gains come from sbetting which I find far more convenient. So much so that I would give up conventional trading altogether now, were it not for the risk that the rules might get changed sometime, making sbetting less advantageous. I would not wish to find myself with no ongoing PEP/ISA investments.

In the first few weeks of 2007 I have banked enough in sbet winnings to live off for about the next 18 months. I could not do that from the same capital base by conventional means. And although using sbets does mean employing risky leverage, the speed with which (prudently selected) positions can generate gains, means I can snap the position closed and stand aside. I don't have to weather all the ups and downs and ongoing worry that can affect a longterm holding.