Capital Spreads has tighter spreads on most products but this is only very important to high frequency traders. If you use spread betting as a tax efficient way to hold shares then the spread isn’t that important. You may have say a dozen stocks you hold and roll them over once every 6 months giving you 20-30 trades a year.
Negatives of Capital Spreads -:
- Capital Spreads website can be slow to load, which can be very annoying.
- Capital Spreads have a tendency to freeze and lag.
- Capital Spreads website is ugly and doesn’t look as professional as IG Index.
- Capital Spreads does not offer as many products to trade.
- Capital Spreads often re-quotes prices saying the market has moved, I haven’t had that with IG yet. Not sure why CapitalSpreads does this, is it the ping to the server? Is it their tighter spreads? Not sure but it is annoying and sometimes exasperating to the point to almost make you want to leave it and go to the higher spread IG Index that doesn’t re quote as often.
As I said CapitalSpreads have tighter spreads and it is definitely a good thing to be cheaper than IGIndex. Looking at IG Index – they charge you 2 pips to trade the FTSE while Capital Spreads charges you only 1 – that’s double the spread!! Their spreads are much more competitive on shares too.
However, having said that service and quality of the trading website are important as well and there IG has the edge. I’m sure that if Capital Spreads can improve their website to match that of IGIndex then they could steal a lot of business away from IG index.
Another important part of a growing industry like spread betting is the need to advertise. As far as I can see Capital Spreads doesn’t advertise much at all while IGIndex does.
However, Capital Spreads use a different (and probably a much more cost-effective strategy) their offering – they use partners like Tradefair, PaddyPower, etrade, Saxobank…etc to acquire the customers for them. Although, I’m seeing lately that Capital Spreads are becoming more aggressive – they are advertising on ADVFN and newsletter insertions.
One thing is for sure Capital Spreads is already bigger now than some other spread betting providers who have been in the industry for over 25 years and that’s a remarkable achievement.
I review spread betting sites like IG Index, ETX Capital and CapitalSpreads so you know which sites offer the best experience for you to spread bet at.
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Spread Betting Market Commentary: FTSE charges higher after company earnings and broker actions lift optimism
Wednesday, April 20th, 2011Financial spread betting and CFD trading expert Joshua Raymond of City Index (http://www.cityindex.co.uk/) takes a look at the EU markets as the FTSE charges higher on 11th January.
“A combination of positive factors including company earnings, broker recommendations and bid speculation has helped to encourage investors to buy into equities today, pushing the FTSE 100 higher by 1% and back above the 6000 level once again.
There are a lot of positive catalysts to today’s markets that is helping to boost optimism that the last few days of losses were more about profit taking than a change in sentiment. The fact that the FTSE 100 has quickly regained the 6000 level once more raises confidence that the recent bull trend could continue, particularly if the UK Index can consistently maintain above the 6050 level.
Alcoa’s numbers brighten hopes for a good Q4 Earnings from US miner Alcoa, which beat markets expectations, has boosted hopes for a strong earnings season and this has helped to encourage higher risk appetite in some of the key miners this morning. A stronger Copper price, which has shunned the stronger dollar, has also helped to facilitate buyer demand for mining shares.
That said, investors are likely to want to see earnings from tech bellwether Intel and bank JP Morgan later in the week before buying into an outperforming US earnings season.
ARM jumps another 6% Bid talk continues to lift the market with shares of ARM Holdings this time taking flight to lead the FTSE 100 winners list, jumping 6%. Bid talk has surrounded the chip designer for some time now with Apple, Intel and Microsoft being widely speculated by some of the UK press. We have seen high investor interest in ARM’s shares since the announced Microsoft deal, both in terms of what the deal could bring ARM but also how its rivals may react.
CSR shares leap on patent settlement CSR shares leapt 13.5% on Tuesday after the chipmaker settled a legal battle over patents with US rival Broadcom. The settlement figure comes in at .5m, which will be paid over the next 5 years, and will be offset by a reduction in legal costs of at least m. Some analysts have also predicted the settlement could result in a 10% jump in both operating profit and EPS.
The patent legal issue had created a cloud of uncertainty over the firm, and this has kept its shares pinned down of late whilst rival chip makers such as ARM have enjoyed a good run. Investors clearly are taking the settlement as drawing a line in the sand and this has helped to free up strong buyer demand for its shares.”
You can help to keep your spread betting skills sharp with a free demo spread betting account at City Index. Visit http://www.cityindex.co.uk/learn-to-trade/demo-account.aspx for details.
About City Index:
Today more and more individual traders are discovering the benefits of derivatives, and many of them are discovering them through a City Index trading platform.
As a group, we transact in excess of 1.5 million trades every month for individuals in over 50 countries worldwide. We provide access to a wide range of instruments including margined foreign exchange, binary betting, CFDs and, in the UK, spread betting.
We constantly look to widen the range of assets we offer, improve the performance of our spread betting and CFD trading platforms and expand the range of services we provide. The result is that our customers benefit from innovative trading tools with transparent pricing, competitive spreads, and a high standard of customer service and support.
Spread betting and CFD trading are leveraged products which can result in losses greater than your initial deposit. Ensure you fully understand the risks.
For more information, visit http://www.cityindex.co.uk/.
Article from articlesbase.com
Markets remain quiet on US bank holiday.
Technorati Tags: actions, after, betting, Broker, charges, Commentary, Company, earnings, FTSE, higher, lift, market, optimism, spread
Tags: actions, after, betting, Broker, charges, Commentary, Company, earnings, FTSE, higher, lift, market, optimism, spread
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