Spread betting firms manage the bets spread bettors make via their online system and award profits or collect losses. The fees of spread firms are built into each spread so the more investors they have making bets with them, the more money they make.
There are so many spread betting firms that many are vying for the business of spread bettors. Therefore, firms are offering many incentives for individuals becoming account holders.
Not only do these spread betting firms offer tight spreads, but some are offering guaranteed stop losses on all trades. This is especially beneficial for beginner spread bettors as these will minimise one’s losses.
Another incentive being offered by spread betting firms is capital matching. Several firms are offering to match an initial deposit of 10% of the investor’s contribution. Therefore, if a trader deposits £1000 a match of £100 is made on behalf of the firm. This match incentive is limited to new account holders.
Other spread betting firms offer a certain amount of free trading money. Amounts vary from company to company, but typically are around £150.
Spread betting firms have to be competitive to earn the trust and business of betting investors as there is a large amount of spread betting firms.