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Spread Betting

Spread Betting is a fairly recently invented alternative to your traditional trading account. Typically only available in the UK and Europe, it currently has tax and margin advantages that make it attractive to beginning traders. A Spread Betting account can be opened with as little as $750, a far cry from the $25,000 or so needed for a fully fledged day trading brokerage account, as it is outside the scope of the new SEC rules. The principle upon which they operate is that the spread betting company offers you a 'spread' at which you can buy or sell, and that is how they make their money, instead of charging you a fixed or flat commission. If you operate a LARGE spread betting account, you can often negotiate individual terms making it as cost effective as a deep discount broker. The best spread betting firm is CityIndex