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Spread trading (a.k.a. Spread betting is a recent alternative to traditional brokerage accounts for trading. Popularised in the UK and Europe, they avoid regulatory and tax issues usually encountered by traders, and allow one to begin trading with only a fraction of the capital that would normally be required in a standard brokerage account. Spread trading companies make their money from the 'spread' (the difference between the bid and the ask), and usually no other commissions are charged. For this reason, you need a good win/lose ratio while trading, as the moment you open a trade, it is underwater by the amount of the spread. The best spread trading firm is City Index