Spread Betting Broker Summary
This review will cover the essential aspects of Capital Spreads, which is a newer company, offering spread betting services since 2003, but the company has been widely quoted and interviewed in the major financial media outlets and should not be viewed as questionable because of its shorter operating period. The platform offered by the company is designed to give traders a fresh alternative to traditional offerings and when trading, transactional feeds tend to be kept at or near industry lows, with extremely flexible margin levels. It should be remembered, though, that Capital Spreads platforms cannot be used by US or Turkish based traders, as Spread Betting products cannot be legally traded in those areas.
Trading Markets Offered
Capital Spreads offers a diverse list of tradable assets, mostly inline with other major competitors within the spread betting brokerage industry. Capital Spreads offers access to forex, commodities, stock indices or individual shares, interest rates and bonds. Exchange hours differ for these different asset classes, and there is a detailed table on the company’s website that shows when these different assets are commonly traded. Capital Spreads offers a suitable variety of trading asset classes for the average investor. Some markets charge higher trading fees than other, with some commodities trades being particularly expensive.
The platform that is used by Capital Spreads clients is a propriety web based program that will not need to be downloaded onto your home computer and can be accessed by any computer with an internet connection. Mobile applications are also offered, so trades can be monitored at all times. Trades can either be initiated from these mobile platforms or altered once market conditions change, so short term traders are able to work with actively moving markets anywhere. Capital Spreads does also offer a demo platform, which allows traders to test the company’s trade offerings without putting real money at risk.
Capital Spreads is weak on its special offerings, with only a “refer a friend” program currently in place. But this program is not easy to complete, as all traders in your circle need to place 5 different trades (non of which can be in stock shares), in order for the original trader to receive £100 for both you and the other member.
The learning center offered by Capital Spreads is mostly geared toward beginning traders (which is somewhat inconsistent with their apparent need to attract new traders). Most of the educational material is basic in nature and offers text and video tutorials outlining the process of Spread Betting, as well as the benefits and risks of the business. The company does offer market news and this is more long term in nature, as the main release is a weekly market update. Session by session updates are also available however, which will cater to news based trading styles.
The charting package offered by Capital Spreads is different, however, in that it tends to be geared more towards advanced traders with a need for a wide variety of technical analysis tools in their charts. Their charting package allows traders to back test technical strategies, set trading alerts for new entries, and even to customize the indicators that are available in the default trading platform. Most new traders are unfamiliar with many of these features, so it appears as though Capital Spreads gears its chart offerings toward traders with at least a few years experience. But even for traders with no experience, there are video tutorials explaining all of these features, using simple language and graphics.
Site Strengths/ Weaknesses
Site strengths include easy access when opening new accounts and an easy to understand trading platform that has a sleek design that can be effortlessly visualized. Their spreads are also a clear benefit, as it can be seen in the company name that keeping trading costs low is one of their priorities.
While their incentive programs for new clients are uninspiring, some of the other features offered by Capital Spreads should not be avoided. Low trading costs and a wide library for new traders mark some of their best offerings, and the technical analysis that can be done on their charts will be a key benefit for many trading styles.