Comparing the Different Spread Betting Companies

Highlights at CMC Markets

CMC Markets offer coverage of most UK stocks with very competitive margins and good liquidity.

Markets Covered

Very wide range of markets here at CMC Markets - coverage of all UK 350, SmallCap and Top 300 Aim stocks plus wide coverage of leading US, European, Asian and other international shares. In addition, CMC offers top indices from Europe, Asia, America and Australasia as well as coverage of main industry sectors and over 70 currency pairs

Training Facilities

CMC Markets offer a Trading IQ pack for new traders which consists of a comprehensive manual (covering 8 Trading IQ modules), a 40 minute DVD about spread betting as well as a free full-day seminar. CMC are currently also running a special promotion where you will be allowed to trade for free for one full day on their special UK100 index (which mirrors the FTSE).

Typical Spreads

UK Shares: 0.075% either side
US Shares: 0.075% either side
FTSE 100: 2 points
Wall Street: 4 points
EUR/USD: 3 points
GBP/USD: 3 points

Dealing Commissions and Fees

There is a 1.8% fee on credit card deposits, however, CMC say that they can waive this fee for your first deposit. Other ways to deposit without incurring fees consist of BACS or Wire.

Financing Charges

2.50% over LIBOR if Long - 2.50% under LIBOR if short.

Accounts Available and Credit Facilities

Credit facilities are available for accounts that hold more than 10,000 on their accounts, they will be credited at a base rate - 2%.

Minimum Stake and Deposit

Minimum stake is £1. Minimum deposit is £200.

Rolling Policy

Rollover of positions and the Profits and Losses are calculated on a daily basis everyday at 10pm (end of trading day) in the process known as Mark to Market. Your spreadbets keep rolling until you close out the position, at which point your profit or loss is then crystalised.

Futures

Futures are rolled over automatically at the end of the contract at no extra charge.

Stop and Limit Orders Available

Market orders, stops, limits, OCO's, guaranteed stop orders and if dones (contingent orders) are available. Guaranteed Stop Orders are offered on all markets in spread betting (in CFDs they are offered on all markets except commodities.

Basis for Triggering of Stops

Stop triggers are based on the spread betting firm's traded prices adjusted for total spread.

A sell stop is triggered at an equivalent or higher price (depending on the product) than the your stop, to allow for the commission built into the spread.

An example :- You set a sell stop for a Barclays : BARC (UK) Cash at 285.00. This will trigger at 285.21. The 0.21 is 7.5 basis points commission. This is 0.00075 * 285 = 0.21375 (rounded to 0.21). Another example :-

You set a sell stop at 5300 in the UK100 Cash. This will be triggered at 5300 as there are no basis points added on for this product.

Opening Hours

The Dow Jones trades from 23:00 Sunday - 21:00 Friday. The FTSE trades from 07:00 Monday - 21:00 Friday.

Research and Charting

Limited charting on spread betting web platform - better charts on Desktop version. Includes traded watchlists, hotness indicators and live trade tickers. Clients also get free access to CMC Markets Plus+; an information resource for traders which includes market commentary, education, discussion forums, and CNBC streaming access.

Support

Support is ok although not brilliant. Live Chat support is also available.

Details and Signup Incentives

A more detailed review of CMC Markets is available here.

Or click here to sign up for a CMC Markets account and get the £200 voucher for a full day Education Course, free spread betting DVD, and a 5 consecutive days (between 8am and 4.30pm daily) of risk-free trading on the UK100 index (FTSE) with a maximum trade size of £2 per point.

Comments? Inaccuracies!!? Send your comments to traderATfinancial-spread-betting.com The spreads of a particular firm have changed? E-mail us and we will post and update.