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Capital Spreads, the spread betting division of London Capital Group, is considered to be the responsible face of spread betting and one of the UK’s leading spread betting companies offering great value for money and unrivalled customer services.

Spread betting is a highly adaptable trading tool; with a Capital Spreads account customers can trade in many financial products using one of the several major currencies. Capital Spreads offers prices on UK, European and US shares, world indices, commodities, foreign exchange and bonds. Customers can bet on the Cash, Future or Rolling Daily products.

Capital Spreads is unique in the industry by offering newcomers to spread betting a Demo trading account which mirrors the live trading platform in every way (other than the number of products available and any manual intervention). The Demo Account provides potential customers which a virtual cash balance and allows them to ere they can learn about spread betting and execute mock trades absolutely free of charge.

Other features available on both the Live and Demo site include a comprehensive Order facility where customers can leave instructions to open new positions with “if done” stop and limit instructions plus, if required, a OCO (one-cancels-other) service.

Unlike other spread betting companies Capital Spreads does not offer its customers credit accounts, enabling the company to offer market-beating spreads and prevent customers from getting into debt should the market turn against them. Every time a customer trades with Capital Spreads an automatic stop-loss is generated to ensure customers take responsibility for their risk.

With typical spreads significantly tighter than those offered by most of its competitors,  Capital Spreads offers a better value service to its customer base. Rolling Daily bets have proved particularly popular with the FTSE, for example, quoted on just a 1 point spread and the  Euro/USD only 2 pips.

As well as tight spreads, Capital Spreads’ customers benefit from a limited margin policy, where they are required to deposit only the maximum value of their stop-loss (plus 20%). This means that large sums of capital are not tied up funding the spread betting account, as is the case with other spread betting organisations.

Capital Spreads is not a stockbroker and does not charge commission or fees; it makes its profit from the spread it adds to the underlying market prices. Spread bets are a margined trading product which means customers only need to deposit a small percentage of the full value of their trade, freeing up their money for use elsewhere.

For example, a £1 bet on a share is the equivalent of buying (or selling) 100 real shares. On most shares the minimum deposit is three to five per cent of the underlying value of the shares which means that customers can take a bet in a share with as little as 1/30th of the money required to buy the actual real shares from a stock traditional broker.

Capital Spreads’ experienced traders are complemented by a customer friendly online trading platform, which is easily accessed without complicated downloads. The system makes it easy for customers to manage risk by automatically limiting their liabilities with a non-guaranteed stop-loss or by closing positions to lock-in profits.

Spread betting appeals to a wide variety of individuals who want to take advantage of the versatility and great value that spread betting can offer. Experienced investors use spread betting as an additional trading tool as the spreads offered by Capital Spreads rival the prices available in the real market. Alternatively, many investors use spread betting to hedge their existing share portfolio. For example, if an investor has some shares which are decreasing in value in the short-term, they could “Sell” the value of the share using a sell bet with Capital Spreads and possibly make a profit to counter-balance the decreasing value of their shares.

Customers do not need to be an experienced investor to spread bet, but they do need to research the products that they wish to trade and be aware of the risks associated with spread betting. Many individuals new to spread betting use technical analysis to guide their investment decision. Capital Spreads provides charts for every product it quotes to assist customers with their technical analysis.
The average financial spread betting customer is male and around 41 years old. He trades online, (normally logging on whilst he’s at work) and he often has previous experience of trading financial products. Typically he’ll use a mixture of technical analysis tools and live news feeds before trading but most importantly he is looking for a good deal.

Capital Spreads is a division of London Capital Group and is authorised and regulated by the Financial Services Authority (FSA) and is a member of the London Stock Exchange, LIFFE, Eurex, Deutsche Borse and Euronext. Spread bets carry a high level of risk to your capital. Only speculate with money you can afford to lose. spread betting may not be suitable for all customers; therefore, ensure you fully understand the risks involved and seek independent financial advice if necessary.

Nothing in this press release should be construed as investment advice.

For more information, please visit www.capitalspreads.com

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London Capital Group Holdings plc (LCGH plc) is a company registered in England and Wales under registered number: 05497744.  London Capital Group Limited (LCG) is a  wholly owned subsidiary of LCGH plc.  LCG is authorised and regulated by the Financial Services Authority (FSA), a member of the London Stock Exchange  and is registered under company number: 3218125.  Registered address for LCGH plc and LCG is: 4th Floor, 12 Appold Street, London EC2A 2AW.