TRADE.com gave an announcement on Wednesday that it’s launched a new offering to their UK and Irish customers: Spread Betting. These customers will have access to various markets within TRADE.com and can bet on over 2 100 different instruments. The Financial Conduct Authority licenses TRADE.com’s UK subsidiary. They’ve set up a new office in Paddington, London. From there, they will deliver the full extent of its product range to the Irish and UK clientele, as well as the newly added spread bets. Along with that, TRADE.com is also providing a set of classes, educational material, and tools to spread better knowledge of asset brokerage.
TRADE.com’s Chief Executive Officer, Roei Gavish, released a statement to the public regarding this. He explained adding spread betting is part of their plan to become the ultimate multi-asset brokerage firm. Adding spread betting is simply part of that expansion, Gavish says.
He continued by saying this new spread betting offering includes asset management services, an IPO market, thematic portfolios, and direct market access. He went further, explaining that TRADE.com’s goal is to democratize investing. He said that, if it’s democratized, everyone can gain access to capital market solutions, both in investor profiles and objectives.
TRADE.com already opened offices situated in both Spain and Germany during these past few months. At the moment of writing, the firm has regulatory licenses in Cypress, South Africa, and the UK.
Spread Betting: A Small Guide
Spread betting is, as the name would apply, more a bet than an investment, though where one term ends and the other starts can be a tad subjective. Instead of buying shares low and selling them high, or doing something similar to forex or commodities, spread betting is precisely that: A bet. It’s a bit more complicated than what it may seem, but that’s what it boils down to. The better will bet whether or not the value of the asset will rise or fall, and will gain money according to this bet. Interestingly enough, the spread betting concept was invented in the US, even though it’s illegal there now.
While it’s best known for its presence in the UK and Ireland, other countries have it as well. Usually, spread betting doesn’t get taxed, which makes it a desirable thing to trade in. However, it must be noted that TRADE.com considers spread betting a high-risk venture, citing that 71.36% of investors who try their hand at it ultimately fail.
So, to whatever the UK and Irish citizens read this article, please be aware of it. The financial market is a very risky, complicated beast with a mind all its own. It should be handled like one would treat a giant, fire breathing bull.
An in-depth explanation will be linked here.