There are no commission or fees on closed trades; the costs are transparent. Spread betting companies make their profit from the spread between the buying and selling prices. Therefore, it is important to trade with a company who offers low fixed spreads, giving you the best opportunity to maximise the returns from your trading.
You can also trade in a size that suits your risk appetite, something that isn’t possible when using other financial products.
Financial spread betting does offer opportunities to make profits, but it does come with risks. Understanding the risks involved in spread betting, and developing suitable strategies with which to mitigate them is essential if you are to become successful. As with so many things in life, if you don’t appreciate the risks involved, you increase the chances of being unsuccessful.