Spread Betting Section

Why Having 2 Spread Bet Accounts is a Good Idea

May 2005

As good as technology can be it sometimes breaks. And if you’re risking money it’s a good idea to have backups in place. A second spread betting account is therefore well worth setting up for times of emergency.

US Market Problems

It’s doubtful that anyone can even suggest that a trading Exchange or major financial skimps on investment into its technology infrastructure, but over the last 6 months more problems (forced market shutdowns) than usual have been witnessed on the electronic Exchanges. With so many computers and networks being used the causes of any problems can be endless. And for this reason having some sort of backup is a wise move. In fact people risking large amounts of money usually have backup everything, computers, brokers, telephones, internet connections etc.

Having Two Spread Betting Accounts

Thanks to the FSA relaxing account opening procedures most of the spread betting firms now allow new clients to open accounts online, it takes only a few minutes. If you’re risking good money with spread betting then you should definitely consider opening a second account with a different broker as a backup.

You don’t have to trade the account or deposit money but make sure it can easily be funded either by a wire or Switch transfer. Chances are you’ll never need to use it but there may come a time when your present broker is unable to offer prices either online or via the net (perhaps a bomb or emergency evacuation etc). And it’s at this time that you can bet the market starts moving against your positions.

Summary: The smartest traders are always prepared.

See Also

• Finspreads website
• IG Index website
• Capital Spreads website
• City Index website
• LearnMoney - Guide to Spread Betting