Financial Betters - BetsForTraders.com Looks Interesting
May 2007
We've just received an email from a new financial betting website called BetsForTraders.com.
This blurb from their email -
- BetsForTraders.com is the web's most sophisticated platform for betting on financial markets including stocks, indices, foreign exchange, commodities and interest rates. Wagers can be placed for any time period from as little as 10 minutes to up to 30 days.
- As well as the already popular Binary and One Touch bets the site offers a range of new betting structures never previously available to the betting public. These include:
- The 'Time Switch' bet, which pays out a fixed sum of money for every time interval that the market is above / below / in the range selected by the punter.
- The 'Lookback' bet, which pays the punter the difference between the market price at the time the bet is placed and the highest (or lowest) level that the market reaches during the life of the bet, multiplied by a number of pounds per point.
- The site utilises a 'slidey bar' interface technology previously unseen in the betting industry which empowers clients to 'build their own' financial bet through a simple parameter selection process. The client selects every aspect of the bet from a near infinite range of possibilities in order to maximise their returns.
- The number of bet types offered, combined with the large number of markets available to bet on and the 'build your own' flexibility of the site's dealing interface will make it by far the largest fixed-odds financials offering in the world.
- The concept of fixed-odds financial betting is not new with about half a dozen existing operators in the market. The idea began with simple fixed-odds bets being quoted by the traditional bookies on a few market events. The foundational concept of minimising speculator's risk by fixing it at the stake wagered has remained unchanged but the sophistication of the bets available will be seen to have grown exponentially with the launch of BetsForTraders.com.
- John Ansbacher, spokesman for Trinitas Capital, the firm behind the site, said "The goal of the team at BetsForTraders.com is to bring transparency, simplicity and increased choice to financial speculators. The dealing interface is both intuitive and powerful and we believe that it will revolutionise online financial betting as clients are able to optimise their expected profits. We will begin the first trading week by just offering FOREX bets but will expand the offering to include stocks, indices, commodities and rates over the coming weeks as clients get comfortable with the dealing interface".
Fixed Odds Not Spread Betting
Spread betting is for many a double edged sword. The advantage is that profits are open ended but unfortunately so are losses. It's therefore possible to place a bet expecting to lose £250 (if it goes wrong) but actually lose £800 due to the market moving very quickly through your price level, due perhaps to an unexpected news announcement.
BetsForTraders.com however offers only fixed odds bets similar to how a Ladbrokes operates. Place £100 on the FTSE to move higher and if it doesn't £100 is the maximum you can lose. However, BetsForTraders.com and other similar companies do hold one massive advantage over the old school bookmakers. Their markets are always being quoted so you can take your bet off at anytime before the market closes.
For example, you place £100 on the FTSE to rise within a certain timeframe (max. loss £100). But an hour later you change your mind so take the bet off perhaps for a small loss or even a small profit. This adds a lot of flexibility to the mix.
Regulation
As the company is not involved with Spread Betting and is located on the Isle of Man, located 80 miles of the coast of NW England it doesn't have to be regulated by the UK's Financial Services Authority (FSA). Instead, the regulator is the Isle's 'Gambling Control Commission' whose powers, like the FSA, are extensive and the capital requirements and other regulatory hurdles contribute to the safety of client funds.
Summary
This new spread betting company looks interesting especially the 'Slidey bar' concept. The company offers a free trading simulator account to test things out and we'd strongly recommend people take advantage of this.
Remember, if you're new to the markets and/or spread betting in general take things very slowly in the beginning. Fund your account with a small deposit (under £300) and learn from your mistakes which paradoxically are often are the best education. Then when you become more comfortable, not just in the markets but with the software and different bets on offer, gradually increase the size of your account.
Don't do what this writer has witnessed 1001 times by people starting out in the financial markets. Fund your account with a large slug of money, lose well over 50% in a matter of weeks and then moan 'I wish I'd taken it easy to start with!'
Good luck!
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