Written by Bloomberg Updated: Apr 14 , am hrs. For Britons who play the markets for a living, the collapse of spread-betting firm WorldSpreads Group WSPR was the moment the financial crisis got personal. About 15, clients, some of whom work for banks and stockbrokers, face losing cash in their personal WorldSpreads accounts after they were frozen last month. The London-based company was put into administration, a form of UK bankruptcy protection, on March Its a woeful situation, said Richard Jennings, 38, a former fund manager at West Yorkshire Pension Fund in Leeds, which oversees assets for the regions government employees.
He had more than , in his WorldSpreads account when it collapsed. We want some answers from the administrators. WorldSpreads is being investigated on suspicion of fraud by the City of London Police, according to a person with knowledge of the case, as accountants wind down the company and probe a million shortfall in client funds. Spread betting, which resembles futures and options trading, is a popular way to speculate on stocks in the UK.
Its regulated as gambling, not investing, meaning firms clients dont pay tax unless its their primary source of income. WorldSpreadss collapse renews concern that financial companies may not be segregating clients money. The Financial Services Authority has said it plans to increase scrutiny of spread-betting companies and other firms that hold client funds after the demise of WorldSpreads, which followed the collapse of brokers MF Global Holdings in October and Pritchard Stockbrokers in March.
Ayondo facilitates trading in forex, CFDs and binary options. This review of Ayondo will test each element of their offering, including fees, demo accounts and their cryptocurrency capabilities. Originally the company was based in Germany, but as the number of users grew the broker went global. Now Ayondo headquarters are located at their London, UK office. This social element to their trading system will be broken down in detail further below.
In the past, you had to sign up with a separate partner broker. However, in Ayondo launched their own brokers solution. Having said that, it is technically a white labelled version of the Gekko Global Markets platform. Nonetheless, since the change, the sign-up and login process has been noticeably smoother. Ayondo acquired the popular, investor education application TradeHero. Ayondo customers get an extensive list of instruments and markets to choose from. For example, you have access to:.
Customers from the UK and Ireland can also register for a spread betting account. In addition, users can speculate on the latest cryptocurrency, such as Bitcoin. This is lower than many competitors, making Ayondo an attractive proposition to novice traders.
In practice, you will need a minimum of Euros to copy a trader. If you want to copy several Top Traders, an account balance of to Euros is more realistic. Ayondo follows a market maker business model. They take their fee from the difference between the buy and sell price. Customer reviews are quick to show Ayondo promise competitive spreads.
This is lower than the industry average of 0. As a result, it is just the spread that Ayondo takes its fee and pays its Top Traders from. Ayondo does allow trading on margin. A live account gets you up to leverage. Essentially, this allows you to borrow money from your broker to capitalise on a potential opportunity.
However, leveraged trading comes with risks. In fact, you could actually lose more than your initial deposit. Fortunately, Ayondo allows you to manually adjust your leverage limits to a level you feel comfortable with. Ayondo regularly run a range of welcome bonuses and offers. Head over to the website to see what Ayondo Markets offers are currently available. One of the most important components of any broker review is their trading platform.
There are also generous levels of customisation available, helping to speed up execution. Cash balances, margins and trading products are clearly visible. In particular, user reviews were quick to praise that OCO orders are easily accessible and guaranteed stop-losses are automatically included with a position. It is clear Ayondo have built their platform with ease of use in mind. Information and lot sizes are clear, while the whole interface is clean and sleek. Adjusting your position sizes to fit in with your strategy is also hassle-free.
Ayondo also offers mobile versions of the TradeHub platform. You can get these mobile trading apps for both iOS and Android devices. You get variable portfolio margining and just like the desktop-based platform, you can also place trailing stops with ease while enjoying loss protection. Once you complete registration, you will need to set about funding your account. Deposits and withdrawals can be made via:. You will also need to verify your identity and address before you can withdraw funds for the first time.
If you become a Top Trader, you will get a daily overview of your revenues and easy-to-read invoices. On the whole, payment methods are an area Ayondo could improve in. There are competitors offering numerous other payment methods, from PayPal to digital wallets.
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In few years: What markets will be the most popular among new traders? Spread betting. Binary options. Other markets. Poll results. London Capital Group. Selftrade Markets. TD Waterhouse. Indices shares currencies commodities energies interests bonds.
Once you have opened your account, you can engage in spread betting across a range of markets that include metals, indices, shares, bonds, commodities, and ETFs. Next on our listing of top spread betting brokers is a well-known and trusted name in the form of Markets. They have carved out an excellent reputation through their years in the industry and in particular for offering a great spread betting service.
Here you will find a tremendous selection of assets to choose from. This includes a total of more than 2, assets that you can spread bet on. Spread betting with Markets. With Markets. This is great value given the experience and range of features available with the broker. Spread betting first of all, like any other form of trading, is not without risk to your funds. Only you as a trader who is interested in spread betting can really make the final decision if it is for you or not. If you are spread betting then you can potentially make big returns within a short period of time, though the all or nothing nature of the trading style also means that you could potentially make losses.
The margin between significant gains and losses in spread betting is slim. This is something that makes it very exciting though, and does attract many traders. What makes spread betting illegal in some countries is its very high-risk nature.
This and the comparisons that some people make between spread betting and gambling all play a role in its legality within some countries. If spread betting has been deemed to be too risky, or even illegal in your country of trading, then you will not be able to engage in spread betting.
There is still plenty of other trading types and potential you can engage in though. The recommendation would be to try some other derivative instruments trading. This means that futures , options , or CFDs trading could all be potentially good choices with the exception of the US where CFDs trading is also not permitted.
Check our listing of top forex brokers for more alternatives that may fit your trading needs. When choosing the best spread betting broker for you, what you are doing is betting on the spread essentially. For that reason, you should try to choose a broker that has the most competitive spreads and the lowest commission in place.
Generally speaking, spread betting is usually considered to be tax-free in the sense that you will not likely be charged any capital gains tax on earnings and profits you make. Similarly, there would be no rebate possibility in the case of losses.
With that said, it may depend on the country you are spread betting from, and it is always advisable to consult with a professional tax advisor on these matters. Your email address will not be published. Compare List. Top Rated:. Table of contents. Rated: Excellent.
Pepperstone Pepperstone regularly features as a top broker on many of our listings, and again here as a top FCA regulated broker. ActivTrades ActivTrades is one of few brokers that allow traders to spread bet on a variety of different platforms, including their ActivTrader, MT4, and MT5, which means traders can spread bet in a way they feel comfortable.
Is spread betting worth it? Why is spread betting illegal in so many countries? These same high risk losses though, can also lead to high risk profits in other cases. Spread betting alternatives If spread betting has been deemed to be too risky, or even illegal in your country of trading, then you will not be able to engage in spread betting. How to choose a spread betting broker When choosing the best spread betting broker for you, what you are doing is betting on the spread essentially.
Return To Top. January 10 min read. Leave a Reply Cancel reply Your email address will not be published. Keeping you better informed Find and compare the best Online brokers for you Help me choose a broker Use Advanced Search. All providers have a percentage of retail investor accounts that lose money when trading CFDs with their company. You should consider whether you can afford to take the high risk of losing your money and whether you understand how CFDs, FX, and cryptocurrencies work.
Cryptocurrencies can widely fluctuate in prices and are not appropriate for all investors. Trading cryptocurrencies is not supervised by any EU regulatory framework.