Spread betting houses are showing a healthy profit, or are moving sharply out of loss, as shown in the latest set of trading results for spread betting services.
World Spreads Group saw very strong trading results for the six months to September 2009. Both the number of active clients and the number of trades per day went up, proving that there is still room in the market for a new entrant if they can offer something worthwhile. Customer loyalty is not really much of a feature in spread betting which means that you can see plenty of these upstarts coming into this permanently shaken market.
Profitability has also increased for World Spreads. This should be a timely reminder to the spread better that these profits come from one place, the punter. This is why it’s important to have some sort of comparison tool in this rather opaque market, something which Independent Investors provides.
An interesting development with World Spreads has been the fact that they have disposed of the sports betting operation and the Irish division. Sports betting always used to be the backbone of any spread better when they started to hit the internet and it is more than noteworthy that a number of spread betters think that this is not worth the candle.
Meanwhile City Index, the grand-daddy of the investment spread betters has announced that although they are still making a loss, things are looking up for them. The usual way you can tell whether this is wishful thinking is to follow the money and look at the investments they are making and they seem to be making a lot, particularly with software and their pretty good i-phone app.