Following a series of encouraging results from financial spread betting firms London Capital Group decided to step up its quest to become the market leader with introduction of lower spreads on major markets including Dow Jones Spots and GBP/USD.
The move is seen as a direct reaction to the growth of financial spread betting in the UK and reluctance of some of the spread betting brokers to tighten the spreads. As many brokers are not eager to cut the spreads and thus their profit margins, London Capital Group can be a big winner here. Even before the move they boasted the tightest spreads on the market and now they are even more competitive and could force spread betting companies to lower their spreads (compare financial spread betting brokers).
The move will surely benefit many financial spread betting traders and will attract other day traders. As the traders become more aware of the competition in the industry and are more open to switching their accounts to cheaper suppliers this announcement by London Capital Group might trigger a price war.