There has been a lot of fuzz on the internet about the new offer from financial spread betting company WorldSpreads. In the latest wave of spread cutting, WorldSpreads managed to undo the competitors by introducing zero spread on 10 popular markets: FTSE100, DAX, CAC, EURO STOXX, GILT, BUND, EUR/USD, AUD/USD, EUR/GBP and USD/JPY.
At independentinvestor.com we don’t just report the news but we investigate it and give our readers an unbiased and independent view on the competiveness and practicality of the offers. WorldSpreads are not exception and our research team went all the way to find out how competitive the offer is and if we all should switch to WorldSpreads.
First thing that we noticed is that you need to qualify for a Premium Account. It implies that you have to deposit £5,000 but you don’t have to maintain that amount at all times. Unfortunately, WorldSpreads were unavailable to comment on how many people qualify for it or what other requirements there are. Not many retail spread bettors can afford £5,000 just as an initial deposit; hence, this offer is not for everybody and targets experienced and wealthy traders.
Secondly, WorldSpreads offer £300 safety net. According to their website if you deposit £500 and not in profit after 8 weeks they will give you up to £300 cash back against realised losses. Unfortunately, you lose this safety net if you qualify for the premium account and thus you have to realise for your self which offer suits you most. For people, who are just starting out with financial spread betting £300 cash back offer is the right option.
Finally, according to WorldSpreads they offer zero spreads on popular markets in the hope of you trading other instruments as well and that is where they, as a spread betting firm, are going to make money. Overall, 6 point spread on Brent Crude and 0.20% spread on UK equities doesn’t sound as the most competitive offer but with the zero spread offer it all evens out.
At the end we would like to thank WorldSpreads for their latest offer, which could potentially bring more offers from other spread betting companies. ‘Zero Spread’ offer sounds good and it actually is if you qualify and trade those markets, and potentially a good choice for experienced spread bettors. As for the most of spread bettors, this offer will have no effect and if you are willing to trade with WorldSpreads we recommend you opt for £300 safety net offer instead.