Spread Betting and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. Between 64%-82% of retail investor accounts lose money when trading spread bets and CFDs with brokers. You should consider whether you understand how spread bets and CFDs work, and whether you can afford to take the high risk of losing your money.

Switch & Trade Examples

Switch & Trade – Enhancing Wins Across Different Trading Products

Spread Angel

Connor has been a devoted trader for the past three years, with a focus on FOREX pairs and a liking for sports spread betting. His loyalty has been firmly with SpreadEx, a platform that uniquely caters to both his sports and forex trading needs within a single account. This dual functionality has been a cornerstone of his trading routine since the beginning.

A Shift in Strategy: Embracing Indices

The narrative took a turn last month when Connor attended a trading course specifically focused on indices trading. This course, emphasising Germany’s DAX and the UK’s FTSE, inspired Connor to broaden his trading pursuits beyond FX. Adopting a day trading strategy for these indices, Connor naturally continued using SpreadEx for these new trades due to existing familiarity and convenience.

The Realisation: Costly Spreads on Indices

However, Connor’s seamless transition revealed a costly oversight. While SpreadEx served his FOREX and sports betting interests well with competitive spreads, it fell short in the indices department. The discovery that Think Markets offered substantially more favourable spreads for indices trading highlighted a missed opportunity for significant savings.

The Impact of Not Switching Brokers

Over the recent four weeks, a comparative analysis enlightened the financial repercussion of Connor’s brokerage choice. Staying with SpreadEx for indices trading cost Connor approximately £2,500, or nearly £625 weekly. This revelation underpins the financial incentive to reassess broker selections, especially when expanding into new trading instruments.

A Closer Look at the Savings

Further dissecting the cost benefits, the analysis shows that trading with Think Markets would have saved Connor £15 for every £10 trade on the DAX. Given his active trading habit of about 10 trades per day, this translates to a daily saving of £150. Such figures starkly illustrate the potential savings from a broker switch.

Comparing Broker Spreads: A Must for Traders

This scenario underscores the essence of comparing broker spreads before committing to trades in new instruments. While SpreadEx offers a fixed 2.2 spread on the DAX and a 1.5 spread on the FTSE, Think Markets boasts much lower spreads of 0.7 and 0.5, respectively.

Conclusion: The Value of Broker Comparison

Connor’s trading journey accentuates a vital lesson for all traders: the importance of diligently comparing brokers. Utilising comparison tools like our Spread Angel Calculator can unveil substantial savings, urging traders to look beyond FX spreads and consider the broader spectrum of trading products. A simple broker switch, based on informed comparison, can translate into significant financial benefits. Do you have 5 minutes to check if you are getting the best deal and broker for your trading journey? Click to Compare, Switch and Trade.

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Spread Betting and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. Between 64%-82% of retail investor accounts lose money when trading spread bets and CFDs with brokers. You should consider whether you understand how spread bets and CFDs work, and whether you can afford to take the high risk of losing your money.