Background and History

Financial spread betting dates back to 1974, created specifically to enable people to trade the price of gold at a time when exchange controls prevented buying the metal itself without paying a hefty premium.

In the year 2000, new companies began competing with the established players, and as the number of companies in the sector have grown, so too has the range and types of bet offered.

There are now more than 75,000 spread betting accounts alone in the UK. The flexibility and cost effectiveness of financial spread betting offers a number of benefits over and above that of trading other financial instruments.

Methods and means of spread betting are changing too. Spread betting companies now offer 24-hour dealing and live internet trading. There are new and improved credit facilities available, and many now offer the option of limiting risk or guaranteed stop losses while keeping the potential rewards unlimited.