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Savers turn to financial spread betting to get returns on their cash

00:00, 01 February 2016

updated: 14:56, 03 May 2016

SPONSORED EDITORIAL

As pensions and traditional investments go up and down like a rollercoaster ride, people are looking further afield for alternative ways to boost their investment portfolio.

An increasingly popular option is financial spread betting, an investment tool which replicates the world’s financial markets.

It enables you to profit from trading equities, commodities or currencies via an online trading platform, so anyone with access to a computer can trade the financial markets.

Investors can learn to trade the financial markets using spread betting
Investors can learn to trade the financial markets using spread betting

The term financial spread betting is misleading and conjures up suggestions of gambling but this is far from the truth. It is a legitimate investment tool that is fully regulated by the Financial Conduct Authority.

Unlike traditional stocks and shares, you never own the underlying asset – you simply make your money trading movements in the price of a stock.

Not only does this mean you don’t pay capital gains tax or stamp duty, but all profits you make are completely tax free.

A unique aspect of financial spread betting is that it allows you to profit whichever way the markets are moving, so you can make money from a decline in values, known as bearish markets.

So called “going short” will allow you to take advantage of oil prices falling. This method of trading has been around for centuries and only recently has been made accessible to non-professional traders.

For example, say your research has led you to believe the price of oil will fall from $42 to $32. You sell it at $42 now, and you buy it back later when it hits your target of $32. If you placed a £1 per point spread bet on that trade, you’d make £1,000.

It is of course, not quite as easy as it sounds – the key to success comes from using a 3D approach based on behavioural psychology, risk management and technical analysis.

If you are a discerning investor based in Kent and are looking to convert your ability and experience into a talent for reading the markets, then spread betting is worth investigating further.

For details on how you could get involved, visit the website of The STOP HUNTER, which runs courses on how to trade the financial markets.

The courses are run by trader and technical analyst Stephen Hoad, who has worked for US investment bank Merrill Lynch and Koch Industries, the second largest private company in America.

Click on www.thestophunter.co.uk or like its page on Facebook or follow the company on Twitter via @thestophunt3r

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