If you are a big CFD or spread betting trader (and by that we mean £50k upwards) you need a broker that is going to give you a bit more than just the top ten traded fx pairs and a few commodities.
Our spread betting comparison tables compare all the spread betting accounts in the UK, and a quick glance will show that they are all pretty much the same. But, if you are an experienced trader with big pockets and want to trade in a tax efficient way there are brokers out there that go the extra mile to ensure that the more sophisticated traders get an edge.
If you are a big spread betting customer and want a broker that gives you more we’ve summarised some of the best accounts for larger traders.
Best spread betting brokers for HNWs with large accounts
- IG – of course being the oldest and biggest spread betting firm are a clear choice for HNW clients. They have a huge balance sheet and are also listed on the LSE, so it should be very clear if the firm is having difficulties.
- Spreadex is one of the most well established spread betting brokers. They launched in 1999 and probably offer the widest range of markets, phone trading and excellent personal service. You can read our interview with Spreadex CEO Jonathan Hufford
Best CFD brokers for high net worth individuals and large traders
- Of course, IG offers CFDs and tops this list as they offer CFD trading too.
- Saxo Capital Markets is another decent CFD broker for HNWs as you can trade DMA, buy physical shares, bonds, and trade all sorts of exotic derivative products. They also have decent brokers for phone trading if you want to work VWAP or other algo orders that may otherwise move the market if you did them yourself.
- Compare other brokers for CFD trading here
The importance of brokerage account diversification for larger traders
No matter what size your account balance you should be a responsible trader and diversify. This doesn’t just apply to your portfolio, but also to your financial service providers.
History has shown us that spread betting brokers can go bust in the blink of an eye. It is sensible to spread your business around a few of the top spread betting brokers so that if there are rumbles or rumors you can close and reopen your positions at another broker quickly.
The last thing you want to happen is to have all your positions with a defunct broker and the auditors taking weeks to close them out (cough cough MF Global). A sensible solution to mitigating this issue is to have a secondary account on standby so that if you foresee any future problems with your broker you stop using them sharpish…
As most accounts are opened online it can take as little as 20 minutes or as much as two days to get a new account ready. Make sure you trade for the best, but are prepared for the worst and have secondary accounts that you are familiar with on stand by in case you need to make a switch.
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Richard started the Good Broker Guide in 2015 and has been a broker for 20 years most recently at Investors Intelligence and previously a multi-asset derivatives broker at MF Global (Man Financial). Richard started his career working as a private client stockbroker at Walker Crips and Phillip Securities (now King and Shaxson) after interning on the NYMEX oil trading floor in New York and London IPE in 2001 & 2000.