A few months ago, I had lunch with a couple of guys at Spreadex. It was at a lovely little Greek place called Bar Meze in St Albans. Just round the corner from their offices. Fantastic taramasalata and friendly staff.
It's one of those restaurants you go to where you don't have to look at the menu. One of the owners (he might have been the owner, he acted like it anyway) just comes up and says don't worry we'll bring you a tapas selection of the best stuff. The Swordfish was particularly good too...
But anyway, I've had an account with Spreadex for years and always loved their service, but also their credit facility. It allowed me to deal with no money on account, which was great. Mainly because I never had any money and had to wait for my "half-com" commission cheques to clear before I could fund any positions or clear my inevitable losses.
I think Spreadex are probably one of the most underrated brokers out there. So if you haven't tried them we've done a video review of their trading platform so you can have a look under the bonnet before opening an account.
Many years ago I wrote an article about if spread betting brokers where cars what would they be. Spreadex I said would be Bristols.
And I think that still holds true. Bristols are handmade in England and tend to get all their business by referrals from looking after their customers well. Spreadex doesn't spend a huge amount on marketing and instead prefer to rely on their reputation to win long-term business. Plus Spreadex makes most of their own stuff in-house. From trading platforms to CRMs. A lot of brokers outsource those kinds of things.
Even their affiliate portals.
For most other brokers we work with we can see what we refer to them, what our conversion rate percentage is, what's popular and so on. Plus it's all audited by an independent third partly like Income Access. But with Spreadex, they do it all in-house. We just get an email saying that we've had x amount of click-throughs and referred x amount of clients.
But when you have a good relationship in place, it pays to keep it honest. It's Spreadex's similar approach to clients as to why we like them on the Good Broker Guide.
For more info on Spreadex, you can read our interview with CEO Jonathan Hufford
Anyway, I've been meaning to do a video review of Spreadex's trading platform for a while. So here it is.
Watch our video review of Spreadex's trading platform
Good morning. Richard Berry from the Good Money Guide here. Today, we’re going to have a look at Spreadex’s trading platform. We’ll highlight some of the key features, we’ll just run through some of the technical analysis options. You can trade from the charts, which is quite a nice feature; we’ll run through that. They’ve got a new product called stop options, which are basically limited risk options. We’ll have a quick look at their aim stocks offering, which is one of the things that sets them apart from other brokers; you can trade aim stocks as a spread bet.
And they’ve got a few other things like price alerts and analysis that we’ll quickly run through.
If you’re not familiar with Spreadex, they’re one of the pioneers of the spread-betting industry. They were there at the beginning with IG and so on. Based just outside of London in St Albans. Nice people; I had lunch with them a while ago. Went to their offices. I’ve had an account with them for 10/15 years or so, so know them well.
If you are not familiar with the Good Money Guide and what we do, I’ll just quickly show you. This is us. So we basically rank, review and talk about brokers in a sort of fairly relaxed way. We only work with decent brokers.
There’s a lot of coverage, you know, industry gossip and so on. We interview the CEOs of the big brokers. Here we have Jonathan Hufford of Spreadex, who we spoke to way back in December last year, you know, just on how he’s positioning Spreadex and so on. It’s well worth a read if you want to find out more about Spreadex from the man at the top.
We’ve also got a review page specific to Spreadex, so we highlight obviously the key pricing points, you know, how you can deposit funds. WE compare them to all the other brokers out there. We’ve got their Trust Pilot feed as well. And also, you know, our opinion on them and so on, a little bit of a look at their platform, and we sort of cover industry news on the brokers as well. So it’s well worth a read.
If you are a Spreadex customer or you go on to use them, please do come back to the site and leave them a review. It helps other traders decide whether or not they should trade with them, and of course, it’s great for us; nice bit of feedback.
Okay, so we’ll just kick off this review. We’ll look at the most popular traded markets, which obviously, you’ve got the indices, UK, Europe and America, as well as cryptocurrencies and foreign exchange, commodities, gold, and some of the key stocks.
One of the things I mentioned earlier on was that they have a nice technical analysis package. Some brokers have a really bland offering. Some brokers have a massive offering. I think these guys sort of sit towards the top level of charting packages. It’s very visual. If you want to say pretend you’re looking at Bloomberg, you can change the display option. So you can go darker, but I quite like the standard white.
Here we’re looking at the FTSE. You can add various overlays like candle patterns, so it automatically highlights patterns. And then you’ve got other things like pro-trend lines, where it automatically adds in channels and so on, which just provide a sort of very visual overview of where the market’s going. Of course, you can change the chart types and so on, have your chart based on the bid offer or mid-price. And as well, you’ve got economic figures highlighted on the charts as well, which are quite good if there’s a big spike in the price.
If you’re looking for analysis on the FTSE, for example, you want a bit of insight into where you think it’s going, we’ve got a website called Chartsta, charts technical analysis. If you go on there, click the FTSE. We’ve got about 30 MSTA and CFD analysts writing daily, so Jackson [inaudible-04:10] I’ve worked with for many years. But taking a look at the FTSE here, if we just go back to Spreadex for the purposes of this review, we’ll put a trade on. It’s not looking too healthy, so we’ll just do £1 a point. We’ll put a stop 25 points away, so that just limits our risk. So you can see, we’ve got a margin of £351, and then we’re in.
And what is actually quite interesting about Spreadex as well is that you can trade by the chart, so that’s where we sold there, and here, this dotted line is our stop. But if you click on that, is it going to work? If you click on that, you can move your stop, along with where you think the market is. So for example, you know, if you think there’s a nice bit of resistance there, you can just move your stop on the charts, which is a nice feature for helping limit risk.
On the limited risk front, they have a new product called stop options, which are basically limited risk options. So here, for example, if we look at the FTSE. Where’s the FTSE trading? So it’s trading at 7037, 7038. If you want to put a little bet on but you want to make sure your risk is limited, this is a stop option, which will basically be closed out if the FTSE trades at 6960. So it’s about sort of 78 points away, so if we want to hedge and go market neutral, we can buy this. So we’re now along the market on a FTSE stop. If the FTSE drops to 6960, it’ll be stopped out and we’ve lost our stake, which is 75. So that’s what we lose, but it’s a two-year expiry, so if the market goes up, we will continue to make money. So unlimited upside, downside limited. So well worth a look at that.
Another thing that Spreadex are quite good at is aim stocks. Most brokers will give you access to the major commodities, foreign exchange, indices and so on, but one of the things that sets Spreadex apart is the aim stocks they offer. This is one I like, for example, but only because I want to win a car from them. If ever you use Best of the Best, or BOTB, the guys that run the supercar competitions at the airport, they’re doing rather well. You know, it’s a 25 million market cap. Fairly widespread. Here are their prices. 229 to 256. If you look at the underlying on the LSE, it’s 230 to 256. So really, their spreads are fairly in line with the underlying market. Obviously, you can trade it online but, you know, if you’ve got an order of size, it’s probably worth giving them a call and they’ll jump on the RSP and try and get you inside the price. So if you are trading aim markets and you want to do it on a spread bet, it’s well worth having a look at.
Another thing I touched on briefly before was the price alerts they offer. It really does what it says on the tin. You know, you get a nice email from them telling you that your price has been hit and you can go on to trade. It means you don’t have to be glued to your iPhone all day long.
One other thing that I didn’t touch on. Analysis – they have a fair amount of analysis. So they do obviously the major FX pairs and what’s going on in the market in general. They also have a financials blog, so they have a sort of stock of the day, Centrica, which is quite interesting. You know, they’re an execution-only broker so they’re not allowed to tell you what to buy or sell, and you should never really deal with a broker that does that, unless they’re regulated to do, but what this is quite good at is highlighting trading opportunities. Centrica, in particular, is quite interesting, if we have a look at Centrica on the Spreadex platform and have a look at the chart. You know, regardless of what the analysis says because what makes a market is 25 different opinions. You’ll be able to see that they’re not doing overly well. You know, if you want to put a bit of TA on there, let’s do a sort of [pro] trend lines, you know, not looking overly healthy. You can make your own mind up as to whether or not you want to buy or sell that, but it’s just a good bit of stimulus if you’re looking for trading ideas.
That pretty much sums it up for Spreadex. One of the other things I didn’t touch on is they also offer sports spread betting, fixed odds, and they’ve got a casino as well, so I go to Sandown quite a lot and they’ve still got a chap there wearing a fedora, so they’re nice old school booking and broker. So they can handle your trading during the week and your gambling during the weekend, which is quite good fun.
Again, if you go on to use Spreadex, do come back to the Good Money Guide, leave a review. Just come to the review page and there’ll be a little button. You know, no one’s written a review yet, but never mind. Just come on there, give us your name and your email, what you think of the trading platform, the customer service, spreads and pricing and so on. Just give a rating out of five stars. It just helps other people make a decision about who to trade with. And also, you’ll go into our draw to win £1,000 worth of Amazon vouchers.
Okay. Well thank you very much for watching. Let’s just close these trades out before we lose all of our money. How we doing? Ah, we’re okay. Alright, thanks for watching. Cheers, bye-bye.