Margin trading products are complex instruments and come with a high risk of losing money rapidly due to leverage. 85.67% of retail investor accounts lose money when trading on margin with this provider. You should consider whether you understand how margin trading works and whether you can afford to take the high risk of losing your money.
You have decided that you want to start on your trading journey. After doing some research you have concluded that a spread betting account is the way forward for you.
You like the mobility that it offers, the easy-to-use platform, the tax-free profits and the fact that brokers offer a wide range of educational material to help you stay on the road.
Figure 1 Pepperstone Education
What information will I require?
Opening a spread betting account is relatively easy. All you need is an internet connection, a computer or phone, and a form of identification.
You will be asked to fill in an online application. There will be a variety of questions such as your employment status and salary. Although this may seem slightly intrusive, it serves as guidance and is intended to help the broker establish if a spread betting account is right for you.
You will also be asked to prove your identification. This will normally be by scanning a passport or driving licence. This is a requirement to help protect against money laundering.
It can take minutes for your account to be approved and you will be notified by email. In the meantime, you will normally be able to login to the trading platform to ‘walk around’ and establish yourself with the different functionality, if you haven’t already tried a demo.
Will I be graded as a retail investor or pro?
If you are new to investing your account will be graded as a retail investor. A retail traders platform offers the same functionality as a professional trader with one slight difference, leverage.
Retail traders are offered 30:1 leverage. Professional traders 200:1 to 500:1 depending on the product. This allows the professional trader more exposure to the market
Opening a spread betting account at Pepperstone
Want to get started? Click on this link.
The material provided here has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Whilst it is not subject to any prohibition on dealing ahead of the dissemination of investment research we will not seek to take any advantage before providing it to our clients.
Pepperstone doesn’t represent that the material provided here is accurate, current or complete, and therefore shouldn’t be relied upon as such. The information, whether from a third party or not, isn’t to be considered as a recommendation; or an offer to buy or sell; or the solicitation of an offer to buy or sell any security, financial product or instrument; or to participate in any particular trading strategy. It does not take into account readers’ financial situation or investment objectives. We advise any readers of this content to seek their own advice. Without the approval of Pepperstone, reproduction or redistribution of this information isn’t permitted.