How to open a spread betting account
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
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