Financial spread betting is commission-free. All the cost associated with spread betting is built into the bid-offer spread. If you go through a traditional broker, you will need to pay the broker to make the deal of buying and selling shares for you. Spread betting is much more efficient for those who are looking into buying or selling stocks more than three times a day.

It can make trades even outside market hours. Most of the spread betting company is open for 24 hrs a day, from Sunday night up to Friday night. It is possible to deal bets even when traditional markets are closed, unlike normal market trading hours which only run from 8:00 am to 4:30 pm.

Dealing of bets can be immediate. The executions of bets are completed within 1 minute. Because spread betting companies are not brokers, all the trades done are between the spreading company and the client. Less paperwork is involved compared to the conventional share dealing. Most of the time only a signed application and utility bill are needed to setup a spread betting account. You can trade to different markets from just one account. It can provide people with the ability to trade to different markets with just one account to British shares, American shares, European shares, stock market indices exchange rates and of course sports and politics.

Using spread bets rather than the actual share purchases gives a big advantage. This is why one can make phased exits without additional broker fees. This can give tremendous physiological value. You can make money even if the market rise or falls. Shorting will allow you to make money not only in rising markets but also falling markets. These past years it has been difficult to make profits as a trader without the ability to go short. Diversification is the only thing that is free in investment. This is not exactly true but is quite close. You can gain instant balance to the market by betting on an index rather than just a share.

Another major advantage of spread betting is its innovation and flexibility. Not like the traditional markets spread betting companies can offer new product or variations on established products very quickly. Because the products that they offer are so call Over-The-Counter, they don’t need to go through regular process that other major exchange markets do. However these financial spread betting companies are fully regulated by the Financial Services Authority.