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Spread Betting is a recently invented alternative to a traditional day trading account. Typically only available in the UK and Europe, it also has tax advantages and margin advantages that make it attractive to beginning traders.

A day trading Spread Betting account can be opened with as little as $750, a far cry from the $25,000 or so needed for a fully fledged day trading account outside the scope of the new SEC rules. The most prominent spread betting corporations are:-

• Capitol Spreads
• Finspreads
• Deal4free
• IGIndex

There are others, of course, including some that offer fixed odds. Generally the principl is that the spread betting company offers you a 'spread' at which you can buy or sell, and that is how they make their commission.