Spread Trading

Spread trading (a.k.a. Spread betting is a recent alternative to traditional brokerage accounts for day trading. Popularised in the UK and Europe, they avoid regulatory and tax issues usually encountered by day traders, and allow day traders to begin day trading using only a fraction of the capital that would normally be required. Spread trading companies make their money from the 'spread' (the difference between the bid and the ask), and no commissions are usually charged. For this reason, you need a good win/lose ratio while day trading, as the moment you open a day trade, it is underwater by the amount of the spread. Widely regarded as the best spreadbetting firm is CityIndex , who offer a free 'virtual' realtime trade simulator so you can get up to speed fast without risking any cash.