London, United Kingdom (PressExposure) November 30, -0001 -- "We are seeing an increase in the amount of traders that are using spread betting" said Phil Seaton Head of research at LS Trader financial spread betting systems. âAs the spread betting industry is becoming more competitive with more and more firms offering spread betting we are seeing a drop in minimum bet sizes and a reduction in spreads.â
Since profits from spread betting are already tax free in the UK, lower spreads and minimum bet sizes will make spread betting more attractive, making it the ideal way for people to get exposure to the stock, commodity and forex markets.
Phil Seaton added that âPeople who trade at home are currently obsessed with day trading and forex trading and this is bringing new people in to spread betting all the time. Historically, day trading is not profitable for the primary reason that traders place so many trades that they rack up too much in spreads and commissions to be able to make a profit over time. Obviously if spreads continue to decline then day trading will become even more popular. That said I have yet to see a day trading system that is profitable in the long termâ.
Seaton later said that âPeople who use day trading at home are largely unaware as to how much the spread costs affect their profits. This is especially true for traders who dive in and out of the markets every 5 minutes. If they realised how much they were spending in spread costs they would almost certainly stop day trading and move to a less frequent but more profitable trading style such as the longer term trend following approach that we use at LS Traderâ.
As the trend for tighter spreads and lower minimum bet sizes continues, spread betting will become even more popular and due to lower transaction costs traders will become more profitable.
For more information about LS Trader and their technical trading system please visit: http://www.lstrader.com
You can contact LS Trader by email at support@LSTrader.co.uk or write by post to LS Trader at?The LS Trader Group, 2nd Floor, 145-157 St John Street, London, EC1V 4PY