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Core Spreads Review
Core Spreads has been founded and set up on the basis that spread betting traders are still overpaying for the service. The pitch is that they are the Easyjet of the spread betting brokers i.e. no thrills, but the same basic service. They are quite keen to highlight this on their website and most of the marketing material. “No Noise – just tight, fixed spreads on thousands of markets.” What this means is that all you get is a trading platform, no news, no technical analysis, no community, no sentiment, no fundamental data and no signals etc.
But they may be on to something. Of all the spread betting platforms out there most will give you some added value. Most spread betting brokers will provide live asset tagged news flow. Some of the larger ones will also give free access to fundamental data such as Digital Look, Autochartist and Trading Central.
Core Spreads ethos is that all these bells and whistles are not really needed and to cover the cost the brokers must add a little more on to the spread. When reviewing Core Spreads it’s pretty obvious that they can keep their spreads the tightest in the industry by cutting out all the unnecessary add ons. Let’s be honest, you can pretty much get all you need from Google and Yahoo Finance now. Plus these add ons are never the full package on offer by the underlying provider. If you really care about technical analysis and sentiment, as a trader you will invest in full access to the services.
USP – Tightest spreads in the industry
But, how much can you save? This is a key point because even if the spreads are tight is it really worth dropping the add ons. We know they are generally pointless, but it always helps to get a second opinion on a trade (even if it is only from a data feed). To figure out if the savings are worth it we’ll take a look at the FTSE (or UK 100 as the spread betting companies call it (due to FTSE asking for ridiculous licence fees to use their trade mark – they just upped it to £50k per year for brokers)) and calculate what a trader could save.
In this example we’ll assume a customer is trading three round trips a day (six trades) at £10 per point. That is the equivalent to one lot on the FTSE Future, and probably about right for a trader that has between £1k and £5k on account. The margin for each of these trades would be between £200 and £1,000 depending on what broker you are using (IG = £230, Core Spreads = £430, Cap Spreads = £1,000 – of course you can reduce these initial margin amounts with stops/hedges etc.)
In a comparison of spreads taken at 3pm on Monday IG, City Index, ETX, CMC and Cap Spreads all quote a spread of one point, Core Spreads quotes 0.8. So, if you trade three round trips a day, five days a week it’s going to cost you £7,800 with the established brokers or £6,240 in trading costs with Core Spreads. Over a year you’ll save £1,560 or 20%. If you’re scalping that 20% can make a massive difference. It can also buy access to a pretty decent stand alone technical and analysis platform.
Yes you can get a demo account here. It’s always important to take a trading platform out for a test drive before committing. Most trading platforms offer the same trading features and order types so personal preference is normally determined by the look and feel.
Get a feel for the Core Spreads trading platform without being added to an email marketing list or being bothered by salesmen.
Core Spreads trading platform
It has all the usual features, watch lists, basic charts, a wide range of order types, but as we covered earlier, all the extras such as news feeds etc, have been stripped out to reduce costs and narrow the spreads. There are about 2,000 instruments to trade including all the major FX pairs, commodities, indices and fixed income products. Equity coverage is as good as the rest and stops around the £50m mkt cap range.
Get up to £2,500 when you open an account
This is fairly standard welcome bonus these days. It’s not to be sniffed at, but it’s also not instantaneously available. You have to put a certain amount of (non-equity) trades through before you can claim it. This is roughly equivalent to you generating £2,500 in spreads commission plus a little profit for the brokers. As competitive as the spread betting industry is, it is a pretty reasonable offer and brokers aren’t going to just give away money unless they are getting something back for it. It’s always worth claiming these bonuses for a couple of free crazy Rio trades, but other than that it’s never worth trading more to get a bonus, that will always lead to disaster if traders start forcing positions. Apply for an account here to get the welcome bonus.
The Core Spreads Loyalty Scheme rewards traders that trade with them on the Core Trader platform and who help us grow. You earn Core Points and at the end of the month your total determines your spread or commission rebate % in the following month.
Regulation & financial security
Core Spreads is an appointed representative of FINSA Europe and headed up by Stuart Lane (CEO) who has a solid 15 years experience and previously served at ETX and IG. Whilst there is only one entry on the FSA register for Core Spreads, being an appointed rep of FINSA there are some experienced industry professionals who are regulatory responsible for the business.
Core Spreads is a trading name for Finsa Europe Ltd, a company registered in England and Wales under number 07073413 which is authorised and regulated by the Financial Conduct Authority (FCA) under firm reference number 525164.
It’s always tricky lodging funds with smaller brokers as there is a greater risk of default. However funds are protected by the Financial Services Compensation Scheme (FSCS). This scheme protects up to £50k and £85k of deposits and investments if a firm is declared in default. You can read more about the compensation limits of the scheme here.
Are they any good?
It’s amazing that spreads can get any tighter. In the underlying market the FTSE for example trades in 0.5 ticks so it’s only a matter of time before some crazy spread betting broker starts offering zero spreads. In the meantime, if you are an active trader, who jobs about in index, FX and commodities on an intra-day basis Core Spreads is certainly worthy of an account.
On the basis that most traders have several accounts Core Spreads has positioned itself well to provide exactly what traders need in these specific markets. A cut back platform that cuts costs and can increase your trading profits (or at the very least narrow your losses).
Core Spreads was founded in 2014 and they offer the tightest spreads in the industry. It’s a small lean firm that focuses and reducing trading costs. They don’t offer anything other than tight spreads on a good solid platform and focus on their core product – cost effective market access.
- Tight fixed spreads
- Simple platform
- Up to £2,5000
- Trade twice the bonus amount to withdraw
Range of Markets
It’s good, but not great. But, because Core Spreads focus on providing such tight spreads, it would be unrealistic for them to do so on a wide product range. They do offer a few thousand assets, but the key point is that the top 20 traded asset classes have the tightest spreads in the industry.
There is no other broker that provides tighter spreads
- UK Index 0.8 points
- Apple 2 points
- Gold 4 points
- GBPUSD 0.9 pips
- EURUSD 0.7 pips
- Brent 4 points
- Tight spreads
- Simple platform
- No added value
- No education
- No research, data, signals
Very simple and easy to use. They also offer a one-click demo where you can try the platform without handing over any personal details.
An excellent broker for scalpers and price sensitive traders. They offer the tightest spreads around so if you are jobbing around in the major FX pairs and indices all day this should suit you right down to the ground.
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