Spread Betting Broker Summary
This review will cover the essential aspects of ETX Capital, which is a newer Spread Betting company that undergone a few different name changes since its inception. Formerly known as TradeIndex and Tradition UK, the company has used the name ETX Capital since 2008. Some portions of the company have been in practice for decades but some traders will be weary of selecting a company that has undergone so many name and managerial changes in such a short amount of time.
Trading Markets Offered
ETX Capital does offer a slightly larger range of markets when compared to some of its smaller peers, as forex, stock indices, shares, commodities, and options are offered. In addition to this, some of the more exotic choices include ETFs, interest rates and bond trading. Their commodities offerings are some of their more attractive categories, as nearly 30 different choices are available to traders focusing on that sector. Also of interest, is the variety of contract types that ETX makes available, as traders can choose daily or monthly futures, daily market closure expiries, and rolling daily bets. This aspect of the ETX Capital platform is one of the company strengths, as this type of flexibility is relatively rare amongst its competitors.
The ETX Capital Spread Betting platform does offer some features that separate the company from other industry leaders. These include One Click Dealing, which allows traders to enter into positions with one mouse click, and this is likely to appeal to intraday and news based trading styles. The company’s range of trading instruments allows investors to access to thousands of global asset classes and all can be traded from a single account. Traders can also set alerts that will send email when markets meet certain predetermined trading conditions, and this allows traders to be away from their trading station while still remaining loyal to their original trading plans. Multiple Asset Watchlists can also be set up and customized so that traders can position themselves for a variety of different volatility scenarios.
Being one of the smaller companies in the industry, ETX Capital is unable to offer some of the attractive incentive offerings seen in other brokers. All the company advertises is a free education course that consists of two trading seminars and is valued at £500. But this value is arbitrarily set and most of the major spread betting companies offer something similar, which makes this “special offer” negligible at best.
The learning center at ETX is one of the better offerings I have seen, as it caters to not only beginners but to advanced traders as well. ETX offers both video and in person seminars so that traders can actively ask questions to trading mentors. This is a relatively unique take on the educational approach, as most brokers are more distance and reluctant to give personal lessons to construct trading styles. This is a key benefit to new traders who are willing to put in the extra effort, as many inexperienced investors usually tend to glance quickly over the broker’s educational materials.
ETX Capital offers their own comprehensive charting package to its clients, which is built into the trading platform and can be easily customized. The features available on the charts are relatively unimpressive, however, and offer little unique features other than being able to place trades directly from the charts. They do offer two different charting packages for beginner and advanced traders but the advanced charts still only offer relatively basic indicators and technical tools.
Site Strengths/ Weaknesses
Site strengths include their widely interactive educational package but once this is considered, there is little that separates ETX Capital from the rest of the pack. The company is still relatively young in many aspects and this prevents the company from making any substantial or unique offerings to clients. The charting software is very basic and their incentive programs are virtually non existent (though sometimes promotional offerings can be seen for short times).
ETX Capital is operating at a disadvantage relative to its more long established peers, and the company will need to do something to distinguish itself if they hope to become a leader in the markets. The seminar offerings are an interesting proposal but the spreads are relatively wide and the platform efficiency is low relative to the competition.