UA-93896423-1 Review Of Core Spreads - Spread Betting Broker Comparison

Review Of Core Spreads

Core Spreads Review

This Core Spreads Review has been one of our most popular in all our spread betting brokers. Core Spreads have 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.  IG Index  course have their insight platform which will give some fairly serious technical analysis and sentiment indicators based on what their customers are trading.  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 attitude 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 Index, City Index, ETX, CMC and Capital 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.

One click demo

This is possibly one of the best pre-account features in the spread betting market at the moment.  It’s always important to take a trading platform out for a test before committing.  Most trading platforms offer the same trading features and order types so personal preference is normally determined by the look and feel.

Normally when you register for a trading demo you are bombarded by calls from eager barrow boys trying to convert you to a paying customer.  So it’s a breath of fresh air to be able to 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

The platform is 100% cloud based for reliability, is in-house built and has extremely fast execution times. The platform is code named CloudTrade based upon its cloud infrastructure which ensures worldwide coverage while remaining stable even under extreme loads and busy periods. It a good solid platform used by thousands of customers on a daily bases.”

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 3,000 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 £100m mkt cap range.

Get up to £2,500 when you open an account

Open a CoreTrader account and start trading their tight, fixed spreads. After a month claim your bonus by emailing or calling their customer support team who are very happy to help you claim your bonus.

Core Spreads will put 50% of the total spread traded in your first month back into your trading account. The welcome bonus is capped at GBP £2,500. By way of example, if you place trades with spread totalling £4,000 in their first month, the welcome bonus would be £2,000 (50% of £4,000).

There are no complicated release criteria, the bonus is yours to use as you wish, you can trade with it or withdraw it, it’s your call.

The bonus applies to all of the index, fx, commodity and equity markets Core Spreads offers on its CoreTrader platform (however, underlying equity market spreads are excluded from the spread rebate calculation).

Regulation & financial security

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).

Company History

core spreadsCore 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.

Unique loyalty scheme

With Core Points you can earn a cash rebate worth up to 25% of spread or commission traded which is pretty unique in the industry.

The Core Spreads Loyalty Scheme rewards traders that trade on the Core Trader platform and who help them to grow exponentially as a great spread trading company. You basically earn Core Points and at the end of the month your total determines your spread or commission rebate % in the following month.

Each month end Core Spreads look at how many Core Points you have. This determines where you sit in the rebate ladder for their loyalty scheme. The rebate % (or discount) determines the % you will receive on your next month’s total spread or commission. Once verified the cash rebate is paid into your account and it’s unrestricted, which means you can trade with it or withdraw it as you wish.

Core Speads know traders don’t trade all the time so Core Points don’t disappear after a month, they roll forward, reducing by a third each month following the month they are earned.

When you become a client you are enrolled automatically in their Loyalty scheme, for CoreTrader accounts you can generate Core Points on the spread you trade. If you want to earn Core Points for interacting with Core Spreads on social media you just need need to tell yhem your Twitter handle and Facebook name.

You can do this as well as monitor your Core Points balance, see what rebate level you’re currently on and see what rebate level you are in line for next month and check out Core Points statements all through the Rewards section of the CoreTrader trading platform or in the client portal.

Key Features

  • Tight fixed spreads
  • Simple platform

Welcome Bonus

  • Up to £2,500

Rebate Scheme

None available

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.

Spread Width

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

Plus Points

  • Tight spreads
  • Simple platform

Negative Points

  • No added value
  • No education
  • No research, data, signals

Trading Platforms

Very simple and easy to use CloudTrade is a state of the art trading platform for serious and novice traders. Its easy to use and has excellent navigational controls.

Verdict

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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