Spread Betting Guides: Gekko Global Markets Review
Published: 21 June 2011 By MoneyhighStreet Staff Leave a Comment
If you’re interested in financial trading then you will surely have heard of Gordon Gekko from the film Wall Street, in which case you be amused to learn that there is a namesake spread betting company called Gekko Global Markets (though there is no other connection as far as I know).
It’s one of my Top 3 spread betting providers, and you’ll learn why towards the end of this article. But first, let’s look at what the user interface looks like.
On your trading overview page you see a list of your open positions followed by a list of orders as shown below. In the column to the left you see a summary of the same Pending Orders and Open Positions even when you use the main portion of the screen to look up new instruments to trade.
This approach to showing the two lists (of open positions and pending orders) all on one page is better than the approach taken by many platforms where you have to open separate tabs or windows. But it is not quite as effective (for me) as having my stop and limit order levels indicated right alongside my open positions as on Trade Fair.
The problem comes when you have a large number of open positions with closing orders, since you have to do a lot of scrolling up and down to match them up.
Unique Selling Point
Each of the spread betting providers I use on a regular basis has a unique selling point, and the Gekko Global Markets USP is fractional bets.
If you want to bet on the share price of Apple Computers, you might find that on some spread betting platforms it is prohibitively expensive to do so. At a quoted price in the order of 32500 (or a quoted price of 325 with a multiplication factor of 100) on many platforms, you could find that your minimum £1-per-point stake places £32,500 potentially at risk on a long position. No wonder spread betting sometimes gets a bad name for being “risky”.
You can mitigate this risk by applying a stop order to your newly opened position, but your stop order would have to be pretty tight – thereby putting you in danger of stopping out on a minor fluctuation.
Fortunately this platform (and not on many others) allows you to place fractional bets. By combining a smaller fractional bet with a sensible stop order you can bring your risk down to a manageable level.
As a concrete example, the account picture above shows a fractional £0.3-per-point bet on Research in Motion stock. It’s means I’m taking only ⅓ the risk of having the same position open on platform that mandates a minimum £1-per-point bet.
In a nutshell: Gekko Global Markets is best for fractional bets.
About the Author
Tony Loton is a prolific financial writer and private trader, and author of the book “Stop Orders” published by Harriman House