Company Introduction
Founded in 2006 SpreadCo is a privately owned, UK FCA Regulated, specialised Spread Trading, CFD and FX software provider and market maker.
The company was originally founded by Ajay Pabari who was former Finance Director of CMC Markets Plc, and pioneer in the online retail trading market. Ajay was one of the pioneers of the CFD as a retail trading product having introduced the rolling spot spread betting product at CMC.
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Spread Co is also engaged in a series of partner relationships, offering its services through local banks, brokers and intermediaries in a growing number of overseas markets. SpreadCo currently have offices in London represents clients across the globe.
Ajay Pabari qualified as a Chartered Accountant in 1987. He spent his early years at Phibro as a Commodity Accountant and in 1991 he joined CMC Markets Plc as Finance Director where he was also in charge of Systems Integration, Operations, Foreign Exchange and CFD Risk Management and Compliance. At CMC Markets Ajay introduced CFDs and the rolling spot spread betting products and played a pivotal role in turning CMC Markets Plc into a market leader. Ajay departed from CMC in 2004 to establish Spread Co. Mr Pabari has over 30 years experience in different trading markets and technology in particular software development, market-making and managing market risk and global derivatives regulation.
What they say:
Spread Co’s online trading application has been created by some of the most respected developers in the field, responsible for the creation of the derivatives trading platforms used by some of the world’s largest Spread Trading / CFD providers.
The in-house trading platform (nicknamed Saturn Trader) which is available in two different formats; one being web-based while the other is a downloadable version (note that you can’t be logged into both platforms at the same time). Both platforms are very much identical in functionality; and provide similar functions such as order management, position monitoring, news, charting and a real-time account summary. The web-based platform is intended for clients who travel as this version can be accessed from any computer (including Macintosh) running on a web browser that supports the flash player 9.
A peek at the Spread Co Platform
Updated Spread Co Review: 2024
Spread Co markets itself as a low-cost broker offering spread betting, CFDs, and Forex trading. While it retains certain competitive features like tight spreads and low financing costs, the platform now feels dated compared to the more robust offerings of its competitors. Here’s a critical look at Spread Co’s services in 2024.
General Points (we will strive to keep this review up-to-date)
- The Saturn TRADER platform is developed in-house, unlike a number of other providers in the market who license their software from a few main providers. Specifically designed to be easy-to-use, the platform is very neat with a customisable online trading screen.
- Quoted markets include main indices, main commodities, most spot currencies including exotic pairs and all FTSE 250 stock constituents. The company also quotes individual Dow Jones, Nasdaq 100 and S&P 500 shares as well as some Chinese big stock names. Interestingly Spread Co also quotes a good selection of ETFs including ‘country baskets’.
- A 30-day Demo Account with 25,000 ‘virtual US dollars’ to practise with is available on request. Accounts can be denominated in USD, EUR, or GBP. The minimum initial deposit for spread trading is £100, or currency equivalent.
- Spreads are competitive although market selection is somewhat limited – still Spreadco allows customers to trade on over 2,500 products – all FTSE 250 stocks are covered and main markets are all covered as well as a number of sector-based products. 17 currency majors are also covered as well as UK, German and USA main indices constituent equity shares. Margins start at 5%.
- Financing charges are +2% (on Base Rate) for long positions / -2% for short positions (which is very competitive as the industry average is 2.5%).
- Wide range of orders including Stop Loss, Limit Orders and OCO’s are available – orders are either filled entirely (done) or rejected.
- Proprietary charting software with customisable study settings. You can have multiple charts, order screens and watchlists to monitor markets of interest all visible on a common screen at any one time
- Screen watching day traders have access to a ‘Quick Trade Option’ for one-click instant trades.
- Range of trading tools include an economic calendar and user guides. News feeds are also readily available, although I’ve noticed that these can take a few seconds to load in some instances. In addition, Spread Co also have a Twitter feed which supplies real-time technical analysis and markets updates which works better than market commentary reports since it is updated every few minutes.
- Spread Co also offers CFDs and Forex Spot Trading products as well as spread betting. Spread betting is often preferred by clients in the United Kingdom as they do not have to pay capital gains tax on their gains. However, contracts for difference can be useful for clients who prefer to trade fixed amounts of different markets, as opposed to the spread betting approach of betting, for example, ‘£10 per point’ movement in the FTSE 100 or GBP / USD.
- Recently the company has upgraded its web and desktop ‘Saturn’ trading platforms as well as having launched specially developed Android and iPhone trading apps for clients who wish to trade on the move.
Strengths
- Competitive Spreads:
Spread Co offers tight spreads, starting at 0.8 points for major indices like the US30 and UK100. Forex pairs like EUR/USD are also available at 0.8 points. - Low Costs for Short Trades:
Zero overnight financing for short non-FX positions is a standout feature for traders holding positions overnight. - Simple Entry Requirements:
A low minimum deposit of £100 and stakes starting at £1 per point make it accessible for new traders or those with smaller accounts. - Customizable Saturn Trader Platform:
The proprietary platform allows users to customize their screens, charts, and watchlists. The availability of quick one-click trading is useful for active traders. - Demo Account:
A 30-day free demo account with $25,000 in virtual funds is available, which is helpful for beginners to practice before committing real money.
Weaknesses
- Limited Market Range:
Spread Co falls short compared to other brokers when it comes to market selection. Shares are mostly limited to FTSE 250 constituents, a small selection of U.S. indices (Dow, Nasdaq 100, and S&P 500), and a few Chinese stocks. While the inclusion of ETFs and some exotic Forex pairs is a plus, the overall range of available markets is narrow, especially for international traders looking for broader exposure. - Outdated Features on Saturn Trader Platform:
While the Saturn Trader platform offers a degree of customization, it lacks the sophistication and modern tools available on industry-leading platforms like MetaTrader 5 or cTrader. Features like charting, while functional, do not compare with the advanced tools, seamless integrations, and automation capabilities found elsewhere. - Mobile Trading Lags Behind:
The Android and iPhone trading apps, though functional, lack the polish and user experience of leading mobile platforms. Charting and execution tools are basic, and while the apps work for monitoring positions, serious mobile traders may find them insufficient for advanced trading. - Slow and Clunky News Feeds:
Spread Co’s integrated news feeds and economic calendar are outdated, with noticeable delays in updates. While the broker’s Twitter feed for technical analysis is a nice touch, most traders expect more seamless integrations of live news and analysis directly into the platform. - Lack of Innovation:
Spread Co appears to be resting on its laurels, offering few significant innovations or updates in recent years. Competitors have embraced tools like AI-based insights, social trading, and enhanced educational resources, leaving Spread Co lagging behind.
