What’s Holding Back the Spread Betting Industry?

The recent months have witnessed a revamped activity in online trading more so in Binary trading and Spread betting. Spread betting, for instance, is gaining traction because it offers a fun and profitable way of winning life-changing money.

The trick lies in the investor’s willingness to take risks and know how to place accurate Under or Over bets. Although investors are gradually showing interest in Spread Betting, the pace at which the industry is growing is not impressing. The trend worries many Spread betting companies to the extent that they cannot help but ask. ‘What’s Holding Back the Spread Betting Industry?’

While several reasons could be the cause for the stunted growth, here are a few genuine ones.

Lack of sufficient information

A primary obstacle to the growth of the Spread Betting Industry is the lack of adequate information and knowledge about Spread betting. Only a handful of traders can authoritatively claim to be conversant with the terminologies, rules and techniques of Spread Betting. Even though the terminologies are not all that complicated, and firms like CMC Markets provide useful Spread Betting information, there is still very little info out there. Any good investor appreciates the importance of having sufficient data regarding a venture. Consequently, in the absence of the required information, many potential investors choose to sit out, instead of capitalizing on the lucrative opportunity. Unless Spread Betting companies purpose to furnish more useful information to increase Spread Betting awareness, the growth will still be at a snail’s pace.

Online Privacy and Security Concerns

When it comes to the internet, no one should ever take their privacy and safety for granted. The situation gets dier when the issue at hand involves online trading such as Spread betting. People are merely anxious. Besides, the countless unfortunate incidents where investors lost money, bank accounts and financial data, through Internet fraud, phishing, spamming, or malware attacks only fuel the anxiety.

Spread Bet companies ought to put concerted measures to not only guarantee the privacy and security of the investors but also restore investor confidence in the industry. Novel solutions could include investing in reliable encryption and online data security solutions, as well as educating investors on how to trade safely online.

Lack of interest

Another limiting factor to the growth of the Spread Betting Industry is the lack of interest by potential investors. Most people are skeptical of internet-based investment opportunities and instead prefer the traditional brick and mortar alternatives. For instance, they would choose to trade in stocks, bonds and shares over binary trading or Spread Betting without giving it a twice over.

The most intriguing phenomenon is that if you inquired about the lack of interest in Spread betting, he or she would not have any genuine justification. It is just what they are used to. If they wish to correct such conduct, Spread Betting companies should emulate the efforts of the CMC Markets, of encouraging investors to try new online trading opportunities.

Absence of a Guaranteed Winning Formula

When an individual places a Spread bet, he or she intends to make more money. To him or her, it is an investment, which should yield returns. Spread betting, however, does not guarantee definite odds of winning. Furthermore, the number of people losing money through Spread betting outweigh those who make money. Since the person placing the Spread Bet is an investor and not a gambler, the Gambler’s Fallacy’ concept becomes irrelevant. Subsequently, when he or she puts an odd and loses, or realizes the imbalance between the winners and losers, chances of him or her investing more money in Spread bets wanes.

Leverage is a key feature of spread betting, enabling traders to control a more substantial position with a smaller capital outlay.

Conclusion

Understandably, every investment opportunity has its share of challenges. It, therefore, adds value if the promoters of the venture provide adequate support to the users. Here is where Spread Betting companies fall short. For most of them, their objective is limited to getting people to place bets. When an individual places a bet and loses, and there is no form of support or communication, he or she feels let down. The person just counts his or her losses and moves on to friendlier opportunities. Unless Spread betting companies start providing relevant and useful after sale support to their clients, they will keep on asking, ‘What’s Holding Back the Spread Betting Industry?’.