Whats been your biggest financial blunder

Giant4

Thanks Gadgetmind,

I've put in for an account with IG, but they need to review my application.....is it difficult to get an account open?
My credit ratings not great.....

gadgetmind

Giant4 wrote: »

Thanks Gadgetmind,

There is no need to thank me. Read my message again and I think you'll see that it's a warning that you will almost certainly lose money and that some of what you lose will head my way.

I'm not going to turn down anyone's money but no, spread betting is *not* a good way for a novice to invest, or even most experts!

IronWolf

Spreadbetting has its uses, but for me its more of a last resort.

For example there are some shares I've come across that are difficult to find a broker for. It would require a traditional broker with fees of £50+ each way plus foreign exchange charges, and risk!

But I found the same share on my spreadbetting account with a 17 point spread, working out cheaper dealing, and I can bet in £'s and have no exposure to FX movements.

You can also bet on things that are difficult to do conventionally, like if I want to invest in oil for a long period, I would need to invest in futures, but they expire after a few months. Spreatbets can roll on as long as I want.

PeteW

Giant4 wrote: »

Is spread betting a good way of investing? I was considering it?

Not for you no. Your question makes it quite clear that you don't know enough about investing, nor understand the dangers of spreadbetting. Spread betting is not for beginners.

SallyG

Trusting a divorce solicitor and barrister to understand defined benefit pensions.

sparrer

Getting tangled up in the working tax credits fiasco. For the last 8 years of my working life I was 'entitled to' WTC which was duly paid each month. Despite asking them to check on numerous occasions that the figure, which seemed exceedingly high to me, was correct I was always assured it was.

For the last 5 years I've been paying back overpayments and will be doing so for the next 2 years. Now they want to give me pension credits. No, thank you!

sabretoothtigger

Pete answered that right, if you dont know already the answer is no.
Is that third rail ok to touch, maybe but well I dont suggest trying really

Tax breaks are greatest benefit to the richest, so sb is of most use to the very rich.
Is that 17pt spread on a stock costing 2500. Figure out the immediate percentage losses.

I think sb also helps those who might finish a trade in 5 minutes. They charge about 6% on money lent just now plus spread loss. That is really cheap but still most should just buy shares or an etf as just making 6% net a year is excellent performance for most, making more (so paying the costs) is mostly unlikely

I know IG, Ive owned them but not used them as Im no high roller. I like the smaller companies flexibility but they all prefer big customers

Giant4

gadgetmind wrote: »

There is no need to thank me. Read my message again and I think you'll see that it's a warning that you will almost certainly lose money and that some of what you lose will head my way.

I'm not going to turn down anyone's money but no, spread betting is *not* a good way for a novice to invest, or even most experts!

gadgetmind wrote: »

It's a good way of betting, and like pretty much all betting, the house wins in the end.

This is why my wife owns shares in IG Group, who are a large spread betting and CFD company. If you do decide to gamble in this way, please use IG because we like the stream of dividends.

Gadgetmind,

It was more of a dismissed 'thanks'. I looked into it and have since called IG to close the account. It's obviously not for me.....

Pete - "no not for you" - a concise statement but as I always say 'there's no points for being the biggest a**e hole'. A bit of modesty goes a long way nowa days!

gadgetmind

Giant4 wrote: »

A bit of modesty goes a long way nowa days!

When it comes to investing, modesty is your best friend.

Investing wisely isn't too hard, but investing badly is really, really easy. Ask lots of questions before even starting, and read a few books.

PeteW

Giant4 wrote: »

Pete - "no not for you" - a concise statement but as I always say 'there's no points for being the biggest a**e hole'. A bit of modesty goes a long way nowa days!

Well I beg to differ, so here's your 10 points. Now, kindly shove them up your ārse.

Obviously you'd rather people let your obvious stupidity lose you a lot of money, but don't be too concerned, I suspect it'll work out that way regardless.