City Index Interview
Spread Betting Trading Centre: Could you give us a little history about the company?
City Index Ltd: City Index Ltd was established 23 years ago. The life of City Index took a radical change when the current CEO Clive Cooke took over at the helm of the company five years ago. City Index began expanding abroad and markets both spread betting and CFD services to institutions.
In September 2006, City Index bought IFX services which was known for the Finspreads spread betting service. The two brands continue to run side by side.
Spread Betting Trading Centre: Does your company offer any services in addition to spread betting?
City Index Ltd: We offer spread betting, Contracts for Difference (CFDs) and Binary Betting. We also have an institutional FX desk
Spread Betting Trading Centre: Do you personally spread bet? If so, how long have you been doing it?
City Index Ltd: I am very active on the spread betting market and have been for a number of years.
Spread Betting Trading Centre: What attributes do you think make for a good spread better?
City Index Ltd: A good spread better has to be disciplined, have a strategy and be decisive. These qualities often take time to develop because the qualities that make us successful in our chosen careers don’t always come handy in the speculative markets.
Spread Betting Trading Centre: What do you think is the principal reason your customers spread bet - e.g. hedging short-term deals, capital gain, etc.?
City Index Ltd: I am convinced that people trade for all sorts of reasons. Often the reason a person trades will dictate if he or she is successful or not. Everyone will of course say they are doing it to make money.
Spread Betting Trading Centre: How does your company compute the spread?
City Index Ltd: We apply our commission rates to the market price to offer the client the spread price. If the client is doing quarterly contract bets, then we will also apply the interest rate consideration.
Spread Betting Trading Centre: Are there minimum or maximum bets users are restricted to?
City Index Ltd: There are minimum bets and the appeal of the Financial Spreads’ trading platform is that beginners can trade a stake size as little as 10 pence at the beginning of their trading career. They enrol into the designated Finspreads Trading Academy which enables beginners to trade at a small size while getting to know the trading platform and getting to know the products. Most importantly this allows them to make mistakes which won’t cost them a fortune.
Page 1 A disciplined Spread Better | Page 2 Our most popular bets | Page 3 Market performace this year