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The Virgin Spreader chronicles my journey into the world of spread betting.

This spreadbetting blog starts from day one of a novice spreadbetting career. I intend to hunt down as much advice on spread betting as possible, talk to as many professional spread betters as possible and develop a winning spread betting strategy. And I will write it all down here. If you have anything you would like to contribute PLEASE get in touch!

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Home The Virgin Spreader The Virgin Spreader Another spread betting house in profit
Another spread betting house in profit PDF Print E-mail
Written by Virgin Spreader   
Tuesday, 22 December 2009 12:21
WorldSpreads profit rises 22%, their results, while profitable, confirm that the UK spread betting market could be saturated.

So far this quarter we have seen IG Index report that it is set to continue its dominance of the spread betting and CFD scene. This contrasts with London Capital Group who report that they have not been having as much success in the turbulent markets that have characterised the year gone by.

Spread Betting providers World Spreads today can however confirm that the house remains firmly ahead in the spread betting game.

The firm saw profits rise 22 per cent in the six months to September 30th, the company said today. €1.67 million was made in profit before tax during the six months, up from €1.37 million a year earlier.

World Spreads may not be as big as IG and London Capital, but I have had a go on their site, and can report it is a sexy offering.

That said I am still yet to trade with them in a live situation so I won't pretend to be an old hand at their spread betting platform.

World Spreads also announced a change in ownership - it has completed the sale of its profitable Irish subsidiary to a consortium led by local management.

Investors on the FTSE were however not impressed, with shares falling by over 9%. (see LON:WSPA).

Like IG Index and Capital Spreads the firm has bemoaned the return of volatility to the markets which suggests one of two things: Traders have their odds improved by volatility, or - and this is more likely - traders are staying out of the markets in choppy times.

"Whilst volatility has returned to more historically normal levels, the Group has still managed to maintain strong profitability, most notably in the UK and International markets," said chief executive Conor Foley.

However while the UK market is profitable, World Spreads say they don't see many chances of further expansion.

This echoes what IG Index said when they announced they would be seeing most of their growth coming from outside the UK.

"Our focus remains on penetration of international markets outside Ireland and the UK and investing in the technological and product infrastructure which will be required to underpin this strategy," says Foley.