Advertising of Brokers in Soccer
In recent years there has been a new player in the world of advertising in Spanish football: the contract for difference brokers (CFDs, for its acronym in English). But what are contracts for difference? They are financial derivatives in which the investor bets that the price of a certain asset will go down or up without having to own it. If this contract is sold, it is believed that the value of the asset will fall in the future; On the other hand, if a CFD contract is bought, the investor bets that its price will rise.
Currently, there are 6 Spanish football teams that are sponsored by online CFD brokers, either through direct advertising on their jersey (At. de Madrid and Betis) or in another area of the kit (Getafe, Valencia, Seville and Real Madrid). With this type of online broker you can operate in the Forex market with which you can trade and trade currency pairs, indices or commodities.
Apparently, football fans meet the ideal characteristics of the customer target targeted by this type of firm. The sponsorship activity of the clubs is not limited to including the name of the company on the kit. Mentions are also included on the websites of the teams or there is the participation of the players in advertising and marketing events. In addition, discounts are usually offered to members of the football clubs they sponsor.
Football club CFD brokers: our opinion
To begin with, all these online trading brokers that advertise football clubs in Spain, They are not the types of brokers that we as trading trainers would recommend to our students.. In the first place because they are all market maker type brokers. And what are market maker brokers?
They are called market makers (market maker) because the operations of their clients (traders) do not actually go to the market but are executed on the trading desk of the online broker itself.
Although the prices of financial instruments (currencies, indices, stocks, raw materials, etc.) are practically the same as those offered by other online brokers, the purchase or sale operations that are requested will not go beyond the trading platform of the broker. same online broker.
The broker market maker they create an internal market for their clients (traders) and allow them to buy or sell at any time without having to wait for an operation in the opposite direction to be able to carry out the transaction.
As I was saying before, at Traders Business School we absolutely do not recommend this type of online broker for trading.
Having said that, in the next articles of the blog, we are going to carry out an analysis of all the online brokers that sponsor football clubs in Spain. We are going to show you what kind of brokers they are, where they are regulated and by whom, what risks you run when operating with them, as well as the commissions they charge when performing operations with them.
There are many reliable brokers
Although the brokers that are currently sponsoring football clubs in Spain are not recommended from our point of view, there are many brokers for trading that are recommended and safe to operate with, whether in the Forex, Futures or stock markets. . So you don’t have to put all the brokers in the same bag.
In later articles we will make recommendations of the brokers that we find reliable to trade and operate with total security. For example, at Traders Business School we usually work with something like Tickmill, Admiral Markets, Ic Markets or Pepperstone. They are all regulated by one of the main regulatory bodies that can provide us with guarantees as traders. Also, they are all ECN-style trading brokers.
Although we will tell you about it in the following articles, I will tell you what an ECN-type trading broker is. This type of broker acts only as an intermediary between its clients and its suppliers, charging a commission or spread for it without having to make counterparties with its clients (traders), so they do not benefit if the traders have losses with their operations, nor do they they harm if their clients make profits with their operations in the market.
Sounds interesting to you, right? Keep learning trading with DTP with upcoming articles on our Blog.