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Brendan Callan, managing director of forex broker FXCM, said individuals may be wise to enlist the services of a spread betting firm, which can act as a "market maker" that will make or lose money depending on the economic situation.
He explained to City AM: "Alternatively, if you are a successful trader and make money on a regular basis the broker may manually hedge all of your orders in the market which means you must wait for a dealer to process and accept your order before your trade is confirmed."
However, Mr Callan noted that brokers can also make money by using No Dealing Desk technology, which gives investors access to trade with some of the world's biggest liquidity providers, instead of trading against their own clients.
Meanwhile, Carl Astorri, head of economics and strategy at Coutts, recently told Citywire that investing in stock of FTSE 100 companies with pension deficits should be avoided in the event of the UK getting stuck in a deflationary situation.
Posted by Greg Secker
