Advantages of Spread Betting
Spread betting offers several advantages for traders. Some advantages include tax efficiency, margin trading and access to multiple markets.
SUMMARY
- No Capital Gains Tax
- Going Long & Short
- No Stamp Duty
- Trade Thousands of Markets
- Trade With Leverage
- No Minimum Deposits
- Hedge Your Positions
Advantages of Spread Betting
Spread betting offers several benefits, including tax advantages as profits are often tax-free, leveraged trading that allows traders to control larger positions with less capital, and a wide range of markets to trade in, including stocks, indices, currencies, commodities, and more. It provides flexibility and the potential for profits regardless of market direction, as traders can speculate on both.
It's easy to open an account
- Fill in our simple online application form
- Fund your account
- Start trading the global markets instantly!
No Capital Gains Tax
Profits that you make through financial spread betting are exempt from UK Capital Gains Tax*.
Whilst profits made from spread betting do not count towards your Capital Gains allowance, any losses cannot be offset against profits elsewhere.
*Tax treatment also depends upon your individual circumstances.
Going Long & Short
With financial spread betting you can profit from both rising and falling prices.
When you trade on stocks and shares in the traditional manner, you are relying on the value of your shares rising over time to make a profit.
However, with spread betting you can place a 'buy' trade if you think the market will rise, or a 'sell' trade if you think it will fall. This is called ‘going long’ and ‘going short’.
No Stamp Duty
Any financial spread bet you place is not currently subject to Stamp Duty. Traditional investors buying shares from a stockbroker may be charged Stamp Duty at 0.5% on the value of the shares, a tax not levied on spread bets.
However, please be aware that tax treatment depends upon the individual circumstances of each client. Tax laws may well change in the future.
Trade Thousands of Markets
Trade thousands of markets with Spreadex including indices, FX, commodities, shares, rates, ETFs, options and more from one account.
You can even spread bet on several markets in specified out-of-hours sessions including markets such as the FTSE, DAX and a range of US shares.
Trade with Leverage
Financial spread betting is a form of leveraged trading. It allows you to take out positions with larger exposures for a relatively small outlay.
With Spreadex you can trade with exceptionally competitive margin rates.
No Minimum Deposits
With a traditional broker you often have to deposit a minimum amount and also place a minimum number of trades to avoid an inactivity fee.
When you open an account with Spreadex there are no joining fees, minimum deposits or trade requirements.
Hedge Your Positions
You can use financial spread bets to hedge your current portfolio.
For example, if you owned shares in HSBC and feared they were going to fall in value you could place a sell spread bet which would offset any potential losses if the stock fell in price, without having to give up the stock and crystallise a Capital Gains Tax gain or loss.
What is CFD Trading?
Contracts for Difference (CFD) trading, as per financial spread betting, offers you leveraged access to trade the global markets.
