UK Financial Spread Betting
From Spread Co
Financial Spread Betting is an exciting way to trade world markets and Spread Co allows you to do this simply and efficiently from one online trading account. Our aim is to make your trading experience fast, cost effective and fun, and to support you in all your trading goals. To take advantage of our Spread betting service click here to apply today.
With Spread Co Financial Spread Betting You Benefit From...
- Tax Free Trading - no Capital Gains Tax or Stamp Duty on winnings*
- Trade long or short - benefit from falling as well as rising markets
- All trades in one currency - no additional foreign exchange exposure
- Brand new, easy-to-use trading platform
- Tight Spreads (e.g. UK 100 - 1 point, EUR / GBP - 2 pips)
- Standard and limited risk accounts available
RISK WARNING: Contracts for Difference, margin Foreign Exchange trading and Spread Betting carry a high degree of risk to your capital and it is possible to lose more than your initial investment. Only speculate with money you can afford to lose. These products may not be suitable for all investors, therefore ensure you fully understand the risks involved, and seek independent advice if necessary. *Tax laws are subject to change.
Need more information before you apply? See below for full details on the benefits of Financial Spread Betting, our Financial Spread Betting charges and our Financial Spread Betting software:
Benefits of Financial Spread Betting with Spread Co
Puts you in control of your own trading
You can see clearly the prices you can trade at and can choose to deal straightaway or to place orders at those prices. You can trade everything from one account. You really are in control of your trading and not reliant on other people to undertake your trading for you.
Access to global markets and wide range of financial instruments
With Spread Co Spread betting, you can trade individual shares, indices, currencies, commodities and bullion all from the same account and all in real-time.
Leverage
Since you Spread Trade with margin, your capital can be spread more effectively over a wider portfolio. You only need to put down a percentage of the total value of your trades, that percentage or "margin" depending on what type of financial instrument you are trading. For example margins for foreign exchange and index trading are based on a fixed cost per currency unit per point (e.g. GBP 30 for a GBP 1 per point trade on the FTSE100), whilst margins for equity trading might range between 5 and 20% depending on the equity. These margins are known in Spread Trading as the 'Notional Trading Requirement' or 'NTR'.
Longer trading hours
Spread Co offers extended hours trading on certain markets, giving you more opportunity to trade. For example, Spread Co may quote Vodafone and Barclays prices even after the London Stock Exchange has closed for the day. You can trade many markets 24 hours a day at any time between 10pm on Sunday evening (London Time) and 10pm on Friday evening (London Time).
Instant execution of trades
When you Spread Trade with Spread Co, your trade will usually be confirmed as soon as you hit the buy / sell button (this is subject to the deal or order size being within permitted limits and the instrument being priced correctly). You should not have to wait more than a few seconds for prices to be confirmed, except in unusual market conditions.
Tax Free Profits*
If you are a UK resident, you do not have to pay capital gains tax or income tax when you make profits from Spread Trading in the UK, as the profits are classed as the winnings of a "bet". This is in contrast to profits from CFD trading, which are taxable on a Capital Gains Tax basis for UK residents. (Remember, tax laws are subject to change).
No stamp duty on Individual Share transactions*
There is no stamp duty if you Spread Trade on individual shares in the UK, which may make Spread Trading a cheaper way to gain exposure to equities than trading physical shares.
No physical settlement
Spread Trading never requires physical settlement. Trades are always settled in cash. For example, you will never have to buy physical shares or deliver physical coffee to settle a trade. Conversely, many options, warrants and futures require physical settlement.
Opportunity to go short as well as long
You can go short as well as long on any financial instrument which means that you can benefit from both a rising and falling market. “Going long” means to buy an instrument with the intention of selling it back at a later date, if you believe the price is going to rise. “Going short” means to sell a financial instrument that you do not own, in order to buy this back at a later date if you believe the price is going to fall.
Limit your risks
Spread Co offers you a stand-alone type of trading account called the ‘Limited Risk Account’. This type of account provides you with an additional feature where an automatic guaranteed stop order will be created whenever you place a long or short trade. The guaranteed stop order limits the worst case scenario for an open trade and eliminates the risk of any price gapping. Whether the market moves up or down, the protection from this order holds. In addition, you are able to place guaranteed stop orders when you are a Standard Account holder on trades that you select.
Trade in One Currency
You can choose to open your trading account in your preferred currency from a choice of Sterling, US dollars or Euros. You can trade all international markets in your preferred currency and you do not have to worry about costly foreign exchange conversion rates or about holding multi-currency ledgers.
Financial Spread Betting Charges
Commissions
Spread Co does not charge you commissions for opening or closing a Spread Trade. The prices quoted by Spread Co on the trading platform or over the telephone are live prices and include any price adjustments from the underlying market prices to cover our fees. This creates price transparency, giving you efficient execution on a given trading instrument at the spreads you can see in front of you, which are updated in real-time.
Financing
Spread Trading is traded on margin and therefore utilises leverage. The leverage embedded in each Spread Trading contract varies depending on the financial instrument that is being bought or sold. Financing is the cost of borrowing or lending that is attributable to an open position. It is calculated on equities, indices and commodities trades that are held open overnight. Trades that are opened and closed on the same day do not attract financing. For each day you hold an open position, Spread Co will adjust the price to account for any financing of the nominal trade. These financing cash flows (debits or credits) are applied to the open trade automatically and reflected in the price adjustment at the end of the trading day (assuming the trade is not closed before the end of the day). Typically if you have gone long (bought an instrument), you will incur a financing charge. Similarly if you have gone short (sold an instrument), you may receive a financing credit.
Rollover Adjustment
For foreign exchange trades you will need to pay rollover interest charges if you go short the currency with the higher interest rate in the pair and you will earn rollover credits if you go long the currency with the higher interest rate in the pair. Foreign exchange rollover takes place when the settlement of a trade is rolled forward to the next value date with the cost of this process being based on the interest rate differential between the two currencies. For each day you hold an open position, Spread Co will adjust the price to account for any rollover adjustment. These rollover adjustment to cash flows (debits or credits) are applied to the open trade automatically and reflected in the price adjustment at the end of the trading day (assuming the open position is not closed before the end of the day).
Corporate Actions
If you Spread Trade on individual equities, you will be entitled to corporate actions such as dividends. Spread Co will make adjustments to trades that are open at the close of business the day prior to the ex-dividend event. If you have gone long (bought), you will receive a dividend credit (less a charge by Spread Co). This receipt will be adjusted into the price at which you first entered the trade. Similarly if you have gone short (sold), you will be charged the dividend payment. Again your trade price will be adjusted to reflect this payment.
Our Spread betting Platform - Saturn Trader
Spread Co's technology
We believe our technology is second to none. Spread Co's trading systems have been built by some of the leading specialists in the field and are specifically designed to overcome some of the constraints you may find with some of our competitors' technology. Our technical team has a combined 35 years experience in building real time trading platforms. We pride ourselves on our superior trading platform and delivering a great trading experience for our clients.
Trading Features
- Live pricing on a full range of different markets and instruments.
- Instant execution and a range of working orders including Good until end of day, Good until cancelled and contingent orders, Stop and Limit orders.
- A faster, more intuitive trading screen that gives you the same efficient access to the markets you want to trade as a professional trader might have.
- Choice of single position or consolidated position trading accounts (we have found this is particularly favoured by our clients in the Middle East).
- Choice of currency as base currency for trading purposes.
Trading Platforms
- Two trading platforms are available, A newly advanced browser based application for use anywhere, and a downloadable application for higher performance, multi-monitor trading.
- All systems are continually evolving and updated to allow users to experience a better trading environment than any other system.
- Fully customisable trading platforms so you can choose how you want to lay out your trading front-ends, both as browser based and downloadable applications. If you prefer to use the default versions that we offer, that is also fine of course.
- Full system stability so you experience a reliable and enjoyable service.
Information
- Full information on your trading and order execution: daily and monthly statements by email and available through the trading system itself.
- Full user guides for you on how to use the Spread Co system, where to turn to for help and answering any questions you may have.
Getting Started With Spread Co Financial Spread Betting - UK
Applying for a Spread Co account is very straightforward. Once you've farmiliarised yourself with the risks involved, click here to access our secure online application (it shouldn't take more than a few minutes to complete). You'll then be contacted by someone from our account opening team who will provide you with your new account details and information on funding your account. To get started now, click the apply button below to access our 100% secure online application form.
T: +44 (0)1923 832 682 | F: +44 (0)1923 845 308 | E: customerservices@spreadco.com
RISK WARNING: Contracts for Difference, margin Foreign Exchange trading and Spread Betting carry a high degree of risk to your capital and it is possible to lose more than your initial investment. Only speculate with money you can afford to lose. These products may not be suitable for all investors, therefore ensure you fully understand the risks involved, and seek independent advice if necessary. *Tax laws are subject to change.
© Spread Co Limited. All Rights Reserved. Spread Co Ltd is a limited liability company registered in England and Wales with its registered office at 22 Bruton Street, London, W1J 6QE. Company No. 05614477. Spread Co Limited is authorised and regulated by the Financial Services Authority. Register No. 446677.
© Spread Co. All rights reserved.
