Advantages of Spread Trading | Why Spread Trade

The profits you make from Spread Trading are currently exempt from Capital Gains Tax (CGT) and Stamp Duty in the UK. However, tax treatment depends on your individual circumstances and tax laws can change or may differ in a jurisdiction other than the UK.

Not only can you go long (buy) any share, index, currency or commodity on our platform, but you can also sell them short, allowing you to profit from falling as well as rising markets. This can be beneficial if you are worried about the value of your share portfolio falling – if you sell the shares short via a Spread Trading account and they fall in value, you gain on the Spread Trade, offsetting what you might lose on your physical share holding.

Our dealing charges are included in the spread – there are no hidden extra costs or dealing commissions. Unlike our competitors, we do not charge you to roll an equity or index short position overnight and our long overnight rolling charges are amongst the lowest around and are clearly displayed in your statements.

When you Spread Trade you are trading on margin – what this means is that you only have to put up a small percentage of the value of the product you are trading. This allows you to utilise less capital compared to traditional methods of trading. For example, if you wanted to buy 5,000 shares of BP at £4.00 per share you would need £20,000 to purchase those shares. When you Spread Trade on equities you place a 5% margin, meaning you would only need an initial investment of £1,000 to get a similar exposure.

You can choose to open your trading account in your preferred currency from a choice of GBP, USD 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.