Spread Trading vs CFD | Spread Trading or CFDs

Spread Trading vs CFD | Why Spread Trade

No stamp duty is paid on transactions.
You do not own the shares or the underlying security and you have no voting rights.
Margin trading is used to leverage up your capital.
You can trade thousands of markets and go long or short on both.

Spread Trading is exempt from Capital Gains Tax, CFD trading is not. Tax laws are subject to change and tax treatment may depend on the individual.
Losses on CFDs can be offset against capital gains, this is not allowed with Spread Trades
When trading CFDs, you trade in a similar manner to purchasing shares – i.e. you buy 10,000 shares of BP. With Spread Trading you trade in pounds per point (or dollars/euros) – so for 10,000 shares in BP you would instead stake £100 per point movement in the share price. If BP goes up by 10p, your 10,000 shares makes £1,000, as does your Spread Trade.

Spread Trading