CFD and spread betting accounts are similar, but there are some key differences:

• With spread betting you trade a ‘stake per point’ e.g. £2 per point on the FTSE. With CFD trading you trade a ‘lot’ size, say 10,000 shares in BP, similar to traditional dealing.
• Currently spread betting profits are not subject to Capital Gains Tax, CFD trading profits are.*
• Spread betting charges are included in the ‘spread’, CFD trades normally carry a small commission charge, but with Spread Co this is also included in the ‘spread’, with no additional charges.

For CFD accounts, there are also two types of account to choose from:

A Consolidated Account nets positions off against each other so you can partially, or completely close a position by making an opposing trade.

A Single Positions Account allows you to simultaneously be long and short in the same market at the same time and does not net off open positions unless you specifically choose to do so.

*Tax treatment depends on your individual circumstances and tax laws can change or may differ in a jurisdiction other than the UK.

To apply for a CFD account, click here.

For spread betting there are two choices of account types:

A ‘Standard Account’ gives you the option to place stop orders on your trades (standard or guaranteed stops). Guaranteed stops offer protection from a market ‘gapping’ against you for a small extra premium. A standard account nets off your long and short trades in the same instrument, save for those trades with an attached Guaranteed Stop Order, which do not automatically net off long and short positions and must be closed by you or by a limit or stop order.

A ‘Limited Risk Account’ automatically places a guaranteed stop on every trade you place, enabling complete control over your risk and exposure to market gaps. Long and short trades are not automatically netted off and must be closed by you manually or by a limit or stop order.

To apply for a Spread Betting account, click here.