Advantages of Spread Betting
Spread Betting offers many advantages over traditional share trading and investing, including:
- Profits free from Capital Gains Tax and Stamp Duty
The profits you make from spread betting 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. - Go long or short on a multitude of global financial markets
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 betting account and they fall in value, you gain on the spread bet, offsetting what you lose on your physical share holding. - No commissions or hidden charges
All 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. - Low Margins and Tight Spreads make your money go further
When you spread bet 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 bet on equities you place a 5% margin, meaning you would only need an initial investment of £1,000 to get the same exposure. - No Currency Risk
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.
To see the differences between Spread Betting and CFDs click here.
To apply for an account now, click here.
