CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 63.1% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
Some of the questions we’re asked most often about spread betting, CFDs and trading platforms.
Our FAQs are designed to provide a better understanding of our different account types, account opening information, account deposit and withdrawal information and also technical troubleshooting.
We will process your application within 24 hours, often much sooner (Monday – Friday). You will be notified of the status of your application by email. On occasions, you may need to provide us with additional identification documentation to support your application and we will let you know by email if this is the case.
It is a requirement of UK financial services regulator, the Financial Conduct Authority, that we verify your identity. In order for us to do so you will need to provide us with the following documentation:
One of the following:
One of the following, to be dated within last three months:
*Please note that mobile phone and internet statements are not acceptable.
Please do not send original documents.
Copies from non-UK or non-EEA countries must be certified by one of the following:
The photocopied documents have to be certified with the wording: “Certified as a true and complete copy of the original”. The “certifier” has to sign and date the documents, also providing their full name and contact details.
The documents also have to be stamped with the certifier/company’s official stamp.
You can apply online. Our online application is easy to complete and should only take you a few minutes. We will need some personal details and information on your trading experience.
If you have any questions about opening an account, please call +44 (0) 1923 832659.
Alternatively, you can email us here.
We will need to see further documents if we have not been able to verify your identity and/or address at the time of application.
Yes, your open positions are marked-to-market with real time bid/offer prices.
There are two main ways in which you can profit from spread betting:
The two main ways to lose through spread betting:
You may hold on to your trades for as long as you like (provided your trade is not liquidated). This is subject to a period of three years.
When you are holding a “long” trade on an individual equity, you will receive a credit adjustment in your trading account if a dividend is issued on the physical equity. The adjustment is equivalent to 90% of the dividend payment due on the underlying equities. On the other hand, if you are holding a “short” trade on an individual equity, there will be a debit adjustment which is equivalent to 100% of the dividend. Other corporation actions such as bonuses and stock splits will also be adjusted according to the underlying equities.
No. Spread bets are cash settled.
Financial spread betting allows you, an investor, to trade on the directional movement of the price of a financial instrument. You will have to indicate an amount you want to trade on each point movement. For each point movement that the price of the financial instrument moves in your favour, you make a profit multiple of your stake. If the price of the financial instrument moves against you, you will make a loss equivalent to your stake multiplied by the number of points the instrument moves against you.
When you trade on the price of a financial instrument, you do not actually own the underlying asset. However, you are entitled to some of the benefits, such as dividends, rights issues etc, as if you were an owner of the underlying asset. The main difference is that you will not receive any voting rights on individual equities.
Every night at 10pm London time all positions are Marked to Market against the market closing price. Either a debit or credit will be applied to your account depending on whether you are in a profit or loss. Your daily statement will clearly show whether your positions were marked against the market closing price. Example:
Opening trade – Sell 5 UK100 MAR 17 @ 6497
Market closing price – 6513
6513 – 6497 = 16 points
16 multiplied by stake (£5/point) = £80 Debit
The following business day the short position is held open with a closing price of 6497.
At £5/point a gain of 16 points would mean a credit of £80 would be applied to the account.
No other charges apply for short index positions. In the event this position was a ‘long’ the daily Financing charge would be applied which would show as a separate transaction.
Please be assured that your total PnL will always be calculated from your entry price against your close price multiplied by your stake.
This is to ensure that your daily statement marks and values your account at the most recent daily closing price.
You are able to view the PnL for the business day within your open positions and the total PnL from the original opening price.
When Spread Betting, are your profits tax free?
Tax treatment does however depend on the individual circumstances of each client and may be subject to change in the future
Consolidated account open positions are automatically netted off against each other. Therefore profit/loss will be realised when an opposite trade to an open position is executed. This is suitable for clients who trade a single instrument frequently.
For single positions accounts, each trade can be treated as an individual open position. When buy and sell trades in a single instrument are created, all positions are kept open and will not be netted off until the client manually closes such open positions or nets them off. This allows you to have a long term position in a product but take an opposing short term position in the opposite direction if you want to, should you spot a short term trading opportunity.
No, it is not necessary to disable/allow the pop-up blocker for trading. The software opens in a new browser. However, to access statements or reports on your account through the web based version of the trading platform, you will need to allow pop-ups from our trading websites.
Google tool bar: To allow pop-ups, log on to our trading website and click the Pop-up Blocker button. The button text will change to read ‘Pop-ups OK, indicating that the Pop-up Blocker has been disabled on that site.
You may also select ‘Tools’ from your internet browser, then select ‘Pop-up blocker’ and select ‘Turn off pop-up blocker’.
Connection to our platform is through the same communication method that secure websites use. As most organisations have these firewall ports allowed by default, there should be no need to disable any security.
If you notice anything suspicious or are asked to disable security, please do NOT and contact our Client Services team immediately +44 (0)1923 832 682