Spread Betting and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 55.5% of retail investor accounts lose money when trading Spread Betting and CFDs with this provider. You should consider whether you understand how Spread Betting and 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
For consolidated positions accounts, the liquidation engine will cut the open position with the largest margin requirement. A liquidation trade will be created to close the open position at market price. Positions will be automatically matched based on a FIFO basis.
For single positions accounts, the liquidation engine will create a new liquidation trade thereby reducing the open position to zero. The new open position (liquidation trade) is added to the open position list on the open position blotter along with the original trade. Open positions which create zero exposure are not matched. This is left to the discretion of the position holders.
The fundamental purpose of Single Position accounts is to allow the position holders to manually select the open positions he wants to take profits/losses on as opposed to the trading platform automatically matching corresponding open positions in the same instrument.
Your trading account is subjected to a liquidation process if your account valuation falls below a percentage of the margin requirement (liquidation level) which is required to support your open positions.
If you are on a margin call, you must top up your account with sufficient funds to keep the position open, or close your open positions to reduce your margin requirement.
The liquidation process will stop only when your account equity is more than the margin requirement on your remaining positions.
The open positions with the largest margin requirement will be liquidated first.
No you will not be charged extra if you get liquidated.
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
With our platforms you can trade wherever you are – at home, in the office, or when you’re out and about.
Some companies will charge you to hold a short index position. At Spread Co we won’t.
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