Spread Betting What Is Spread Betting?Advantages of Spread Betting Is Spread Betting for me?Spread Betting Risk Management Difference Between CFDs and Spread Betting Switch to Spread Co Start Spread Betting

Difference Between CFDs and Spread Betting

Spread betting and CFDs share a number of common features and have some key differences too.

With Spread Co you can trade markets with spread bets or Contracts for Differences (CFDs). Whichever one you choose, you can trade on equities, indices, currencies and commodities. And with both you’ll be trading on margin, which can allow you up to 200 times leverage. Before you begin trading you should get to know the differences and similarities between these two methods.

CFD vs Spread Betting

Key similarities

Ownership – you don’t physically own the assets you’re trading
Stamp duty* – there’s no stamp duty payable on CFDs or spread betting
Margin trading – you only need to stake a proportion of the value of the trade
Choice – with both products you can trade in a wide range of assets including company shares, indices, currencies and commodities
Go long or short – you can trade on the assumption that values will rise or fall
No commission – except when you trade equities, when commission is included in the spread

Key differences

	Spread Betting	CFDs

Tax on gains*	No Capital Gains Tax on any profits.	Capital Gains Tax liability on profits.



Offset losses*	You can't offset any losses against gains made elsewhere.	Any losses can be offset against other gains for Capital Gains Tax.

At a glance

	Spread Betting	CFDs

Range of markets	Indices, Equities, Commodities, FX, ETFs, ADRs	Indices, Equities, Commodities, FX, ETFs, ADRs



Commission	No additional commission will be charged to your account, everything is in the spread.	No additional commission will be charged to your account, everything is in the spread.



Minimum trade	£1 per point	Indices: 1 CFD Equities: Varies - from 1 CFD Commodities: Varies - from 10 CFDs FX: 10,000 CFDs



Platforms	Mobile, tablet, web	Mobile, tablet, web



Risk management	Stop loss, guaranteed stop loss, limit order	Stop loss, guaranteed stop loss, limit order



Demo account	Yes	Yes



Stamp duty	No	No



24 hour dealing	Yes	Yes



Capital Gains Tax on profits	No	Yes

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