Key similarities
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.
- 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

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. |
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 |