Use your spread betting and or CFD trading account to go long or short on the price market movements and get exposure to the underlying assets. The tax-free1 feature has made spread betting a popular choice in the UK. When spread betting, it can be easier to manage position sizes since you’d be trading per point vs per contract or lot, which is what would happen when you trade CFDs.
You don’t have to pay capital gains tax when trading on spread bets. And gains you make when trading CFDs can be used to offset losses you may incur. You also don’t pay stamp duty when trading spread bets or CFDs because you won’t take ownership of the underlying assets.1
Spread bets and CFDs are leveraged products, meaning you can open a position with an initial deposit – called margin – which is a fraction of the full value of your position. The profits and losses you make will still be based on the full size of your position, which can outweigh your margin. Trading with leverage has associated risks as compared to non-leveraged products like share dealing. Remember to manage your risk carefully.
With us, you can use your spread betting account to trade forwards in the shares, forex and ETF markets as well as futures when trading commodities and indices. With your CFD trading account, you can trade the spot price, futures and options of shares, ETFs, commodities, forex and indices markets.
If you’d like to trade intra-day, then you’ll find spread betting and CFD trading accounts are better suited for you. Both accounts are also suitable for trading in the short and medium term.
