Trade London Stock Exchange Group Shares

London Stock Exchange Group (LSE.L)

About

The London Stock Exchange is one of the world’s oldest stock exchanges and their history goes back more than 300 years. Starting life in the coffee houses of 17th century London, the Exchange quickly grew to become the City’s most important financial institution.

Industry

Investment Services

Website

www.londonstockexchange.com

Trading Options

Financial Spread Betting
Contracts For Difference
Share Dealing / Stockbroker

London Stock Exchange Group and Market Latest News


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London Stock Exchange Group: Financial Spread Betting vs CFD vs Share Dealing

Table below compares Financial Spread Betting, Contract For Difference and Share Dealing trading. For simplicity we use the average brokerage fees to calculate the profit/loss if £1,000 available for investment in London Stock Exchange Group shares (London Stock Exchange Group share price is 900p). Supposedly, you think that London Stock Exchange Group shares will go up by 10% in one month.

Calculations

Spread Betting

CFD

Share

Number of Shares Equivalent

2,222

2,222

111

Shares go up by 10% in 1 month, Gross Profit

£2,000

£2,000

£100

Commission to open position (buy)

£60

£15

£12

Commission to close position (sell)

£0

£15

£12

Total Commission

£60

£30

£24

Financing for one month (5% LIBOR rate)

£108

£108

£0

Tax (20% band)

£0

£372

£15 + £5 (Stamp Duty)

Net Profit

£1,832

£1,490

£56


London Stock Exchange Group: Financial Spread Betting and Contracts For Difference (CFDs) are margined (or leveraged) products and let you go long (buy) or short (sell) with London Stock Exchange Group shares, they are more suitable for short and medium term investments and cover a wide range of markets, including shares, indices, commodities and currencies. Share investing, on the other hand, is a conservative and old way of gaining financial independence and preserving capital. Even though some stockbrokers offer credit facilities it is very rare and not popular amongst private investors.

Risk Warning: Financial Spread Betting and Contracts For Difference (CFDs) are leveraged products and carry a high level of risk to your capital. You may lose more than your initial investment. Share price can go down as well as up and returns on investments are not guaranteed.