Trade Royal Bank of Scotland Group Shares

Royal Bank of Scotland Group (RBS.L)

About

The Royal Bank of Scotland Group has grown from small beginnings nearly 300 years ago to become one of the largest financial services groups in the world. Their brands operate around the globe and down your street to provide banking services for individuals, businesses and institutions.

Industry

Banks

Website

www.rbs.com

Trading Options

Financial Spread Betting
Contracts For Difference
Share Dealing / Stockbroker

Royal Bank of Scotland Group and Market Latest News


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Royal Bank of Scotland 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 Royal Bank of Scotland Group shares (Royal Bank of Scotland Group share price is 150p). Supposedly, you think that Royal Bank of Scotland Group shares will go up by 10% in one month.

Calculations

Spread Betting

CFD

Share

Number of Shares Equivalent

13,333

13,333

667

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


Royal Bank of Scotland Group: Financial Spread Betting and Contracts For Difference (CFDs) are margined (or leveraged) products and let you go long (buy) or short (sell) with Royal Bank of Scotland 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.