Financial Spread Betting
Financial Spread Betting is a margined (leveraged) investment vehicle allowing investors to invest and speculate on the financial markets. Private investors open tens of thousands of financial spread betting accounts a month to take advantage of the current tax policy (financial spread betting is CGT and income tax free) and the leverage provided by the financial spread betting. As spread betting grows in popularity financial spread betting companies compete vigorously to attract new customers offering tighter spreads and better customer service.
Spread Betting Brokers |
FTSE100 Spread |
DJ30 Spread |
GBP/USD Spread |
Brent Crude Spread |
FTSE Shares Spread |
Capital Spreads | 1 (5) | 3 | 2 | 5 | 0.10% |
Financial Spreads | 1 (2) | 4 | 3 | 5 | 0.10% |
IG Index | 2 (6) | 4 (6) | 3 | 5 | 0.10% |
Compare Dozens of Financial Spread Betting Accounts | |||||
Besides being of the cheapest investment options in the UK it gives private investors a wide range of markets to trade. Although range of markets can vary between the brokers all of them provide market indices, individual shares, commodities, forex, interest rates and many more.
Financial Spread Betting Benefits
- No Stamp Duty. Like CFDs financial spread betting is a derived product and no stamp duty is applied when you buy or sell shares.
- Low Capital Requirements. It is a margined (leveraged) product giving investors an opportunity to buy shares on margin. For example, if you were to buy 100 shares at 100p each you would need £100 to buy shares, whereas with spread betting as low as 5% margin would be enough thus you would need only £5 to buy the same amount of shares.
- Ability to Go Short or Long. Since financial spread betting is a derived product it lets investors sell as well as buy shares, thus giving private investors opportunity to make profit in the falling markets.
- Huge Range of Markets. It provides private investors with access to financial markets around the world including America, UK, Continental Europe, Asia and much more. Besides that with spread betting investors can speculate on commodities and forex markets including oil, wheat, gas, interest rates, bonds and more.
- No Capital Gains Tax. It has one very important advantage over other investment options as it's exempt from Capital Gains Tax (CGT). No matter how much you make with financial spread betting you don't pay any tax, although trading losses cannot be offset against your tax bill.
Additional Information and Resources
- Compare Dozens of Financial Spread Betting Accounts. Looking for competitive spread betting account? Use our comprehensive and independent broker comparison service to find a cheap and reliable financial spread betting broker.
- Financial Spread Betting Guide. Read our extensive and easy-to-read investment guide where you can learn more about benefits and disadvantages, how spread betting works and much more.
- Financial Spread Betting Books. Still looking for more help on spread betting? Visit our book section where you will find the best financial spread betting books available on the market.
It is the most efficient and effective investment option for the retail investors to take advantage of rising and falling markets. It gives small investors flexibility and necessary leverage to fully take advantage of short market swings. Most importantly, it is tax free, thus you keep your profits away from the tax man.
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Risk Warning: Financial Spread Betting is a leveraged product and carries 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.