CFD vs Spread Betting

GCC · Mar 12, 2009

I am new to trading, I have a question regarding CFD:

How is CFD different from spread betting?

To me,

- both are speculating without the actual instruments,
- both are "trading against" the brokers,
- both have similar adavantages like high leverage and execution speed.

So, is there big difference between the two?

KillPhil08 · Mar 12, 2009

tax and where you live in the world decides whether your allowed to use spreadbetting or not(i think).

do a search, there are lots of threads about this.

GCC · Mar 12, 2009

KillPhil08 said:
tax and where you live in the world decides whether your allowed to use spreadbetting or not(i think).

do a search, there are lots of threads about this.

Thanks, I will search the forum.

But judging from what you say, do you mean that spread betting is better in the sense that it evades tax, as long as the place you live allow spread betting?

KillPhil08 · Mar 12, 2009

Exactly.

dodge149 · Jun 26, 2009

Spread Betting is really just a punt on which way you believe a market is heading, whereas CFD's you lay down a (e.g) 10% margin... so would only need to put down £100 for say a £1000 position. CFD's are also liable to capital gains tax, whilst spread betting is classified as betting and therefore is tax free (in the UK anyway).

GCC · Jun 28, 2009

dodge149 said:
Spread Betting is really just a punt on which way you believe a market is heading, whereas CFD's you lay down a (e.g) 10% margin... so would only need to put down £100 for say a £1000 position. CFD's are also liable to capital gains tax, whilst spread betting is classified as betting and therefore is tax free (in the UK anyway).

Thanks for the reply.

luckystrike23 · Jul 8, 2009

CFDs and SpreadBetting Compared

CFD vs Spread Betting

GCC

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