SB vs CFD

[OfficiallyPB]

I have both opened a SB & CFD account with IG. I haven't done too bad, but I am struggling to decide what to use with them. Plus i am still a newbie...

SB - easier to understand, as its per point. Tax free...seems good for someone with small capital. Prices are different too the market because of the spread.

CFD - seems the closes to a real trading floor. You get CGT however not sure how much that would effect your capital. But this seems a better option if you want to go long over a few weeks / months. Prices are market prices...

I have attached both my accounts positions.

Ill be more into stocks instead of trying to get quick gains from FX or the FTSE. So going long for a few weeks could be a benifit, for that reason i think CFD will be more suited to me...

But i understand SB more, Guess what i am trying to ask...is whats the hidden charges etc etc

 

[peakoil]

Just want to add that there is a popular (mis/)conception that spread betting is most useful for short term plays. Please know that there are, nonetheless, plenty of us who use spread betting on longer contracts (current examples being March and June '14). As you're probably aware by now, compared to paying the rolling spread charges each night, most are agreed - after a few weeks you'll also find it becomes better to avail of the longer SB contracts.

Anyway, ATEOTD, at the risk of sounding clichéd... this is surely a case of DYOR, i.e., only you know your own needs & siutuation, but there's nothing wrong with experimenting with different contract lengths, as long as you keep an eye on costs, and ultimately you must choose what's best for you, according to your own mkt strategies. Good luck!

 

[Hate2Lose]

I have both opened a SB & CFD account with IG. I haven't done too bad, but I am struggling to decide what to use with them. Plus i am still a newbie...

SB - easier to understand, as its per point. Tax free...seems good for someone with small capital. Prices are different too the market because of the spread.

CFD - seems the closes to a real trading floor. You get CGT however not sure how much that would effect your capital. But this seems a better option if you want to go long over a few weeks / months. Prices are market prices...

I have attached both my accounts positions.

Ill be more into stocks instead of trying to get quick gains from FX or the FTSE. So going long for a few weeks could be a benifit, for that reason i think CFD will be more suited to me...

But i understand SB more, Guess what i am trying to ask...is whats the hidden charges etc etc

I agree. I have a SB account but rarely use it. CFD pricing wins hands down – but be careful which firm you use. Stick to one offering direct market access.

 

[OfficiallyPB]

I agree. I have a SB account but rarely use it. CFD pricing wins hands down – but be careful which firm you use. Stick to one offering direct market access.

ill be going IG regardless of which trading type i use. Theyre support on twitter and email is brilliant, theyre system is also pretty handy.

Can you also tell me why CFD wins hands down?

Looking at both my SB & CFD accounts side by side, i think i prefer CFD as your P&L moves with the underlying market price where as SB moves with the points and spread that the broker gives you.

But whats complicated about CFD is the commisions / CGT / and tech know how in the DMA orders. Are the commissions though, simply the same as the spread in SB

 

[luckystrike23]

Spread Betting versus CFDs http://www.contracts-for-difference.com/compare/cfds-vs-spread-betting.html

 

[timsk]

. . . And to save you going beyond the virtual walls of T2W, we have our very own FAQ on this topic: What are the Pros and Cons of Spread Betting Vs CFDs?

 

[Spread-Bettor]

When it comes to CGT, the gains that one gets from financial spread betting are tax free. The losses that one incurs on the spread bets are not tax deductible, whereas the losses that are incurred on the CFD trading can be offset by the profits that are made in future. More on this topic, Spread Betting vs CFDs

Green pips you'all

 

[gle101]

When it comes to CGT, the gains that one gets from financial spread betting are tax free. The losses that one incurs on the spread bets are not tax deductible, whereas the losses that are incurred on the CFD trading can be offset by the profits that are made in future. More on this topic, Spread Betting vs CFDs

Green pips you'all

In Germany and Sweden for example SB is not tax free and losses deductible up to a stipulated percentage, but I guess you are referring mainly to the UK residents.

 

[Spread-Bettor]

In Germany and Sweden for example SB is not tax free and losses deductible up to a stipulated percentage, but I guess you are referring mainly to the UK residents.

Yep, basically referring to UK citizens, but thanks for the extra infos

 

[Spread-Bettor]

Yes, financial spread betting is tax free only in the UK and the Republic of Ireland.