Spread Bet or CFD?

[The Optimist]

I am relatively new to TA and was wondering if anyone had any views on which is better - spread betting or CFDs.

I have used spread betting for indices but feel that they are also reading the way the market is going and therefore the price you can go in at reflects this and not the current value of the index. Is this the same for CFDs.

Also with spread betting you can set a stop loss but it doesn't move with the index requiring a constant watch during the day. BarNov's system using stop losses would require to be constantly monitored or do CFDs allow this to be done automatically.

Any views most welcome

 

[Chaz]

CFD's Or spread Betting

Depending on who you speak to, most people seem to prefer spread betting, purely because it is tax free.
problem with spread betting is, that you are always out of pocket, because of the spread. CFD's are bought at normal market spreads, no stamp duty, and u can have 10% stop loss guaranteed. same as S. betting. sometime on a CFD a movement of 5-10p will show you a profit on large qty of shares , whereas SBETTING will not, beacuse you will have just covered your spread..
I started using Sbetting, now on CFD's...free level 2, live prices..can ask for much more.

£5000 will open a limited risk account with IG Index.

 

[SP23]

Is that IGs CFDs ?

 

[Chaz]

yes ig index..theye run semniars every 2 weeks to explain CFD's..

easy to work..very simple....

 

[ChartMan]

Im not aware of any systems that implement "sliding stops".

 

[Chaz]

with the cfd's u can move your marker up or down..as long it is 10% away from the cash price

 

[chaders]

HI, just joined this bb and am with IG spreadbetting, but I am thinking of changing to CFDs. Are you saying that IG CFDs are subject to CGT? And do they move the price ahead of the market as they do with options?

 

[Chaz]

with CFD's you buy and sell your shares at the market price. there is no additional spread other than the normal market one..

with IG cfd account, you get free live prices and level 2

 

[duden]

CFDs with lower limit

Hi,
Is there any alternative for CFDs other than IGN with their £10000 minimum deal. That's a bit heavy for me now! Are DealforFree any good. Just noticed they've got a one month trial.

 

[Chaz]

ig index now offer a limited risk account which is a min of £5000.00. This allows for a guaranteed stop loss of 10% from strike price and a bit more for nasdaq.
the minimum deal size is £5000...ring IG index on 0800 195 3400 and speak to Winston Stewart and tell him Chas Shukla recommended you...he will explain all

chas

 

[The Optimist]

Thanks for all the points above.

Am I right in thinking that there are no spread betting companies trading the FTSE 250 or FTSE Small Cap?

If not then it looks like CFDs is the way to go for the above.

 

[Cigar]

I'm thinking of setting up a CFD account. Has anyone any views which is the best company , GNI or IG, both offer level 2.

Is the level of margin on a deal compulsary. Can I fund the purchase totally from my own money or must I use their margin money?

I see minimum account size but not deal sizes. While I'm learning, can I deal in smaller amounts than £10k (£5k for IG)?

thanks

 

[tunna]

spread v Cfds

profits made on spread bets aren't liable for capital gains tax, those made on Stocks and shares or CFDs are. This could be a huge saving of up to 40% depending on your capital gains tax liability and tax thresholds