Spread Betting vs CFD Trading reviews

Akinozragore

Active member
118 7
To tell the truth I've always considered spread-betting to be a so-so investment of time and money. Mostly because I didn't trust any brokerages that offer this type of trading only.

I trade CFDs and even withdraw some profits from time to time, which gives me some hope to move to the upper league of traders. My CFD broker has recently introduced some new features: long-term investments, pre-IPOs, etc. and they also offer spread-betting now. This made me reconsider spread-betting as a serious type of activity. I know the broker has got CySEc license, its regulated, authorised, passes audit and all is good here with that kind of paperwork. However, isn't it weird that broker gets focused on so many different directions? Why would they do that? If everything worked fine with CFDs with Trade.com does this mean it's safe to spread-bet here as well? I'd like to try and it looks more simple than usual CFD trading but still hesitate.

What do you all think of spreadbetting with Trade.com? worth trying?
 

tomorton

Legendary member
8,092 1,196
I'm pretty sure SB is simpler and therefore lower cost for the broker than CFD's.

Which doesn't make it a bad deal for the SB client, though short-term traders say that the SB spreads on scalping time-frames will kill your profitability. SB is simple for someone to pick up and understand but its main advantage over CFD's in the UK is that its tax-free, you don't even need to log or report your trades or profit.

SB used to be filled with scam companies but its a lot better regulated now. If you're happy with the broker in question they should be safe enough to try out.
 

Nuadarne

Member
89 10
I also think spread-betting is easier, but I'm not sure it's more profitable in a long run than CFDs. I think people of a gambler-like mindset choose spread-betting more often. Hope this is not what you are interested in - turning trading into a game. but if you just want some diversity in your trading, I don't see a single reason why you can't spread-bet with the same brokerage that you trust. This is rather difficult to find a decent spread-betting company. They often get very sleeky when it comes to withdrawal of profits. Licensed brokerage with a positive withdrawal history sounds like not-so-bad idea in this light.
 

Akinozragore

Active member
118 7
I'm grateful for your opinion! I had a similar feeling about spread-betting industry. I thought its a type of gambling. I've spoken to some people from inside the industry. They think that this is just like in sport bets. Some people come to get high on emotions, for others its a hobby and a small percentage considers it as a serious source of income. I do have some hope Trade.com assumes more serious approach to spread-betting as this company has got really nice reputation. I think the best decision is to give it a try and see for myself whether its worth attention or not.
 

tomorton

Legendary member
8,092 1,196
Spread-betting is only like gambling if you approach it like a gambler. If you approach it like a trader you will find no difference apart from the fees and tax structure. SB's inherent simplicity attracts amateurs but that does not mean it is either harder/easier or more risky/less risky than any other form of trading.
 

Sharim

Member
67 5
In Europe Trade.com is probably going to be one of the options you can consider for spread-betting and CFDs trading. I only use CFDs, but the newsletter said SB is also offered for over 1000 assets. The company is regulated by CySec and FSA, so good for both UK and all EU residents. I don't know about SB commissions though, you'll have to find out yourself.
 

Akinozragore

Active member
118 7
Spread-betting is only like gambling if you approach it like a gambler. If you approach it like a trader you will find no difference apart from the fees and tax structure. SB's inherent simplicity attracts amateurs but that does not mean it is either harder/easier or more risky/less risky than any other form of trading.
You’ve certainly got a point here. Gambling approach can liquidate your capital fast enough no matter what you trade. I was afraid spread-betting has got a really bad reputation like binaries, but looks like I was mistaken here. So basically here with SB we have larger costs of trading (wider spreads) opposed to zero taxes. So broker’s clients can choose the asset to trade depending on their tax preferences and probably the trading style as well.
Thank you as well for pointing out the issue with scalping timeframes. This also makes sense. I combine 5 min charts with some analysis on 1H, which is far from scalping in my opinion, so all should be fine.
 

Nuadarne

Member
89 10
If you are fine trading CFDs with the same broker, why would you ever need switching to SB? As far as I’m concerned the difference is not that huge, neither in trading methods, nor in taxation. I think if something works fine in trading, you better leave it like that and don’t touch :)
 
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Akinozragore

Active member
118 7
Huh, I can understand you point for sure. Well, to tell the truth I really want to get some new experience with SB. Just give it a try. In addition it has got no stamp tax in comparison to CFDs. If I can trade same but pay less taxes, won’t it be great? I’m not planning to quit CFD trading though until I’m completely sure my trading approach works same with both and SB is really a bit more favorable in terms of taxation.
 

Sharim

Member
67 5
Even though I like SB myself, I don’t think you will really feel much difference in taxes using SB instead of CFDs. Unless you a making millions for sure. In this case every 0.1% will matter LOL.
 

Adoralmeena

Member
68 7
Having a look at Trade.com conditions I find the gap between spread for micro accounts and silver account with at least $1000 depo to be really large. This is possibly what makes customers go for silver accounts. However, I’m really curious whether the other differences in account types can be anyhow helpful. What does the account manager do? Does anyone use those morning analytics?
 

Akinozragore

Active member
118 7
I don’t know really, cause I use micro so far. But why in a world would anyone need a dedicated account manager?
 

Sharim

Member
67 5
I only find account manager helpful cause I always know whom to address with my questions and requests. This is always the same person and in fact the guy helps by offering some alternatives to the assets I want to trade. To tell the truth I’ve never had an intention to use daily market analysis reports for trading so can’t really say if they are helpful or not. I don’t believe this can anyhow help.
 

Adoralmeena

Member
68 7
Thanks for the answer! I’ve once had a long-term access to daily reports of GRI and it helped in fact. I wouldn’t say anyone could make much profits by blindly following the instructions (there were no determined instructions there actually), but the report included the important levels of support and resistance for the new trading session and it was really interesting to compare my own levels with the ones determined by the world class level analytics.
 
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