Spread Betting vs CFD Trading reviews

Akinozragore

Active member
125 9
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
8,176 1,240
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.
 

Akinozragore

Active member
125 9
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
8,176 1,240
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.
 

Akinozragore

Active member
125 9
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.
 

Akinozragore

Active member
125 9
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.
 

Akinozragore

Active member
125 9
I don’t know really, cause I use micro so far. But why in a world would anyone need a dedicated account manager?
 

Akinozragore

Active member
125 9
:D That's a funny joke. Competitive advantage of a dealing desk broker... :)
I don't think that many people have suffered or went negative because of that issue with oil futures. It was an expiring contract with very little volume in there. Futures traders don't really trade them on the expiration date and roll to the next one in advance, as soon as volumes get bigger there. And volatility is always an opportunity for those who can manage risks properly.
It would be a mistake to think that regulated entities like Chicago Exchange and thier supervisors didn't think of possible ouotcomes and solutions to those.
 

Aramtant

Junior member
39 2
I don't quite get it. Is Trade.com a recently emerged broker? In this case why even discuss it here? Broker with under 3-5 years of a corporate history can't be trusted for sure.
 

Aramtant

Junior member
39 2
I don't see a problem here. That's the good part of working on a DMA account via introducing broker, like they offer to do at Tradecom. All the technical part of trading will be on IB, but all the communication and other customer-broker relationship is the responsibility of tradecom. You can set up all the communication with their suppor if you don't like IB's.
 

Powter

Junior member
14 0
Think of it as a game of betting, but the bet is internationally recognized. For me, this is an indispensable market, because if you don't want to make a profit then others will make a profit too. and it keeps like that never stopping.
 
 
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