Spread Bettings vs CFD's

[gekkosluvchild]

Hello,

I'm living overseas so i'm thinking i wont have to pay tax on CFD's, so tax would not be an issue right ? I'm trying to weigh up the costs of cfd's vs spread betting for larger caps so if say holding Tesco for a few months which would be cheaper with regards to costs ?

I'm also looking to spread bet small caps, but with regards to buy and holding for a matter of up to possible months when does it become more economical cost wise to use a quarterly bet rather than a daily rolling bet ?


Cheers

 

[Chris H CFDSB]

Hello,

I'm living overseas so i'm thinking i wont have to pay tax on CFD's, so tax would not be an issue right ?

I think it all depends on your tax liabilities wherever you are living.

 

[Hate2Lose]

Hello,

I'm living overseas so i'm thinking i wont have to pay tax on CFD's, so tax would not be an issue right ? I'm trying to weigh up the costs of cfd's vs spread betting for larger caps so if say holding Tesco for a few months which would be cheaper with regards to costs ?

I'm also looking to spread bet small caps, but with regards to buy and holding for a matter of up to possible months when does it become more economical cost wise to use a quarterly bet rather than a daily rolling bet ?


Cheers

CFDs are subject to cap gains tax in the UK, so I suspect it will depend on the tax laws where you are currently (of course, I’m no expert!).

Financing will be the same for CFDs and spreads, but it depends on the provider – can vary very slightly between them.

I stick to CFDs and I find it more cost effective. You pay a commission rather than a wider spread, so it’s more transparent. I’ve also found pricing to be much better – if you have DMA CFDs, you get access to the underlying market rather than the ‘bookie’s market’ that SB firms provide, with questionable fills and pricing.

Of course, it depends on size and what you’re trading – I still have an SB account for some things. Larger trades are harder to get filled (more exit than entry), you need an order book for these – make sure you get a good price.

Hope it helps!

 

[luckystrike23]

this might help; it explains how taxes are accounted for with CFD losses http://www.contracts-for-difference.com/Tax-claims.html