Spread Betting And Cfd

Cfd share dealing and stocks and shares isa accounts provided by ig markets ltd spread betting provided by ig index ltd.

Spread betting and cfd. The main difference is the way they are treated for tax spread bets are free from capital gains tax in the uk while cfds are not. Spread betting unlike cfds is free of commission fees and profits are not subject to capital gains tax. Unlike cfd trading spread betting doesn t involve trading lots of currency or a number of shares. Instead you buy or sell a certain amount of the instrument you are trading which is.

Spread betting and cfd trading are margined products and can provide similar economic benefits to investments in shares indices commodities and currencies. Spread betting and trading cfds share many characteristics but there are some key differences. A form of financial derivatives trading spread betting is popular with uk residents because profits are exempt from capital gains tax and stamp duty. Consequently the equivalent 10 per penny spread bet or 10 cfd per penny trades both require an initial margin of 1 104 5 520 x 20 as you can see cfd trading and spread betting allow you to speculate on price movements on financial instruments by putting up a modest percentage of the overall underlying value as initial margin.

Spread bets are tax free in the uk and northern ireland. Spread betting cfds provided by ig you are about to go to the hl markets section of our website. Ig is a trading name of ig markets ltd a company registered in england and wales under number 04008957 and ig index ltd a company registered in england and wales under number 01190902. Spread betting vs cfds.

Financial spread betting operates in a similar manner to a cfd except that you bet x per point on the assets price movement either up or down and then pay or receive the difference between the opening and closing price of the bet. The spread in spread betting refers to the difference between the buy or ask price and the sell or bid price. Conversely cfd losses are tax deductible and trades can be done through direct market access. Hl markets is a range of trading services designed for active and experienced investors.

Spread betting is a tax free financial derivative that enables you to speculate on the price movement of a financial marketwhat is spread betting. The key difference between spread betting and cfd trading is how they are taxed.