more about the
advantages of spread
betting and apply
account at Capital Spreads
Capital Spreads is a division of London Capital Group,
regulated in the UK by the FCA .
Advantages of spread betting explained
Tax free trading**
One of the key advatages of spread betting in the UK is that profits
from financial spread betting are free from capital
gains and income tax,
and since you you only take a position on whether a market will rise or
fall and you do not actually purchase the underlying assets - there is
no stamp duty
**Tax Law can change and may differ
in other jurisdictions outside the
No commission or brokers fees
Financial spread betting
companies make their profits from the spreads (the difference
the buy and sell prices). That means there are no dealing costs or
brokers fees to pay on trades. Coupled with the benefits of tax free
trading**, this can amount to a substantial saving over traditional
stock broker dealing and in many cases, could be the difference between
making a profit or a loss.
Go long or short
Another one of the main advantages of spread betting
is the ability to short (sell) the market. This makes it possible for
you to profit from the stock markets whether they are rising or falling.
your portfolio against falling markets
investors use financial spread betting as a means of hedging their
portfolios. You may have a stock holding that you have as a long term
investment and is falling in value in the short term but you do not
want to sell it, It is possible to counter balance the decrease in
value of your shares by selling the equivalent value of your holding
through online spread betting.
online or by telephone
addition to a traditional telephone dealing service, online spread
betting offers a very convenient option for traders because you can
have full access to your trading account and have the flexibility to
fine tune your timing so that you can get the best prices to open or
close trades. Set or adjust orders and stop loss levels at your
convenience and access trading history.
where ever you are. In addition to a traditional telephone dealing
service and online platform, most spread betting companies now offer
convenience of a mobile trading platform.
Trade on margin
Margin is 'leverage' or 'gearing' - Financial spread betting is a
margined product and means you are only required to deposit a
proportion of the full value of the transaction.
This frees up capital to be invested elsewhere but it is important to
be aware that trading on margin can be very risky. In the same way that
profits can be enhanced proportionately due to the gearing, losses will
also be magnified when the markets move against you and it is
possible to lose more that your initial stake.