Compared to traditional trading, spread betting offers numerous advantages:
In the UK, profits that are generated from spread betting are exempted from capital gains taxes. Be informed though that tax laws are subject to change.
No stamp duty
There’s no need for you to pay stamp duty since you are not owning the underlying product but rather taking a position based on your speculation.
Access to a wide range of markets
This form of leveraged trading will allow you to access a diverse range of markets including shares, currency pairs, indices and commodities. You may refer to AvaTrade review for more detailed information.
Since you have access to a wide range of instruments, there will always be an assent which you can spread bet on any time of the day.
Profit even when markets are falling
Even if market prices are falling, you can go short or sell the product and make a profit if your speculation is correct.
Trade on margin
With spread betting, you can trade on margin which enables you to open bigger positions. Do take note though that using margin puts your capital at risk.