Advantages of Spread Betting

Compared to traditional trading, spread betting offers numerous advantages:

Tax-free profits

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.

24-hour trading

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.