Benefits of spread betting

  • The main benefit of spread betting as opposed to conventional forms of trading is that you can trade on both rising and falling markets, giving you the potential to make a profit regardless of whether the markets go up or down. But, there's plenty more to consider...

     

    Tax efficient earnings*

    All profits made in spread betting are exempt from UK Capital Gains Tax*. This automatically saves you from losing a large percentage of your profits. As spread betting is a derivatives product, it’s also exempt from UK stamp duty. (Tax laws are subject to change and depend on individual circumstances.)

    You can trade 24 hours a day

    We know it’s important for you to be able to access your account and trade whenever you want, wherever you are, particularly when market prices are moving quickly. So, we give you unrestricted access to your account 24 hours a day, 7 days a week. 

    And that’s not all: we run a number of our markets 24 hours a day; including major indices such as the UK 100 and Wall Street, which means you can still spread bet when the underlying markets are closed.

    Your money works harder for you

    As a leveraged product, when you spread bet you only need to deposit a small percentage of the full value of your position - this is known as margin. This means that the potential for profits, or losses, from your initial capital outlay is significantly higher than with traditional trading.

    Our margins factors for currencies start from just 0.5%, depending on the market you’re trading. See our range of markets section, or see the market information within our range of desktop, mobile or tablet trading platforms for further details.

    Ability to go long or short

    Spread betting is one of the few forms of financial trading that enables you to profit from falling market prices. So you can gain exposure to market movements regardless of the direction in which the markets are moving.

    For example, if you think the markets are going to rise, you go long on the price (buy). Your profits will rise in line with any increase in that price (and your losses will increase in line with any fall in price).

    If, on the other hand, you think the markets will fall you go short on the price (sell). Your profits will rise in line with any fall on that price (and your losses will increase with any rise in price).

    Trade on a huge range of markets

    With spread betting, you can not only take a position on thousands of individual shares, indices and currencies around the world, but also place trades on commodities, bonds and interest rates.

    Discover our range of spread bet markets.

    Indices, such as the UK 100, are some of the most widely traded markets in the world and are a great place to start if you’re new to trading.

     
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