Spread betting vs CFDs
Learn more about the differences between spread betting and CFD trading.
Similarities
The fundamentals of spread betting and CFD trading are in fact very similar but there are some key differences. This section aims to identify those similarities and key differences to help you to decide which trading account to open with us.
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Range of markets
Spread bets and CFDs offer a broad range of markets to trade including indices, stocks, commodities and forex -
Trading platforms
You can trade on City Index's browser-based or downloadable platforms as well as native mobile and tablet trading platforms -
All order types
Our full suite of order types are available to both spread betting and CFD trading accounts
Key differences
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UK Capital Gains Tax*
Currently in the UK, any profits made from spread betting are free from UK Capital Gains Tax. This benefit is not applicable to profits made from CFD trading -
Commission
CFD equity trades are the only positions you are charged a commission for on each trade you place – other CFD trades do not carry a commission charge. Spread betting positions on any instrument do not incur a commission charge, but you pay a slightly wider spread -
Trade Sizes
Trade sizes differ across spread bets and CFDs. Spread bets are traded in pounds per point. With CFDs you trade a number of CFDs. For example, a £1 spread bet is the equivalent of 100 shares in a CFD equity trade
| Spreads | CFDs | |
| Range of markets | Thousands of global markets including shares, indices, FX and commodities | Thousands of global markets including shares, indices, FX and commodities |
|---|---|---|
| Commission | Free | Equity markets only |
| Widened Spread | Yes | Non-equity markets only |
| Trade Size | £ per point | CFDs |
| Minimum Trade Size | 50p per point | 1 CFD |
| Platforms Available | Browser, mobile and tablet | Browser, mobile and tablet |
| Risk Management Orders | Full tools available | Full tools available |
| Demo Account | Yes | Yes |
Spread betting vs CFD share trade
To illustrate the difference in spread betting and CFD trading, let’s say you go long on a UK based Company ABC’s shares. The example below shows how you would do this as a spread bet and the equivalent CFD trade.
