We found 11 online brokers that are appropriate for Trading Spread Betting Vs Cfd.
Understanding spread betting vs CFD requires certain explanations before we move across the differences and similarities between the two trading practices in financial markets.
Both products have margins and both provide similar benefits with respect to investments in currencies, commodities, indices and shares. So, it is important to discuss spread betting vs CFD.
Spread betting is highly popular in the United Kingdom. It is one type of financial derivative trading and money earned from it is exempted from the capital gains tax in the country.
It is also popular among such traders who can consider it flexible working from home along with his or her full-time bureau job.
The two are different in several factors and one of the primary ones is taxation. Traders making money from CFD trading need to pay capital gains tax.
Spread betting is not subject to capital gains tax which has a distinct advantage.
CFD is made available across the world while spread betting is available in Ireland and UK.
When a trader spread bets, the choice to make is whether the price will rise or fall.
You would need to decide the betting volume, which means the amount of capital to risk in the financial instrument that includes currencies, commodity, stock index or shares.
Let us understand it in this way, if the price of a financial product rises, profit is made, and this is calculated by multiplying stake size with the number of points of the movement.
The price may also be unfavorable and this loss is calculated in the same way. It is important to know that losses may sometime exceed deposits.
In CFD a trader buys or sells several units as an instrument. The process is something similar to buying or selling physical instruments.
Unlike the physical instruments a trader does not need to own the underlying asset in CFD. Besides, one can trade on margin and take a position of value more than the capital deposited.
The tax treatment on the profits is subject to ones circumstances. It may differ from one jurisdiction to another and from one country to another.
The law implemented in the United Kingdom may not be applicable in another country.
On margin trading you would need to understand that the capital needed in deposit reflects a percentage of the total value of the position.
Under such a situation, the losses can be extremely higher, and the capital may become nil. This is to suggest that margin trading is not for everyone due to the high risk attached to the spread betting or CFDs.
Traders should consult with experts before getting into margin trading.
Tax-efficient trading - Spread betting is exempt from stamp duty in the United Kingdom and hence there is no capital gains tax attached to it in the country.
There is a little difference in CFD trading as a trader here does not own the underlying asset. No stamp duty is paid but the capital gains tax is not exempt.
Short selling - In both, one can go for long-term as well as short-term status. Usually a longer-term is seen during rising prices and the opposite in falling prices.
a CFD benefits from leverage. A spread bet on the other hand is a financial leveraged product. This means, in a spread bet one needs to deposit a fraction of the asset value.
In spread, one would need to firstly find the difference between entry and exit prices and thereafter multiply it by the investment. In CFD the difference of entry and exit prices is multiplied by one's CFD units.
It is recommended to find out from one's respective broker information regarding commissions charged and holding costs. The two may differ from one brokerage firm to another.
Both spread betting and CFD are the most effective ways to make money in the financial markets. In this article we have discussed spread betting vs CFD and perhaps the explanations were understood and realised.
In spread betting vs CFD difference we have learned about taxation. A spread bet is not taxed while CFD is taxable under capital gains tax.
In a CFD a trader does not need to own the underlying asset, unlike physical instruments as one can trade on margins.
You should research information to gain the knowledge for both the products well before investing. The two are risky options and only those who prepare with good planning and skills may emerge from receiving profits. Consult experts when buying or selling.
If you are researching CFDs make sure to read through the below CFD related guides. You will find something useful.
We've collected thousands of datapoints and written a guide to help you find the best Spread Betting Vs Cfd for you. We hope this guide helps you find a reputable broker that matches what you need. We list the what we think are the best spread betting vs cfd below. You can go straight to the broker list here.
There are a number of important factors to consider when picking an online Spread Betting Vs Cfd trading brokerage.
Our team have listed brokers that match your criteria for you below. All brokerage data has been summarised into a comparison table. Scroll down.
We compare these features to make it easier for you to make a more informed choice.
Here are the top Spread Betting Vs Cfd.
Compare Spread Betting Vs Cfd min deposits, regulation, headquarters, benefits, funding methods and fees side by side.
All brokers below are spread betting vs cfd. Learn more about what they offer below.
You can scroll left and right on the comparison table below to see more spread betting vs cfd that accept spread betting vs cfd clients
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IC Markets
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Pepperstone
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SpreadEx
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City Index
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Markets.com
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IG
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AvaTrade
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FXPro
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phoenixmarkets
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itrader
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oinvest
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Regulation | Australian Securities and Investments Commission (ASIC), Financial Services Authority (FSA), Cyprus Securities and Exchange Commission (CySEC) | Financial Conduct Authority (FCA), Australian Securities and Investments Commission (ASIC), Federal Financial Supervisory Authority (BaFin), Dubai Financial Services Authority (DFSA), Capital Markets Authority of Kenya (CMA), Pepperstone Markets Limited is incorporated in The Bahamas (number 177174 B), Licensed by the Securities Commission of the Bahamas (SCB) number SIA-F217 | Financial Conduct Authority (FCA) | Financial Conduct Authority (FCA), Australian Securities and Investments Commission (ASIC), Monetary Authority of Singapore (MAS) | Cyprus Securities and Exchange Commission (CySEC), Financial Sector Conduct Authority (FSCA), Financial Conduct Authority (FCA), Australian Securities and Investments Commission (ASIC) | Financial Conduct Authority (FCA), Australian Securities and Investments Commission (ASIC) | Central Bank of Ireland, Australian Securities and Investments Commission (ASIC), Financial Services Authority (FSA), Financial Stability Board (FSB), British Virgin Islands Financial Services Commission (BVI) | Financial Conduct Authority (FCA), Cyprus Securities and Exchange Commission (CySEC), Financial Sector Conduct Authority (FSCA), Securities Commission of the Bahamas (SCB) | Cyprus Securities and Exchange Commission (CySEC) | Cyprus Securities and Exchange Commission (CySEC) | Southern African Financial Sector Conduct Authority (FSCA) |
Min Deposit | 200 | 200 | 1 | 25 | 250 | No minimum deposit | 250 | 100 | 500 | 215 | 200 |
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Used By | 60,000+ | 10,000+ | 10,000+ | 14,000+ | 10,000+ | 239,000+ | 200,000+ | 10,000+ | 10,000+ | 10,000+ | 10,000+ |
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Platforms | MT4, MT5, Mirror Trader, ZuluTrade, Web Trader, cTrader, Mac | MT4, MT5, Mac, ZuluTrade, Web Trader, cTrader, Tablet & Mobile apps | Web Trader, Tablet & Mobile apps | MT4, Web Trader, Tablet & Mobile apps | MT4, MT5, Web Trader, Tablet & Mobile apps | MT4, Mac, Web Trader, L2 Dealer, Tablet & Mobile apps | MT4, Mac, Mirror Trader, ZuluTrade, Web Trader, Tablet & Mobile apps | MT4, MT5, cTrader, Tablet & Mobile apps | MT4,mac,Android.iPhone/iPad | MT4,iOS,MacBook,iPhone | MT4,iOS,MacBook,iPhone |
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Learn More |
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Up with icmarkets |
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Up with pepperstone |
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Up with spreadex |
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Up with cityindex |
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Up with marketscom |
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Up with ig |
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Up with avatrade |
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Up with fxpro |
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Up with phoenixmarkets |
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Up with etfinance |
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Up with oinvest |
Risk Warning | Losses can exceed deposits | CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 79.3% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money | Losses can exceed deposits | 75% of retail investor accounts lose money when trading CFDs with this provider | 84% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money. | Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 76% of retail investor accounts lose money when trading spread bets and CFDs with this provider. You should consider whether you understand how spread bets and CFDs work, and whether you can afford to take the high risk of losing your money. | 79% of retail investor accounts lose money when trading CFDs with this provider | Your capital is at risk | Your capital is at risk | Trading leverage products may not be suitable for all traders. 71% of retail CFD accounts lose money. | Your capital is at risk |
Demo |
IC Markets Demo |
Pepperstone Demo |
SpreadEx Demo |
City Index Demo |
Markets.com Demo |
IG Demo |
AvaTrade Demo |
FxPro Demo |
Phoenix Markets Demo |
ETFinance Demo |
Oinvest Demo |
Excluded Countries | AF, GN, SL, BW, IR, SY, MM, IQ, TG, KH, LS, YE, CI , LR, ZW, CU, LY, TZ, CG, ML, BO, LR, NE, AO, GM, NG, AG, GH, KR, KG, GN, SN, NA | BR, KR, IR, IQ, SY, JP, US | US, TR | US, CF, TD, CG, CG, CI, CU, GN, ER, GN, FR, GW, HT, IR, IQ, KR, LB, LR, LY, MM, NZ, NG, SL, SO, SD, SY, TM, UZ, VE, EH, YE, ZW | RU, BR, CH, ZA, SG, JP, US, CA, BE, IL, TR, NZ, MY, SY, TH, ID, IR, IQ, HK, PH, PR | US, BE, FR, IN, IL, PL, ZW | BE, BR, KP, NZ, TR, US, CA, SG | US, IR, CA | BE, CA, IR, JP, KP, US, BA, ET, IQ, UG, VU, YE, AF, LA, TR, SY, IL | US | UK,US |
You can compare Spread Betting Vs Cfd ratings, min deposits what the the broker offers, funding methods, platforms, spread types, customer support options, regulation and account types side by side.
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We have listed top Spread betting vs cfd below.