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  • How can spread betting benefit me?

    Benefits of Spread Betting

    No matter your level of trading experience, spread betting offers a range of benefits:

    • Trade on rising as well as falling markets - go long or short
    • Tax-free* profits
    • Trade 24-hours-a-day
    • Maximise your profits with leverage
    • Huge choice of markets

    Go long or short

    Spread betting offers increased flexibility as, unlike more traditional forms of trading, the potential to profit doesn’t stem solely from rising market prices.

    You can take a position on a market that is both rising and falling, enabling you to potentially profit regardless of which way prices are heading.

    You can do this by going long and buying a market on expectations that it will rise in value, or by going short and selling on expectations that prices will fall.

    For example, if you believe the price of gold will rise in value, you go long or buy. Your profits will then rise in line with any increase in the price of gold.

    If, however, you believe the price of gold will fall, you can go short or sell, and your profits will rise in line with any fall in the gold price.

    Alternatively, if your predictions are wrong and the price of gold actually falls in value, you’ll suffer a loss for every point the market goes below your open price.

    You can find out more about how this works on our how to spread bet page.

    Tax-free* profits

    In the UK, all profits made through spread betting are currently exempt from Capital Gains Tax (CGT).

    This instantly saves you the portion of your profits that would normally be paid in tax if you’d bought the underlying instrument through physical shares trading.

    Plus, as spread betting is a derivatives product - meaning it’s a financial contract derived from a traditional security such as a stock, bond, asset or market index – there’s also no Stamp Duty to pay in the UK.

    However, keep in mind that UK tax laws are subject to change and you should seek independent tax advice where necessary.

    Trade 24-hours-a-day (at a time that suits you)

    It’s important to us as your spread betting provider that you receive the best possible service, and that means ensuring you never need to miss out on a trading opportunity.

    With Finspreads, you have unlimited access to your trading account 24-hours-a-day, seven days a week. In most cases, you can even place a trade when the underlying markets are closed.

    You can also take a position when you're on the move by accessing your account via our range of trading apps for Apple and Android phone and tablet devices.

    Use leverage to potentially maximise your profits (margin trading)

    Leverage - also known as margin trading - enables you to maximise your profit potential by allowing you to trade the major financial markets with only a small percentage of the total value of the underlying instrument.

    Depending on your chosen market, the initial deposit requirement is typically between 1% and 10%.

    This means there’s the potential to make a high percentage return on your initial deposit with relatively small movements in the underlying market.

    It also makes trading the financial markets more accessible as you’re not required to deposit large amounts of money in order to take a position.

    Please remember, however, that your losses are magnified in exactly the same way as your profits. If the market moves against you it can result in larger losses than your initial outlay. Ensure you fully understand the risks involved.

    For more information about how you can protect your trades against losses, visit our managing your risks section.

    Trade on a huge range of markets

    With access to over 12,000 global markets – including popular indices such as the UK 100 and major currency pairs such as GBP/USD – you can trade on virtually any financial market with a Finspreads spread betting account.

  • Open an Account

    Spread bet from 10p per point with tight spreads and low margins

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