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  • Spread betting vs. trading shares

    Spread Betting vs Shares Trading

    Many investors choose to spread bet the financial markets as it offers multiple benefits over physical shares trading.

    Such benefits include: utilising leverage to maximise potential profits, the ability to speculate on both rising and falling markets, a varied choice of over 12,000 financial markets and tax-free profits*.

    For UK traders, the most important difference between the two types of trading is the taxation…

    Any profit you make from trading physical shares is subject to Capital Gains Tax and Stamp Duty, whereas any profit you make through spread betting is currently entirely yours to keep*. (Remember, UK tax laws are subject to change)

    You can read about these features in detail on our benefits of spread betting page.

    Which type of trading suits you?

    For a quick and easy way to compare the features of spread betting and shares trading, view our comparison table below:

    Features Spread Betting Other Forms of Trading
    Free from Stamp Duty* Yes No
    Free from Capital Gains Tax* Yes No
    Free from commission Yes No
    Dividend and interest adjustments payable to your account Yes1 No
    Leveraged trades Yes Yes
    Access to global markets Yes No
    Ability to go long and short Yes Yes
    Immediate dealing Yes No
    Physical ownership of the financial instrument Yes Yes

    ÂąPositions are adjusted to reflect dividends.


    Next Step: Find out how to spread bet
  • Open an Account

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