Comparison of the Trading Methodologies

SPREAD BETTING

CFDs

Differences

Trade same instrument in multiple currencies

Trades are denominated in the instrument’s currency

Exempt from capital gains tax*

Liable for capital gains tax*

No commissions on shares - this is built into the spread

Shares are charged a commission, but have lower spreads

All spread bets have a fixed expiry

Losses can be offset against profits for tax* purposes

 

Only CFD futures have a fixed expiry

Similarities
Ability to go long and short Ability to go long and short
Leverage trading Leverage trading
No stamp duty No stamp duty
Prices derived from underlying markets Prices derived from underlying markets
Same instrument range Same instrument range
*Tax treatment depends on individual circumstances and is subject to change. Tax laws may vary outside the UK​. Your profits and losses are amplified as they are based on the full value of your trade.