CFDs and spread betting

These two products are very similar. They allow traders to trade on the same markets with the same amount of leverage. There is, however, one key difference - financial spread betting can be exempt from capital gains tax* in certain jurisdictions.  

If you are a resident in the UK, a tax efficient* method is to trade via spread betting. And if you are not a UK resident, then CFDs would be the default trading product for you.

There are also minor differences in terminology, expiries and instruments’ pricing mechanics, but in general the two products replicate each other very closely.