spread betting accounts
spread betting accounts
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Am I better to use CFDs to trade or spread betting to trade? (My live account will be open in a weeks time).?
I will have a live trading account opened up in a weeks time with my bank. I know how to trade both with CFDs and spread betting as I’ve had some practice for months.
I know that trading with the smallest stake £1/point on spread betting is like playing with 100 shares of stock, and with my bank, the CFDs are traded on margin at 10% which is like trading with 10 shares of stock.
What I would like to know is am I better to trade the financial markets with CFDs or spread betting as I’m not quite sure which is best? What I do feel, however is that CFDs are less risky as the leverage isn’t as high as to the likes of spread betting, I don’t care about if CFDs are taxed either, I just want the safest option out of the two?
Which would you recommend I use? Please I really need your help, thanks.
‘What I do feel, however is that CFDs are less risky as the leverage isn’t as high as to the likes of spread betting, I don’t care about if CFDs are taxed either, I just want the safest option out of the two?’
That is wrong, both spread betting and CFDs offer equal leverage - the two products are very much identical and both are equally risky. If you are based in the UK, Ireland or Australia then spread betting is the right choice as all gains are tax-free unlike CFDs. Spread betting also allows to get into future positions which avoids the daily financing charges (not possible with CFDs). If you are based outside the UK, Ireland or Australia then you have to go for CFDs.
http://www.stocktradingrobot.org/PFR
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