Financial spread betting has a number of key advantages over
traditional trading methods including:
No capital gains tax* or stamp duty – You can benefit from
all the price action of ownership without having to pay stamp duty or CGT* on
any profits and the lack of share certificates and registration makes
administration easy.
Trade in falling as well as rising markets – How many times
have you sat there looking at a share price or chart and thought “I really
think this is a sell right now.”? With Spreadex you can take advantage of
falling markets as well as rising markets by going short (selling) with a
spread bet.
Offset the risk of your existing portfolio or investments -
You may have built up a nice investment portfolio which you would like to
protect in the event of a major market downturn. By shorting against your investments
in the spread betting market you can protect your portfolio against adverse
movements in the event of a market crash.
Low cost of entry – As you are trading a leveraged product
and you don’t actually own the underlying stock, you only need to stump up a
fraction of the cost of trading in the physical underlying asset. In addition,
minimum stakes are only £1, so you can start small without risking too much
capital.
*Tax treatment depends on the individual circumstances of
each client and may be subject to change in the future.