Account type

Spreads v CFD’s v Traditional Share trading

 

Tax

Because Spread Trading is classed as a bet it is Free from all Capital Gains Tax, Stamp Duty.

CFD’s are free from Stamp Duty.

Shares you must pay both Capital Gains Tax and Stamp Duty.

 

Leverage

Both Spread trading and CFD’s are Leveraged products and clients should fully understand risks involved.  These trading products may not be suitable for all investor’s.  Please view full risk warnings for each product.

Share trading is not leveraged.  The shares must be purchased and paid for in full.

 

Timeframe

Both Spread’s and CFD’s are designed for short term and High frequency trading.  The cheap execution costs make them ideal for this purpose.  For a client building a long term portfolio however traditional share trading may be beneficial.  Clients wishing to hold positions from 6 months outwards should talk to our team to discuss the relative strategy and investment objectives.

 

Hedging

For Hedging purposes the best product is the CFD.  This is because of the vast range of markets and the fact Capital gains can be offset against your underlying position.

Spread trading can be used also for hedging but it is not a complete hedge.

 

Range of Markets

Range of products in all categories is vast but to note CFD’s offer more than Spread trading.  We offer over 7000 CFD’s ,4000 Spread’s. Important to note for a specialised trader.

 

Please contact us with any questions you may have –We are here to help.