CFDs vs Spread Betting

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@ryan9921

bh the bottom line is they are essentially the same. The key technical difference is that spreadbetting you are literally just betting a set amount per point that the value of the underlying moves whereas with CFDs you are trading an actual derivative rather than making a bet.

Hence why spreadbetting is taxed (or rather not taxed) under gambling and CFDs are taxed as CGT.

Cool, that makes sense. So you’re just making a wager with the broker rather than trading a derivative? That adds up, thanks!