Spread Betting VS CFD Trading


I have seen one other post discussing the spread betting, and if it could be added on trading212, although no direct reply from T212 staff in regards the future addition to the platform.
For UK residents, spread bets seem a nice way to play the market direction, and the main advantage is nothing to worry about with TAX, as everything is tax exempt.

Just wondered what peoples thoughts were on this topic?

I’m toying with CFD’s - but I really wouldn’t be looking forward to the head ache at the end of the year sorting it for tax. The only way I can see CFD’s working nicely is if my trades over a year were say - under 100 trades. But still, that’s only 50 trades in and out, I just don’t think I could bare the stress of making sure 10,000 trades all tallied etc… hence why I though spread betting would maybe work out better?

Thoughts? Advice? :slight_smile:

If it adds to Trading212’s profitability I’m all for it. But I’m not lacking in choice for quality spread betting platforms.

Is it something you’ve had a go on?
I have seen some brilliant platforms, and had a play on some demo accounts etc, but dare I say … I’m so used to T212 now it feels strange on another platform lol.

I could not find any platforms that could do small sums like fractional - like T212 cfd offer.

Yeah, IG is pretty damn good. Although I would really not advise doing any type margin trading. I’ve only lost money doing it overall.

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More choice = better. But it would mostly be better for T212 :joy: Spread betting is a whole lot more lethal than CFDs, which is probably why it is tax free. At its core it is gambling. Needless the house always wins :sweat_smile::sweat_smile:

Yea, still on the fence really.
I wanted to dip my toe in with say £500, but it seems the min trade amounts are too high for such a small starting balance. Whereas CFD fractional, no issue at all.

I was aiming on trading over week to month range, hedging sectors etc. All new to me though, hence the reasons for starting small(ish).

I wouldn’t say it carries any more risk than a CFD. In fact, it can arbitrage away currency risk. Since you are betting on the spread of the price in points, not say USD or EUR. It’s literal number movements. The price is calculated differently for spread betting instruments as it’s not in any currency.

Trust me that £500 would be wiped out within a matter of seconds :sweat_smile: the spreads are a lot bigger and the cost per pip is also a bit more than on CFDs. The tax free bit is tempting but I would steer clear :grin:

I’m not debating that if you deposit £500 you’ll probably lose it. But it’s really not that bad. I’ve played around alot with it in the past, losing money with forex and stuff.

Thanks anyways guys, value your opinions :+1: