What is it about spread betting that makes it worthwile? Is spread betting for me?


The first and most simple advantage that spread betting provides is the money making chance it brings.

It is levereged and should you make the right choices you will simply be in the money.

HOWEVER - look around Spread Betting For Me and familiarise yourself with the disadvantages of spread betting.

Here are some of the other advantages of spread betting:

• You can trade the market long or short

Profiting from falling markets is not reserved to institutional fund managers or hedge funds anymore. Individuals who have an account with WorldSpreads can now also benefit from the possibility to short financial instruments, therefore maximising profits in volatile markets.

• No commissions

Most reputable financial spread betting firms offer an all-inclusive, no bad surprises, no extra costs service.

• No stamp duty on UK spread betting

Spread betting is a trading technique whereby you get exposure to a financial instrument without physically owning it. This means that you do not even have to pay stamp duty on your transactions. This represents a substantial saving compared to dealing with a regular stockbroker.

• No tax or CGT

The profits you make are free from UK capital gains and income tax. (Tax Laws are subject to change).

• No currency risk

Once you have elected your reference currency - EUR, $, £ - you have the facility to process all your transactions in that reference currency, without running any currency risk. This is because, as opposed to standard share dealing, WorldSpreads quote prices per point move, not per EUR, $ or £ amount.

• Instant execution - with most spread betting providers

You do not have to wait for your broker to get back to you before entering or closing any trade. Whenever you feel like spread betting, WorldSpreads offer instant execution by the telephone or via our fully interactive online dealing system, assuming appropriate liquidity in the markets.

• Bet small or large - you have control of your risk profile!

Good spread betting providers allows you to trade from as little as £1 (or currency equivalent) per point on all the markets - far smaller than you would be able to trade with a broker on the underlying markets.

• Hedging facilities

If you know of a foreign currency payment to be made in the near future and are happy with the current exchange rate, a good spread betting house can help you hedge against any adverse currency movement.

They quote the main currency cross rates and are happy to consider any specific request. This equally applies to hedging a portfolio of stocks for a limited period of time, or arbitraging between particular stocks.