Spread betting in the UK
Spread Betting in the UK
Financial Spread Betting
Financial spread betting is an exciting way of trading the rise and fall in the value of an asset without actually owning it. With ETX Capital you can speculate the rise or fall in value of currencies, shares, indices and other assets in international markets.
Placing a Spread Bet
Placing a spread bet is simple; for each market you will be presented with a ‘buy’ and a ‘sell’ price. By opening a position at the ‘buy’ price, you are going long; by opening a position at the ‘sell’ price, you are going short. The difference between both is known as the spread; if you think the value of the market will rise, you will open at the ‘buy’ price; if you think it will fall you will open at the ‘sell’ price. If the market moves in the direction you predict, the more profit you make; if the market moves in the opposite direction to your prediction, the more you lose.
Spread Betting Benefits
To take a position you don’t need large amounts of capital, only a small deposit which allows for greater leverage; and if you are a UK resident your profits are tax and commission-free. With ETX Capital you can trade thousands of financial assets from a fast and dynamic platform, giving you the flexibility to trade at your desk, on your commute or in the comfort of your own home, so you can take full advantage of the most up-to-date trading opportunities during the trading hours of each market session.
We offer four trading platforms, ensuring that there is a product for all traders. ETX Trader, a user-friendly platform with limited risk, ETX TraderPro, a feature-rich platform with technical trading tools – and ETX MT4 and ETX Binary. Apply for an account at www.etxcapital.co.uk and start your live trading experience today. All you have to do is take a position.
One of the advantages of spread-betting in the UK is that profits are tax-free. Since spread betting is currently considered to be a form of gambling by HMRC, no Capital Gains Tax is due on proceeds. This means that if you win you get to keep 100% of your profits, untaxed. However, losses cannot be used to offset taxes.
Spread betting with ETX Capital
By selecting ETX Capital as your spread betting provider, you will receive;
- Thousands of spread betting markets to choose from – including Indices, Currencies, Commodities and Equities.
- 4 Different Trading Platforms – ETX Trader, ETX TraderPro, ETX MT4 and ETX Binary – each tailored to suit a different trading style.
- Award Winning Services
- 2011 – Best Value for Money – Investment Trends
- 2012 – Broker with the Best Online Charts – Money AM
- 2013 – Best Provider of Forex Trading Tools and Software – UK Forex Awards
- High quality customer service – Our multilingual Customer Service Team is here to answer any questions or solve any difficulties which you might be experiencing. ETX also offers a support website available in more than fifteen different languages, giving a wide range of answers to frequently asked questions.
- An education programme – ETX runs international trading seminars, online trading webinars and extensive trading courses for clients. For more information, visit our Education and Tools page.
- Significant security measures and FCA regulation – ETX Capital is regulated by the UK’s Financial Conduct Authority. Client funds are secured in trust with top tier banks and kept completely separate from company money. ETX Capital is also part of the Financial Services Compensation Scheme; in the unlikely event of company bankruptcy, individual clients are entitled to up to £50,000 worth of compensation.
Apply for an account now and experience the benefits of trading with ETX Capital.
Spread betting vs standard trading
Though spread betting is a form of trading, there are a number of differences between spread betting and more traditional forms of trading. We have already touched upon one of those distinctions – spread betting profits are tax free, whilst profits made from regular trading are not.
However, there are further contrasts which serve to differentiate spread betting from other types of trading, such as the concept of leverage. Essentially, leverage, also known as margin, means that spread bettors have the ability to place large trades with an initial stake which is only a fraction of the value of the actual position. This is different to traditional trading, where the sum total of the trade equals the amount staked on the trade.
Since the initial sum put in is smaller, if the markets move in a way which is beneficial to the trade then the profit margin can be much higher than it is in regular trading. However, if the markets move in the opposite direction, the loss-making potential is significantly greater than it is in regular trading, since with certain forms of spread bets traders can lose more than the amount they have invested, something not possible with traditional trading.