Benefits of betting

What are the main benefits of spread betting? Well, the most obvious one is that because you are placing a ‘bet’ and not purchasing a share the authorities treat it like a bet which means all your gains will be tax free!

You don’t need a broker; it’s optional with spread betting. Some people like to go through brokers in the same way they do with investments in shares but you don’t have to. The only cost you incur is the spread itself.

With spread betting trading is not just the plaything of the rich Riviera types, financial institutions and the like, its available to everyone. You can trade on individual shares and indices around the world, gold, silver, oil and foreign exchange are all available for you to try and make some money from. Also, you have a choice of markets to play.

Leveraged Trading permits you to set a bet with only a small part of the money generally required to purchase the underlying financial product. It has been known for this to be as low as 0.3% of the overall value of the trade.

There are risks to Leveraged Trading; you can run the risk of falling foul to sudden movements in the markets which can mean big losses as well as gains. For this reason many spread betters operate ‘stop loss orders’ to protect their open bets.