No tax on your spread betting winnings

To become involved in spread betting you do not need to have a lot of money to put up. This is one of the common misconceptions about spread betting. Spread betting does not require you to put all the money up front for the commodity that you might be trading on.

Typically you will be asked for on or around 10% of the actual value. When trading on the stock market you have to pay up front for whatever you are trading on. This is one of the great advantages of spread betting. You are also not limited to a maximum or minimum that you have to bet you. You could bet 10 pence if you wanted to.

Some of the other great advantages of spread betting are that there is no stamp duty to be paid on your winnings unlike the 0.5% that you pay on a traditional share purchase. They are also not subject to capitals gains tax.

However, spread betting isn’t for everyone. It isn’t particularly suited to those who are looking for a long term investment. It is more of a faster pace, quick way of making (or losing) money.