What are the possible reasons for the growth of the spread trading industry?

For those involved with spread trading or spread betting as it is more commonly known, there is money to be gained from taking part in this industry.

There are also major risks, but spread betting has been a major growth market in the UK over recent years. At the last count, the number of spread traders is now heading towards one million. But, what are the possible reasons for this?

Spread betting is easier to understand than other financial tools and the process is less complex.

Spread betting covers a wide range of markets and not just financial ones. You can spread trade on sport as well as on house prices and other such markets.

Any profits that you make from spread betting are currently free from Capital Gains Tax. A spread trader may also be excused Income Tax on their profits, but this is dependent on if they have another source of income which they rely on.

The flexibility of spread betting means that you can trade outside the usual market hours. The majority of spread betting companies are open 24 hours a day, even when the traditional markets are closed.

As we have covered above, there are many reasons why spread betting is becoming more and more popular in the UK. There are risks associated with spread betting, but as long as you are aware of how the markets can change, it can be a great thing to get involved with.