Financial Spread Betting

Benefits of Spread Betting

Financial Spread Betting is a way of trading on a financial instrument such as a share or a commodity without having to physically own it. This means that financial Spread Betting has a large number of benefits over traditional ways of trading such as buying and selling shares through a stockbroker.

Tax Free Trading

For UK residents, the profits you make from Financial Spread Betting are free from UK capital gains tax.

Commission Free Trading

With Financial Spread Betting there are no commissions to pay, no matter how often you trade.

No Stamp Duty

Unlike traditional share trading, Financial Spread Betting incurs no stamp duty on UK Shares.

Profit when markets fall as well as rise

Traders can profit from bull and bear markets. Because you are trading on the price movement of a financial instrument without physically owning it, it is as easy to initially sell the instrument as it is to buy it. This is known as ‘going short’ and allows you the opportunity to profit from a fall in the instrument’s price by selling high and buying back cheaper.

You can view examples of going short in our Examples section

Margin Trading

Financial Spread Betting is a leveraged product which means that you only have to put up a percentage of your total exposure to the market. This is an efficient use of your money because you only need to allocate a small proportion of the value of your position to secure a trade.

In effect, you are able to magnify the returns on your investment. Losses too will be magnified so margin trading is not necessarily for everyone. Typically margins with 32Red Spreadbet vary between 1% and 10%.

Access to Global Markets

Spread Betting allows you to trade on a whole host of global instruments all from one account. Spread Bet on Shares, Indices, Commodities, Sectors, Treasuries and FX 24 hours a day. View our range of markets.

Benefits of Spread Betting with 32Red Spreadbet Spread Betting examples