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Beginners Guide to Spread Betting New to Spread Betting? The Spread Betting Trading Centre has compiled the following guide
to explain how Spread Betting works Spread Betting vs. CFD Trading There are many similarities between these two types of trading. It is useful to know the key comparison features in order for the trader to make a decision on which one best suits his means. Similarities: No Stamp Duty is paid.
The trader does not own the shares he is trading with and so has no voting rights.
Margin trading is used.
Differences: Spread betting is commission-free, CFD trading is not.
Spread betting is exempt from Capital Gains Tax (subject to change), CFD trading is not.
Dividends are paid out, where relevant, to CFD traders but not to spread betters.
CFD contract periods are flexible; Spread bets are based on a fixed ownership where costs are incurred if the trader wants to roll the bet over. |
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