Advantage of Financial Spread Betting Vince Stanzione
Advantages of Financial Spread Betting Financial Spread Betting has been available for over 30 years however in the last 10 years its popularity has really exploded. Tens of thousands of retail investors everywhere from the UK and Europe, to Australia and South Africa trade shares, currencies, bonds and commodities on the financial stock markets daily. Here are some of the reasons why it has become so popular. Tax Free in UK Unlike traditional share dealing, you pay no taxes on your profits. They are not considered profits under tax laws, but a winning bet, and as such Capital Gains Tax does not apply. The transactions also involve no stamp duty, as the underlying share or commodity is never actually purchased – it’s just a bet on whether or not the value will rise or fall. No fees or commission Spread‐betting companies don’t charge commissions or brokerage fees. They include all costs in their spread. The last few years competition has become fierce with spread as low as 1 point. Profit from rising or falling markets One of the biggest advantages of spread betting is that it doesn’t matter in which direction the market is going – you can still make money. A profit can be made in a falling market as well as in a rising one. Also with fixed odds bets you can also profit from a range or dull market effectively betting on a market to do nothing. Trade on Margin Spread betting is leveraged, which means you only need to bet a small percentage of the value of your trades. You can make the bet using a fraction of the money it would require if you wanted to buy the actual shares from a stockbroker. This is also known as gearing. You can also choose the size of your stake, often much smaller than would be the case if you were speculating on the underlying market. Wide Range of Markets You can access thousands of markets from one account stock Indices, currencies, bonds commodities, shares or even, in some cases, house prices. Most Financial Bookmakers allow you to trade dire

Advantages of Financial
Spread Betting
Financial Spread Betting has been available for over 30
years however in the last 10 years its popularity has
really exploded. Tens of thousands of retail investors
everywhere from the UK and Europe, to Australia and
South Africa trade shares, currencies, bonds and
commodities on the financial stock markets daily. Here
are some of the reasons why it has become so popular.
Tax Free in UK
Unlike traditional share dealing, you pay no taxes on your profits.
They are not considered profits under tax laws, but a winning bet,
and as such Capital Gains Tax does not apply. The transactions
also involve no stamp duty, as the underlying share or commodity
is never actually purchased – it’s just a bet on whether or not the
value will rise or fall.
No fees or commission
Spread‐betting companies don’t charge commissions or brokerage fees. They include all
costs in their spread. The last few years competition has become fierce with spread as low
as 1 point.
Profit from rising or falling markets
One of the biggest advantages of spread betting is that it
doesn’t matter in which direction the market is going – you
can still make money. A profit can be made in a falling market
as well as in a rising one. Also with fixed odds bets you can
also profit from a range or dull market effectively betting on a market to do nothing.
Trade on Margin
Spread betting is leveraged, which means you only need to
bet a small percentage of the value of your trades. You can
make the bet using a fraction of the money it would require
if you wanted to buy the actual shares from a stockbroker.
This is also known as gearing. You can also choose the size of
your stake, often much smaller than would be the case if you
were speculating on the underlying market.
Wide Range of Markets
You can access thousands of markets from one account
stock Indices, currencies, bonds commodities, shares or
even, in some cases, house prices. Most Financial
Bookmakers allow you to trade directly from a website
without the need to download any additional software.
24 hour access
Some spread betting companies are open 24 hours a day
from Sunday night to Friday night. This allows trading in
hours even when underlying markets are closed. Dealing
can be done online or by phone. You can now also trade
with your mobile phone or smartphone including apps
that are available for the Iphone, Ipad and Blackberry
devices, so you can trade whenever or wherever is
convenient for you.
Control your losses
You can set limits on the losses you are prepared to take. These
are known as Stop Losses, or Limit Orders. They offer
protection against massive losses if the market moves against
you. Also most Financial Bookmakers offer Controlled Risk Bets
(CRBs) meaning that even if a stop cannot be filled in the
underlying market you would still be protected.
Hedging
Spread‐betting can be used as a hedging tool to offset against losses in your other portfolio.
For example, if you own shares which are decreasing in value in the short term, you can bet
on the value falling, and make a profit to offset
against the loss in value of the shares you hold.
Many investors use spread‐betting to hedge
against losses. Another popular hedge is Gold,
say you had some Gold coins and your worried
that Gold will fall but do not want to sell their
coins you could spread bet gold to go down
which would protect you.
Regulated Industry
The spread betting industry is tightly regulated. In the UK,
this is by the Financial Services Authority (FSA). It means
strict rules apply and the firms offering it are secure and
safe.
Don’t jump into Financial Spread Betting Blind
Before you try Financial Spread Betting it’s well
worth getting some good advice and training.
Spread Betting Veteran Vince Stanzione has
been trading for over 25 years and has
produced a course “Making Money From
Financial Spread Trading” which is a 160 page
workbook, 2 and half hours of DVDs and a
members only website. To find out more go to
www.fintrader.net
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