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Cedric M

What differences are there in CFD and spread betting?

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Hello Komu,

CFD and spread betting are essential investment vehicles and provide similar vital advantages. They are also both leveraged products. However, there are crucial characteristics in each that make them different from one another. 
Their main difference is in the tax treatment. Spread bets are exempted from the capital gains tax, unlike CFD. The profits you get from trading CFD are offset for tax purposes.
In spread betting, you gamble a particular amount at every point the price moves in the essential asset. In CFD, however, you exchange the price difference depending on the contract's opening and closing points.
Apart from futures, other CFD do not expire unlike spreads bets; they have an expiration date.
While trading in CFD, you need to pay a commission, unlike in spread betting where you do not pay commission.

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