Please Explain Spread-betting vs CFD’s

[Lawrence McOchillo 0]

I am new to trading and I'm not sure if there is a difference between spread-betting and CFDs. Could you help me understand the two?

[Simon Mugo 0]

Hi Lawrence

When it comes to CFD and spread-betting they are very much alike but with one main difference.

The first is the difference in the taxes paid on any potential profits made. There is no stamp duty to be paid on either of the accounts, but CFD’s are liable for capital gains tax. So if you do profit from your CFD trading then you will need to account for that.

Spread-betting, on the other hand, is different. It is not liable for capital gains tax.

One other difference you will need to note is the countries in which you can open a spread betting or CFD account. Spread betting accounts are only available in the UK and Ireland while CFD accounts are available in the majority of countries. However, you can not trade CFD’s in the USA.