Spread betting and CFD trading both provide similar economic benefits to investments in companies, indices, commodities and currencies using margin. However, there are some distinctions between the two products.
Main CFD differences
Financing is optional thanks to the customisable margin feature
Invest in only a fraction of a unit with fractional trading
Specify the size of your trade in units or monetary amount
When trading with CFDs you buy or sell a number of units or a specific monetary amount of CFDs in an instrument, similar to the way you do when trading physical equities, except with CFDs you have the option to trade on margin, so you can take out a position that is worth much more than your initial deposit. You also have the option to trade CFDs in fractions of units when you trade with CMC Markets. Your profit or loss is determined by the difference between the price you buy at and the price you sell at, multiplied by the number of CFDs you hold.
Main spread betting differences
Tax-free profits - Unlike share trading, profits made from spread betting are exempt from capital gains tax (CGT) in the UK. Tax treatment depends on your individual circumstances. Tax law can change or may differ in a jurisdiction other than the UK.
Invest by stake size - Profit or loss is the difference between the price you buy at and the price you sell at, multiplied by your stake.
Only available to customers who reside in the UK or Ireland
When you spread bet, you simply choose whether the price of an instrument is likely to go up or down and decide how much to bet. The amount you wish to bet per point of movement in price is your stake. If the instrument moves in your favour, your profit is calculated by multiplying your original stake size by the number of points the instrument has moved. If it goes against you, your loss will be calculated in the same way.
There are no charges at all for creating a Live or Demo account on the Platform. There are however Holding Costs which are incurred when you carry a financed position past 17:00 New York time, for more information please see our question on 'What are Holding Costs?
You will need to have Adobe Flash Player version 10 or higher installed and internet access to use the Web based app. Flash Player 10 does not run on most 64-bit browsers, this may result in issues when logging on to the Platform. If this is the case, then please use the link below which will show you a step by step guide on how to download a 32-bit browser which you can use to get onto the Platform.
Use our Product Library to search for any product. If you know the name, stock code or common nickname, simply type it in and search. Or you can browse through our list of companies, indices, commodities and currencies and filter by type, region and country.
You can’t start trading until you fund your account. There is no minimum deposit, however if you have traded in similar products before we suggest an initial deposit of £1000.
Yes! If you have an iPhone or Android device you can trade on your mobile phone. Simply visit the relevant App Store from your mobile phone and search for CMC Markets to download either the CMC CFD App (called Trade It) or CMC Spread Bet App, or click for more information.
Yes, you can trade from anywhere you can get internet access, as the platform is web-based.
You can only deposit funds into your CFD or spread betting account using your local currency. Please contact a member of our Client Management Team for assistance on +44 (0)20 3003 8588 or via email at firstname.lastname@example.org. In the future we may open up the possibility of trading in other currencies.