Benefits of spread betting
Good reasons to spread bet with CMC Markets
Spread betting is a way of trading on a financial instrument, such as company shares or a commodity, without having to physically own it. This adds to the large number of benefits that spread betting offers compared to other traditional ways of trading, such as buying and selling shares through a stockbroker.
No stamp duty
Unlike with traditional share trading, you don’t have to pay stamp duty when you spread bet because you are not buying the underlying product, just betting on the price movement of that product.
Profits are tax free
Spread betting profits are exempt from capital gains tax (CGT) in the UK. However, tax treatment does depend on each customer’s unique circumstances and tax law can change or may differ in a jurisdiction other than the UK.
Trade with leverage
When you spread bet you are trading on margin. If the margin for a bet is £10 and the margin rate for that product is 5%. This means you are actually placing a bet worth £200 - much more than the £10 margin.
Margin rates typically range from 1% to 20%. Leverage allows you to do more with your capital – you can open more positions or bigger positions than you would be able to if you had to fund the whole position yourself. Remember that spread betting on margin can amplify your losses as well as your profits.
Risk management
A stop loss is a vital tool that helps you spread bet responsibly. Having a stop loss in place will ensure that the platform closes your position if price moves against you and reaches a level where you would rather cut your losses. Our new transaction based stop loss function will automatically suggest a stop loss level for every new bet you place, so you’re always covered. Other risk management features include trailing stop losses and take profit orders.
Access to the global markets
Spread bet on the price movements of international companies, indices, commodities and currencies, all from one account. Spread betting can be a low cost way to start trading new markets that you might not have considered before.
Commission-free trading
Spread betting is exempt from many of the costs that you face when you trade shares with a stock broker. Spread betting with CMC Markets is commission free and there are no account maintenance charges.
24-hour trading
CMC Markets gives you access to a host of global markets that are available to trade 24 hours a day, from Sunday to Friday night. So you can trade when it’s convenient for you and you can also take advantage of opportunities as they happen.
It's simple to place a bet on our platform
With our platform you can click on any buy or sell price you see to place a spread bet.
Go long or short
With spread betting it's just as easy to make money from falling markets as it is from rising markets.
Don’t forget you can also lose money too.