Spread betting vs. CFD trading
So, what’s the difference between spread betting and CFD trading?
You may have noticed that trading CFDs and spread betting with CMC Markets both offer a number of similar benefits and features. For example, both give you access to global markets through a powerful yet user-friendly platform. Both are leveraged products that allow you to profit from rising and falling markets, and with both, you don’t actually own the underlying instrument.
However, there are a few differences between spread betting and CFD trading. The table below compares the benefits and features of our two products, so you can decide whether you’d like to spread bet or trade CFDs, or both.
| Benefits | Spread betting | CFD trading |
|---|---|---|
| No stamp duty* | Yes | Yes |
| No capital gains tax* | Yes | No |
| Go long OR short | Yes | Yes |
| Trade on margin | Yes | Yes |
| Customisable margin | No | Yes |
| Advanced risk management | Yes | Yes |
| Advanced charting | Yes | Yes |
| Portfolio mixer | No | Yes |
| 24-hour trading | Yes | Yes |
| Access to global markets | Yes | Yes |
| Commission-free trading | Yes | Yes |
| Fractional ownership | No | Yes |
| Dividend payments & deductions | Yes | Yes |
Spread betting offers a tax-efficient way to invest if you’re a UK resident. CFD trading is suitable for traders who want greater control of their levels of risk by customising their margin requirements and who want the flexibility to trade long and short term cost effectively, to hedge against physical positions or to simply to trade in round amounts of units.
Whatever your preferences are, with us you’ll get an industry-leading trading experience, backed by award-winning education and support. Click here for more details on the benefits and features of spread betting and CFD trading with CMC Markets.
*According to current UK tax law. Tax laws are subject to change.