Financial spread betting is becoming an increasingly popular alternative investment option for small investors in the UK. The reason for this surge in popularity is threefold. Firstly, the recent stock market volatility has meant that many shares and other equities have been losing value. Spread betting allows you to speculate on falling as well as rising stock market values, as you are merely speculating on the future performance of a financial instrument such as a share or currency, rather than investing in them directly. Secondly, because spread betting is classified as gambling rather than trading, it is exempt from capital gains tax* and stamp duty*. Lastly, you don’t have to pay any commission to a stockbroker, so it can work out as a better alternative than dealing in equities, while offering similar profit potential, depending on your investment strategies.
Spread betting can be very profitable, but it can be very risky as well. That’s why it really pays to learn as much as you can about the process of spread betting, as well as the financial markets, before you invest any money or go on an expensive spread betting course. The advice section of the Tradefair Spreads website is a great place to begin, as this contains lots of easy to follow articles and videos describing the fundamentals of spread betting. While there are a few online spread betting courses available, these can be quite expensive. One of the best ways to get an in-depth knowledge of the world of spread betting is to get hold of the Tradefair Spreads Little Black Book. This book is free when you open your account, along with a deposit bonus of up to £100, to all new Tradefair customers after they have made five non-share bets. It contains lots of handy tips and tricks for successful spread betting, as well as giving you all the information you need to get started in your spread betting career in an easy to digest format – and you can save more money for trading instead of spending it all unnecessarily on spread betting courses! Terms and conditions apply, click here for details.
*Tax laws can change and may differ in other jurisdictions outside the UK.