Skip to content

Financial spread betting: The modern way to trade


On a day to day basis millions of people across the globe use leveraged market access to delve into a treasure trove of cultural pleasures by signing up to various streaming services. Well, like how you would only pay a small fee to watch hundreds of films or listen to thousands of songs you once would have had to buy each individually, now you can bet on the market’s movements without having to stump up the same amount of cash it would take to actually buy a share outright. This means that spread betting allows a financial flexibility to those who don’t necessarily have the amount of money required to substantially enter the markets by the more traditional routes.

If spread betting is the financial equivalent of online streaming (stick with me), then Spreadex might as well be Spotify or Netflix. Yet instead of Radiohead’s back catalogue or every season of House of Cards, Spreadex offers an unparalleled selection of market instruments, from indices to currency pairings to various companies, both already established mega-names and those AIM stocks with a big future.

Streaming-services are there for you through good times and bad, whether you’re ready to Netflix and chill or simply don’t want to leave the dank cave that’s become your bed. Well, so is spread-betting! Not only can you benefit from rising markets (duh!), but falling markets as well, perfect for making a profit when the world seems to be crashing down around your ears.

And just as online streaming has opened up a wealth of content for people to use wherever they are, Spreadex allows traders to make decisions and open positions on the move with its apps for iOS and Android. Not only that, but since the world is now a 24 hour party of global action, with market-changing events no longer confined to the parameters of a stock exchange’s official opening hours, Spreadex offers round the clock access to the FTSE 100 (Sunday night through Friday night), meaning investors can react to breaking market news, and any subsequent volatility, more efficiently.

If you step away from the streaming-comparisons for a sec there are still a whole host of benefits unique to spread-betting. Neither Capital Gains Tax or Stamp Duty are currently applied to any profits made when spread betting, though this does mean in the case of the former that losses are not allowable and therefore cannot be offset against profits elsewhere. There also aren’t any pesky broker’s or account’s fees to pay, the only charge coming from the ‘spread’, i.e. the difference between the buy and sell prices quoted by Spreadex, (plus funding costs for those who choose to roll trades past their expiry date).

There are, of course, a few disadvantages to spread-betting, such as never owning the physical stock, the possibility of having to make significant margin payments at short notice and the fact that you can lose more than your initial stake size. However, this doesn’t stop it from being the most modern way to trade, with Spreadex leading the charge on the investing revolution!

This Article was written by Connor Campbell, a financial Analyst at Spreadex Financial. You can follow Connor on Twitter @ConnorSpreadex

Looking for great investing ideas? Sign up to our free newsletter.

This article does not constitute investment advice. Make sure you do your own research or consult a professional advisor.

'How to' Guides

Our latest in-depth company reports

Detailed reviews of selected companies and investment trusts.

On the podcast

Sign up for great investing stock tips

Thanks to our Site Partners

Our partners are established, regulated businesses and we are grateful for their support.

CME Group
FP Markets
Back To Top